Tuesday, 11 June 2019

Are you thinking about moving to Switzerland?

Moving to Switzerland is easy if you either have a lot of money or if you plan to open a business there. To move there for work purposes as an employee is hard as the potential employer must first hire a Swiss national. If a Swiss national is not available the 2nd choice is given to citizens of European Union countries (Switzerland is not a member of EU). Thousands of Europeans work in Switzerland. So if you are not European then the chance of getting a work permit is extremely low.
However there is a business class visa that is easier to obtain if you can prove that it is a solid business idea. The difference between a Swiss business visa compared to most other countries is that you are permitted to work in your own business. In many countries you can open a business but cannot work in it yourself if you are not a permanent resident. With this visa you can stay for 5 years (you must renew it every year) and after that you can apply for another type of visa which gives you permanent residency for another 5 years. After 10 years in Switzerland you can apply for citizenship.
Please note that you will pay business and personal income tax in Switzerland (up to 40% for personal income of over 400,000 Franc, which is about $560,000 Canadian). VAT is also about 7%. There is no capital gain tax. This tax rate is a lot lower than many other countries.
Switzerland is known as a tax haven country but only for the wealthy. There is a type of visa for wealthy individuals. They pay about 10% tax per year (depending on their lifestyle) as long as their income is generated outside Switzerland, they pay no additional tax which can save them a lot of money. This tax rate of 10% on personal income is a lot lower than other countries that charge up to 56% tax on personal income. Also as Switzerland has double tax treaty with most countries, this means the wealthy can pay about 10% tax here and avoid paying tax in their home country. However this visa for wealthy individuals is not good for people who are not wealthy as Switzerland allocates a fictional income of 400,000 Franc (about $560,000 Canadian for you) as your minimum income. Meaning you pay this tax for income of 400,000 franc even if your income is lower than that.
If you are not a millionaire then it is best to apply for a business visa which taxes you based on your annual income. Tax rates in Switzerland differ depending on where you live.

No comments:

Post a Comment