Welcome to BuyAssociation.co.uk

Switzerland: Switzerland: A Little Less Taxing - Camilla Mabbott, Aylesford International

A Little Less Taxing

For many women, the decadence of chocolate is the most forbidden luxury in the world. A good watch is not only a status symbol but often an investment for the generation to come. But the prospect of paying less tax is priceless. With a brutal deficit-cutting budget in the UK and many so-called tax-havens cracking down on their domicile criteria, Switzerland is becoming an even more appealing place to reside.

A common myth is that you need to be an oil baron or rock star to quality for residency status in Switzerland. Although it is true you do need to be moderately wealthy, not as much you would think; plus the authorities are making the process even easier for E.U. citizens to become residents. Income tax rarely exceeds 25% and estate tax (inheritance tax) has now been abolished in most Cantons compared to the UK’s 40%. It gets better. There isn’t any Capital Gains Tax, except for some professional equity and real estate traders.

In order to achieve residential status, you need to acquire a B Permit (permis de séjour). There are various ways to apply and one such way is through a Swiss fiduciary, particularly if you are ultimately looking to purchase a property. Law firms such as Akin Gump in Geneva have a specialist team of tax lawyers to help navigate through the process and advise you on the best way to structure a move to Switzerland.

The law has recently changed and now when you have a B Permit you can buy a property in the Canton of domicile (in the case of EU nationals) without restrictions. However, certain mountain ski resorts do have more relaxed legislation for non-resident EU nationals purchasing property – all in the spirit of tourism. Moving duties and land tax do apply and this is normally around 4%, depending on the Canton.

The only problem is that there is a shortage of property to buy, largely because of the size and urbanisation of the country, but also due to the European culture of renting rather than purchasing in main cities like Geneva, Zurich and Lausanne. Prices have reportedly doubled in recent years and demand is exceeding supply. Aylesford International often doesn’t have a chance to publicise chalets in Verbier or apartments in Geneva on the open market due to the ongoing requests for these types of property, especially as only a few chalets are for sale to EU foreigners.

Switzerland might not be as glamorous as Monaco or have super-sleuth Jersey detective Bergerac cracking crimes, but I think you’ll find it is surprisingly friendly, full of culture and with the highest per capita number of Nobel Prizes in the world, pretty smart. The returns from property investment are a sure thing and let’s face it, living prices might be on a par with Tokyo, Paris and London, but you’ll pay less tax and you get to eat as much chocolate as you like after a stroll in the Alps.

For more specific tax and legal questions, please contact Jonathan Ivinson at Akin Gump in Geneva (tel + 41 22 787 4035 or Email jivinson@AKINGUMP.com

Camilla Mabbott

Camilla Mabbott is a Director at property consultants Aylesford International. www.aylesford.com

More pages

Page 1: A Little Less Taxing

www.holidaylettings.co.uk online advertising for home owners abroad

Discounted Airport Parking - available across the UK

Reserve your overseas currency online - for a high street beating rate!

Find your perfect holiday home - over 250,000 homes worldwide to chose from