Category Archives: Finance & taxes

Swiss Wealth Tax

Will you be affected? One question many people have about moving to Switzerland is whether they will be affected by the wealth tax or not.  The short answer is: you may be affected, but the impact isn’t likely to be very big.

A lot of people get worked up when they hear about the wealth tax, but unless you have very substantial wealth, the amount isn’t likely to be enough to be a dealbreaker one way or another for making a move.  As a rule of thumb, if you still need to earn an income to survive (as opposed to living on the passive income generated by your investments), you shouldn’t feel the impact of the wealth tax.  You need to have a very significant amount of wealth before this tax becomes a serious consideration in your calculations, and if you have that kind of wealth, you probably have a financial advisor who is looking out for any potential red flags.

Example wealth tax levels As an example, with CHF250’000 in wealth, you wouldn’t pay any wealth tax, and with CHF500’000 in wealth would pay about CHF350 a year; CHF1’000’000 would pay about CHF1’750 a year and someone with CHF5’000’000 would pay around 13’800. Here’s a presentation that gives a reasonable overview of Swiss taxes, in English. Note that slide 11, which I’ve used to calculate the wealth tax examples above, is quoted permille (‰), not percent (%).

 

Taxes for US Citizens living in Switzerland

Your income over 120’000 is treated exactly like your income under CHF120’000 — your tax (‘quellensteuer’) will be withheld by your employer each month at a rate determined by your monthly pay. Hereisthetable Read more »

Swiss Withholding Tax (Quellensteuer, impôt à la source)

How Calculated

The amount of tax is determined based on the quellensteuer tables for your canton — your local HR department has no say in how much they withhold.In theory, it’s all supposed to balanceout,butin Read more »

FAQ: A brief guide to salaries in Switzerland

How much should you be paid in Switzerland? This is often a tough question to answer, because the Swiss are notoriously secretive about their salaries. Unlike many countries, salary ranges or bands arerarelypublishedin Read more »