How much is the wealth tax in Switzerland, below 5M CHF ?

[daniels27]

Let's say you only have 300,000 - 500,000 euros in gold, crypto, or even cash. Then the wealth tax is practically nothing. It probably only starts to matter when you exceed those 5 million CHF - at least that's how I read it and have calculated.

Yes, there it is a fairly progressive tax. Even in Lausanne 500,000 will only cost 2586 per year in taxes. For example Zug has the following rates

a) 0,5 ‰ for the first Fr. 162 000.–
b) 1,0 ‰ for the further Fr. 162 000.–
c) 1,5 ‰ for the further Fr. 162 000.–
d) 2,0 ‰ for over Fr. 486 000.–

This is the 100% rate you pay to the Canton. You pay a further 50 to 60% to the city, 7 to 10% to the church (for Christians) and up to 2% if you are of Zug origin. Hence, the 2,0 ‰ are more like 3,2 ‰ in most cases. Of course Cantons where most people live charge more than that, French and Italian part is most expensive as usual.

https://www.estv.admin.ch/dam/estv/de/dokumente/estv/steuersystem/kantonsblaetter/zg-de.pdfhttps://zg.ch/dam/jcr:3286163b-1522-4b63-92cf-0aecfbd6a1e9/Steuerfuesse 2024-22.1.24.pdf

 

[Konstanz]

Yes, there it is a fairly progressive tax. Even in Lausanne 500,000 will only cost 2586 per year in taxes. For example Zug has the following rates

a) 0,5 ‰ for the first Fr. 162 000.–
b) 1,0 ‰ for the further Fr. 162 000.–
c) 1,5 ‰ for the further Fr. 162 000.–
d) 2,0 ‰ for over Fr. 486 000.–

This is the 100% rate you pay to the Canton. You pay a further 50 to 60% to the city, 7 to 10% to the church (for Christians) and up to 2% if you are of Zug origin. Hence, the 2,0 ‰ are more like 3,2 ‰ in most cases. Of course Cantons where most people live charge more than that, French and Italian part is most expensive as usual.

https://www.estv.admin.ch/dam/estv/de/dokumente/estv/steuersystem/kantonsblaetter/zg-de.pdfhttps://zg.ch/dam/jcr:3286163b-1522-4b63-92cf-0aecfbd6a1e9/Steuerfuesse 2024-22.1.24.pdf

whats a point of siwss, that you have to pay so much for everything?

 

[jafo]

whats a point of siwss, that you have to pay so much for everything?

I'm not sure about all those numbers mentioned above, but I have used their official government website ESTV Steuerrechner to calculate my taxes for over a decade now, and I have had no issues. Just massive refunds.

If you are living off your CHF5M savings, you will pay about CHF12K in taxes but these are offset quite a bit by your expenses too.

Tax calculator source: ESTV Steuerrechner

The security and cleanliness of the city is astounding. The residents, although NOT third-world friendly and accommodating, are among the most honest people I've ever met. I can give plenty of examples, but who knows if we have miscreants lurkers here and I am "voluntarily snitching" on my neighbors and putting them in danger?

All in all, Zug is very safe and most people know each other there. An outsider would be easy to recognize from the crowd.

 

[JohnLocke]

Yes, there it is a fairly progressive tax. Even in Lausanne 500,000 will only cost 2586 per year in taxes.

Wait you have to pay that every year for the same amount, just for having 500K euro in the bank or as a Crypto where you don't make money on ouch

 

[JackAlabama]

Wait you have to pay that every year for the same amount, just for having 500K euro in the bank or as a Crypto where you don't make money on ouch

yes, every year that even on non yielding stuff. If they inflate the asset value more the tax goes up thereafter.

Plus you have to declare every cent you own in whatever money like form - a privacy disaster.
Only way out is the lump sum tax deal which grants privacy.

whats a point of siwss, that you have to pay so much for everything?

well idk if switzerland is worth it these days. Not neutral any more, swings to the left and populism like everywhere in europe.

 

[JohnLocke]

Compared to some of the Scandinavian countries it is still worth it. Just surprising that you pay taxes every year from the same amount. Isn't that unusual for a normal standards? I mean if you have been taxed once from your profits you don't have to pay tax from it again.

 

[jafo]

Compared to some of the Scandinavian countries it is still worth it. Just surprising that you pay taxes every year from the same amount. Isn't that unusual for a normal standards? I mean if you have been taxed once from your profits you don't have to pay tax from it again.

I think maybe this might be helpful: Tax Residence in Switzerland Part 2 - Taxolution Advisory LLC.

Of course, please always consult a Swiss accounting professional.

 

[wellington]

Yes, there it is a fairly progressive tax. Even in Lausanne 500,000 will only cost 2586 per year in taxes. For example Zug has the following rates

a) 0,5 ‰ for the first Fr. 162 000.–
b) 1,0 ‰ for the further Fr. 162 000.–
c) 1,5 ‰ for the further Fr. 162 000.–
d) 2,0 ‰ for over Fr. 486 000.–

This is the 100% rate you pay to the Canton. You pay a further 50 to 60% to the city, 7 to 10% to the church (for Christians) and up to 2% if you are of Zug origin. Hence, the 2,0 ‰ are more like 3,2 ‰ in most cases. Of course Cantons where most people live charge more than that, French and Italian part is most expensive as usual.

https://www.estv.admin.ch/dam/estv/de/dokumente/estv/steuersystem/kantonsblaetter/zg-de.pdfhttps://zg.ch/dam/jcr:3286163b-1522-4b63-92cf-0aecfbd6a1e9/Steuerfuesse 2024-22.1.24.pdf

I once was nearly taken to court over some 50chf payment that hadn’t been made where post got sent around the world for a year

I think that may have been the church fee

yes, every year that even on non yielding stuff. If they inflate the asset value more the tax goes up thereafter.

Plus you have to declare every cent you own in whatever money like form - a privacy disaster.
Only way out is the lump sum tax deal which grants privacy.


well idk if switzerland is worth it these days. Not neutral any more, swings to the left and populism like everywhere in europe.

Plus rule of law isn’t followed

In 2018 I believe they voted to stop bailing out the banks in the future - the government threw that out the window immediately after CS…

I would probably sell up there but can’t be asked to deal with the paperwork.

Switzerland was great but post Covid and now Ukraine it’s a place that I increasingly distrust.

Also a place you now should be willing as we say in Asia to walk away from assets on a whiff as it’s no longer neutral and doesn’t follow its own rule of laws and the foundations of its success.

Likely because unlike WW2 era it’s now important to be on friendly terms with the EU zone whereas before it could pick and choose, it no longer can, its land locked and imports, it also imports s**t loads of labour.

And its exports predominantly are into the Eurozone, the US destroyed its financial industry foundations (privacy) and in return it hosted a systematically important bank that provided jobs and opportunity - that blew up and now the Swiss are paying for it.

In addition the world of OECD reporting it’s openly and willingly signed up for.

In a nut shell I wouldn’t be holding any commodities there let alone anything of value such as financials and property.

 

[jafo]

I think that may have been the church fee

No way I am adding an extra expense to my life. Your accountant probably asked you and then chose what he thought you wanted...
I always choose this:

I have NEVER ran into a professional that was vying for MY benefit. Never ever. Maybe I am unlucky or surrounded by Earth's worst professionals

 

[Rotor]

Wealth taxes are so backwards and unproductive that even in Europe only a handful of countries still levy them.
I never understood anyway what is the point of moving to Switzerland unless you are a UHNWI with a lump sum taxation.

 

[JackAlabama]

Compared to some of the Scandinavian countries it is still worth it. Just surprising that you pay taxes every year from the same amount. Isn't that unusual for a normal standards? I mean if you have been taxed once from your profits you don't have to pay tax from it again.

indeed. the wealth taxes are very low compared to other countries which have them.
But youre correct, its weird to pay tax over and over the same thing (and unfair too) but thats the thing with direct taxation, which should all be abolished by tomorrow.

The wiki article is also interesting:

"
Although, as of 2021, only five of the 36 OECD countries continue to implement the wealth tax on individuals.

The five countries are Colombia, France, Norway, Spain and Switzerland.
"

Wealth taxes are so backwards and unproductive that even in Europe only a handful of countries still levy them.
I never understood anyway what is the point of moving to Switzerland unless you are a UHNWI with a lump sum taxation.

pretty correct its not worth much.

And if you look at the stats it confirms what you say, most immigrants go to Switzerland to get a job (like 90% or so) and only a tiny amount for entrepreneurial activities or whatever the rest is.
And the lump sum deal is of course only open to a tiny minority since you need to pay a multiple of the average salary.

 

[jafo]

The five countries are Colombia, France, Norway, Spain and Switzerland.

The Netherlands pays a wealth tax also. They call it Vermogensbelasting.

Portugal also has it...
https://www.blevinsfranks.com/services/wealth-tax/
Argentina has it... etc etc.

 

[JackAlabama]

I once was nearly taken to court over some 50chf payment that hadn’t been made where post got sent around the world for a year

I think that may have been the church fee

Possible. idk why you should pay this if you just hold a property and are not resident (companies have to pay it as well as the mandatory televison fee, better known as mandatory state propaganda tax). But its a mess anyway and of course they never say no if you pay too much.

Plus rule of law isn’t followed

In 2018 I believe they voted to stop bailing out the banks in the future - the government threw that out the window immediately after CS…

Stuff like that is normal these days similar to a real banana republic but with added negative of no banana growing for easy food options .
There is a lot of stuff going on too that doesn't make the rounds like the banking debacle.
For example, they threw a doctor into psychiatry prison who in april 2020 started to question the covid narrative. Just questioning it regarding treatments and such, not really doing much about it otherwise.
Then was mandatory closing of random businesses. Then freezing assets just because you have the wrong passport whereas a few years ago you were welcomed.

I would probably sell up there but can’t be asked to deal with the paperwork.

Switzerland was great but post Covid and now Ukraine it’s a place that I increasingly distrust.

Also a place you now should be willing as we say in Asia to walk away from assets on a whiff as it’s no longer neutral and doesn’t follow its own rule of laws and the foundations of its success.

Likely because unlike WW2 era it’s now important to be on friendly terms with the EU zone whereas before it could pick and choose, it no longer can, its land locked and imports, it also imports s**t loads of labour.

well it was surrounded by an empire back then too like today, but as you rightfully state, they did not import labour as much and were more self sufficient regarding food etc. So today the foundations is weak and the leadership are pure morons, which are highly paid.
But to operate such a difficult place, you actually need smart leadership, otherwise it will go back very soon to its natural and baseline state, which was one of the poorest countries in europe.

And its exports predominantly are into the Eurozone, the US destroyed its financial industry foundations (privacy) and in return it hosted a systematically important bank that provided jobs and opportunity - that blew up and now the Swiss are paying for it.

In addition the world of OECD reporting it’s openly and willingly signed up for.

In a nut shell I wouldn’t be holding any commodities there let alone anything of value such as financials and property.

The Netherlands pays a wealth tax also. They call it Vermogensbelasting.

will you add this to the wikipedia article?

View attachment 6382

Portugal also has it...
https://www.blevinsfranks.com/services/wealth-tax/
Argentina has it... etc etc.

 

[jafo]

will you add this to the wikipedia article?

Nope... I just know a Dutch accountant who keeps tabs on every country that charges a wealth tax or something similar. He's always WhatsApping me all these countries and their ridiculous taxes.

For example, they threw a doctor into psychiatry prison who in april 2020 started to question the covid narrative. Just questioning it regarding treatments and such, not really doing much about it otherwise.

Just one?

They "offed" Dr. Rashid Buttar too for trying to warn his patients. He was super nice and knowledgeable doctor. COVID Conspiracy Doc Dies; Doc Group Behind Anti-Trans Laws; Aiding Anti-Vax Group

The reason this is odd is because Rashid was in GREAT shape and strong as H3LL! That man did seated military presses in 2006 with 315 lbs for reps.

There was NOTHING wrong with him. He was in absolute perfect health.

BTW, he was the doctor who invented Trans-D-Tropin. That was a transdermal secretagogue that worked out of this world. The FDA shut him down on behalf of their "slave masters"

 

[Rotor]

You can find an up to date map of countries with wealh tax there:
https://taxfoundation.org/data/all/eu/wealth-taxes-europe-2024/

And some headlines like these about Switzerland should at least raise some questions:

https://www.reuters.com/world/europe/swiss-vote-back-13th-month-pension-payment-increase-2024-03-03/
https://www.msn.com/en-gb/money/other/swiss-national-bank-loses-36-billion-in-2023/ar-BB1ji27d
https://www.msn.com/en-gb/money/oth...-to-step-down-at-end-of-september/ar-BB1j9zQ1

 

[jafo]

And some headlines like these about Switzerland should at least raise some questions:

What kind of questions?

 

[Rotor]

In a world drowning in unfunded liabilities, the swiss just voted themselves an extra month of pension per year. I'm glad for them but no words about the financing part. No biggie they can just increase the wealth tax I guess.

As for the SNB having back to back losses in the last 2 years, first it tells a lot about the so called resiliency of the Swiss banking system (especially after the Credit Suisse debacle). Second we all know who is ultimately on the hook for central banks losses, the taxpayers.

So the questions it raises are: Is Switzerland on a slippery slope? Has it become uncompetitive? Does it rely entirely on its (obsolete) reputation?

 

[daniels27]

So the questions it raises are: Is Switzerland on a slippery slope? Has it become uncompetitive? Does it rely entirely on its (obsolete) reputation?

Yes, 100% obsolete. It used to be good back at a time when there were wars around the. Now, the wars are gone and all countries around them have been found in illegal cartels with names such as UN OECD, etc. They all undermine tax and law competition.

And with all countries around Switzerland only against Switzerland but not against each other, how should neutrality work?

Compared to some of the Scandinavian countries it is still worth it. Just surprising that you pay taxes every year from the same amount. Isn't that unusual for a normal standards? I mean if you have been taxed once from your profits you don't have to pay tax from it again.

Switzerland is still much cheaper than EUSSR. If you do not have kids. If you have kids, the 58% in Finland but free child care, free health insurance is the more interesting plan for employees.

Also, the income taxes in Switzerland used to be much cheaper than elsewhere. So, the wealth tax was actually a good model.

 

[JackAlabama]

You can find an up to date map of countries with wealh tax there:
https://taxfoundation.org/data/all/eu/wealth-taxes-europe-2024/

And some headlines like these about Switzerland should at least raise some questions:

https://www.reuters.com/world/europe/swiss-vote-back-13th-month-pension-payment-increase-2024-03-03/
https://www.msn.com/en-gb/money/other/swiss-national-bank-loses-36-billion-in-2023/ar-BB1ji27d
https://www.msn.com/en-gb/money/oth...-to-step-down-at-end-of-september/ar-BB1j9zQ1

why its normal. Also they throw around cash everywhere like theres no end in sight, but dont wanna give their population anything back but let them pay highly inflated prices for mediocre quality.

Once the population understands they can vote themselves free money they will do so until the bitter end

In a world drowning in unfunded liabilities, the swiss just voted themselves an extra month of pension per year. I'm glad for them but no words about the financing part. No biggie they can just increase the wealth tax I guess.

As for the SNB having back to back losses in the last 2 years, first it tells a lot about the so called resiliency of the Swiss banking system (especially after the Credit Suisse debacle). Second we all know who is ultimately on the hook for central banks losses, the taxpayers.

So the questions it raises are: Is Switzerland on a slippery slope? Has it become uncompetitive? Does it rely entirely on its (obsolete) reputation?

Id answer with: Yes, Yes, and a yes.
However, q3 and with a focus on european countries, its still a lot better tho.

 

[Propeller]

So the questions it raises are: Is Switzerland on a slippery slope? Has it become uncompetitive? Does it rely entirely on its (obsolete) reputation?

maybe be, for some people it still make sense to relocate there. Time will show in a few years we will know more.