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Old 19.09.2012, 22:20
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Can I save taxes through house buying with non-Swiss debt?

Hello
Can I loan money (e.g. 800k) for buying a house in Switzerland, from a non-CH individual, so that this debt will be taken into account in my annual tax calculation here in CH? (if it is relevant at all, I am non-EU, L permit holder)
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Old 19.09.2012, 22:24
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Re: Can I save taxes through house buying with non-Swiss debt?

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Hello
Can I loan money (e.g. 800k) for buying a house in Switzerland, from a non-CH individual, so that this debt will be taken into account in my annual tax calculation here in CH? (if it is relevant at all, I am non-EU, L permit holder)
If someone will loan you money yes, it's a loan, any interest payable is deductible against the assumed income from the notional rent. I suspect you can't buy a house on an L permit............buying 1 property for 800k won't make having a company viable, as I said its a get round for rich people meaning 10million plus to invest.
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Old 19.09.2012, 22:29
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Re: Can I save taxes through house buying with non-Swiss debt?

Thanks. Only the interest is considered or the settlements as well?
Hypothetic example: house costs 480k. I have a 20 years loan, i.e. 240 settlements of 2000 SFR a month + 100 SFR interest; assume that the rent is 1500 SFR. Would this imply that I get a tax reduction of 2000 + 100 - 1500 = 600 SFR?

Thanks

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If someone will loan you money yes, it's a loan, any interest payable is deductible against the assume income from the notional rent. I suspect you can't buy a house on an L permit............
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Old 19.09.2012, 22:36
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Re: Can I save taxes through house buying with non-Swiss debt?

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Thanks. Only the interest is considered or the settlements as well?
Hypothetic example: house costs 480k. I have a 20 years loan, i.e. 240 settlements of 2000 SFR a month + 100 SFR interest; assume that the rent is 1500 SFR. Would this imply that I get a tax reduction of 2000 + 100 - 1500 = 600 SFR?

Thanks
Only interest is an expense not capital.........I don't think this is going to work, your talking about 20 years, how long is your L permit valid for......which can't be renewed for ever..........
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Old 19.09.2012, 22:41
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Re: Can I save taxes through house buying with non-Swiss debt?

you are right. But I have plans to stay.
So in my example, does it mean that the interest is supposed to be higher than
the rent for having a tax return?

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Only interest is an expense not capital.........I don't think this is going to work, your talking about 20 years, how long is your L permit valid for......which can't be renewed for ever..........
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Old 19.09.2012, 22:44
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Re: Can I save taxes through house buying with non-Swiss debt?

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you are right. But I have plans to stay.
So in my example, does it mean that the interest is supposed to be higher than
the rent for having a tax return?
It can be higher or lower, 1 will mean you pay more tax, one less tax.

I never knew non EU on an L could choose to stay, it's not a permanent permit, it's a temporary one. Please don't start a third thread on this subject....
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Old 19.09.2012, 22:51
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Re: Can I save taxes through house buying with non-Swiss debt?

I will not, no worries. But just for your information, l permit usually turns into B after few years, and then B can potentially turn into C

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It can be higher or lower, 1 will mean you pay more tax, one less tax.

I never knew non EU on an L could choose to stay, it's not a permanent permit, it's a temporary one. Please don't start a third thread on this subject....
 




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