Tax on Savings in Switzerland: Rules for Expats?

[jayM]

I've read several threads about withholding tax on this forum.

I would like to know if I need to pay ongoing taxes on the following wealth I accumulate over a 12 ”“ 24 month period.I am deregistering here in Norway where I have always lived.Moving to Switzerland and setting up an XYZ AG where I am employed and receive 15,000 CHF per month in salary.Every month, I then set aside 4,000 CHF in cash as savings in my nightstand drawer.After a year has passed, I have 48,000 CHF lying around, should I continue to pay tax on this money? It is taxed in the form of the salary I receive from the company which withholds and pays taxes on the amount.

Me and the company are, of course, resident in Zug.Can anyone answer this?

 

[apres777]

If the money you save comes from your salary on which you already pay tax (gross / net) then, as far as I know, you don't have to pay any more tax on the money you save. I mean, where would that lead if you had to pay tax on your money again? (When you spend your money you will end up paying taxes again anyways VAT etc)
However, if you invest your money, even if it's just a call money account and you receive interest, you may have to pay tax on the investment income (interest earned).

 

[polonieth]

apres777 said:
If the money you save comes from your salary on which you already pay tax (gross / net) then, as far as I know, you don't have to pay any more tax on the money you save. I mean, where would that lead if you had to pay tax on your money again? (When you spend your money you will end up paying taxes again anyways VAT etc)
However, if you invest your money, even if it's just a call money account and you receive interest, you may have to pay tax on the investment income (interest earned).
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Well, in Norway, they have a wealth tax, so you do pay tax on money you've already paid tax on. Insanity.

Last edited: Apr 3, 2024

 

[JackAlabama]

polonieth said:
Well, in Norway, they have a wealth tax, so you do pay tax on money you've already paid tax on. Insanity.
Click to expand...

switzerland has the same insanity.
wealth tax.
albeit rates are somewhat lower than elsewhere its still a privacy desaster, very intrusive and doesnt do much anyway.

 

[jayM]

Do you know what the lower limit for wealth tax is in Switzerland?

 

[clemens]

The wealth tax in Zug for the tax period 2024 ranges from 0.425 to 1.9 per thousand. Starting in 2024, newly reduced rates apply to the wealth tax in the canton of Zug. The wealth tax in Zug is progressive, meaning the tax rate increases with the amount of wealth.

It's unclear to me if you pay Wealth Tax in Zug for amounts below 250,000 CHF but I read it as you have to pay 0,425% for the first 250,000 CHF, for the following 250,000 0,850% and above 750,000 1,7% .

There are other Canotones where you pay no Wealth tax from the first 125,000 CHF for single and 250,000CHF for married, if Wealth tax kicks in you pay 0,6% from the amount above

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[jayM]

Useful, thanks a bunch man.

 

[daniels27]

clemens said:
There are other Canotones where you pay no Wealth tax from the first 125,000 CHF for single and 250,000CHF for married, if Wealth tax kicks in you pay 0,6% from the amount above
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It is 200'000 CHF per adult and 100'000 CHF per kid.
https://zg.ch/fr/dam/jcr:857e193c-b...ur Änderung des Steuergesetzes - Internet.pdf
Switzerland currently only knows joint filings of families.

Dividends and interests are taxes. Capital gains are tax free.

 

[clemens]

Yeah man, that is ZUG made a typo above. I said there are other cantons where you don't pay anything up to 125,000 CHF single and 250,000 Married.

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[boomy]

You can save up 125K CHF and don't pay anything from it, that sounds good for me.

 

[Marshal]

jayM said:
I am employed and receive 15,000 CHF per month in salary.
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Welcome to the club of ultra rich by the standard of some people on this forum. Just last week I learned that a salary of 7-8k EUR per month makes you 1% of the richest people in the EU 😎

P.S. Don't take this post seriously, just a little sarcasm 😉

 

[cuno]

In Switzerland this is not much, It's almost average I believe.

 

[JackAlabama]

jayM said:
I've read several threads about withholding tax on this forum.

I would like to know if I need to pay ongoing taxes on the following wealth I accumulate over a 12 ”“ 24 month period.I am deregistering here in Norway where I have always lived.Moving to Switzerland and setting up an XYZ AG where I am employed and receive 15,000 CHF per month in salary.Every month, I then set aside 4,000 CHF in cash as savings in my nightstand drawer.After a year has passed, I have 48,000 CHF lying around, should I continue to pay tax on this money? It is taxed in the form of the salary I receive from the company which withholds and pays taxes on the amount.

Me and the company are, of course, resident in Zug.Can anyone answer this?
Click to expand...

yes bc of wealth tax.

 

[Marshal]

cuno said:
In Switzerland this is not much, It's almost average I believe.
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Not only Switzerland. In any big city/capital located in Western Europe, especially northern part, you need around €7k salary to live somewhat comfortable. With €2-3k monthly salary you will just get by/survive. For instance, in Dublin, just rent will eat around €3-4k per month. And that's a mere 2 bedroom flat (50-60 sq m).

 

[JohnLocke]

boomy said:
You can save up 125K CHF and don't pay anything from it, that sounds good for me.
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Depends on which canton you choose to live.

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[0xDEADBEEF]

Marshal said:
Welcome to the club of ultra rich by the standard of some people on this forum. Just last week I learned that a salary of 7-8k EUR per month makes you 1% of the richest people in the EU 😎

P.S. Don't take this post seriously, just a little sarcasm 😉
Click to expand...

The worst part of the EU is that in most places, you have to earn almost twice that amount just to net that sum. Welcome to the rich and progressive West.

It's even worse when you see it on the map:

https://en.wikipedia.org/wiki/List_of_European_countries_by_average_wage

Last edited: Apr 4, 2024