How to avoid wealth tax in Switzerland?

[Martin Everson]

So which serious tax residency options with little time spent in the country are we left with?

You do have Gibraltar Category 2 residency.

 

[JohnnyDoe]

Can’t you just pick a tropical island and pay zero taxes legally and hassle-free?

 

[Martin Everson]

Can’t you just pick a tropical island and pay zero taxes legally and hassle-free?

You mean like me .

Great idea if you like a slower lifestyle. Island living is not for everyone however.

 

[JackAlabama]

You forgot Monaco which is in the middle, with the possibility of living there for 90 days without having to be a tax resident.

No but seriously, this is getting hilarious! The goal was to live in Switzerland, not to find a way to have to stay there as little as possible!! X'D

Finally, if I have to rent 4 permanent homes at an average of 5k€ per month, it's the same as paying a lump sum...



On paper at least, I don't see any country that have as many good features as this one. I think I'll end up paying a lump sum. My wife says I'm an extremist...



Thank you so much !



One story for the banker, another for the State. And yes I have a low profile when I spend 6k€/month for the moment when I have 30m€, it's just 0,24% per year...

spending 6k / month in France is def not a low profile if average Joe makes like 2k/month.

 

[JohnnyDoe]

You mean like me .

Great idea if you like a slower lifestyle. Island living is not for everyone however.

Slower? Perhaps outside if you sell conch on the street, otherwise life can be as fast and busy as you want it to be if you are self employed

 

[backpacker]

I followed for a while the Paraguay route but even if you get the cedula you'll have to stay there for 120 days.

Do not forget that even the if you find a country which gives you a tax residency certificate with zero-presence-requirement, it is highly likely that the other country were you want to apply it for DTA reasons will not accept it.

 

[jafo]

2/ We know very well where your taxes are: in the pockets of friends/clients/bureaucrats of the State, which deprives us more and more of everything, and gives us back less and less.

Finally, one smart person who understands reality! It's shocking to me we have so many cheerleaders of the State here, which makes me wonder if they are not controlled opposition and have infiltrated this forum.

Hello,

I hesitate to move to Switzerland, on the French or Italian side, because all the criteria suit me except one... Wealth tax!

I calculated that in Geneva I will have to pay 300k€/year, and in Lugano "only" 130k€/year. I tried to do the calculations with the lump-sum tax but it doesn't help me at all because I don't work, but live only thanks to a capital (entirely in Bitcoin).

Apart from minimizing my fortune (Bitcoins are easy to hide) to only €2m (in case Bitcoin continues to rise) and paying only €8,000/year, I don't see how to avoid it, and it's going to be a problem for me if I want to buy a home for €4m for exemple : where will my difference come from? The State would quickly understand the attempt at concealment...

I've heard that the Swiss may be able to deduct their debts from their wealth, but how do you get into debt to the tune of tens of millions of euros?! In addition, I will be forced to leave my Bitcoins as collateral at the bank and therefore will be at their mercy...

If you have any ideas, thank you in advance!

Have you found a solution to this?

 

[wellington]

Hello,

I hesitate to move to Switzerland, on the French or Italian side, because all the criteria suit me except one... Wealth tax!

I calculated that in Geneva I will have to pay 300k€/year, and in Lugano "only" 130k€/year. I tried to do the calculations with the lump-sum tax but it doesn't help me at all because I don't work, but live only thanks to a capital (entirely in Bitcoin).

Apart from minimizing my fortune (Bitcoins are easy to hide) to only €2m (in case Bitcoin continues to rise) and paying only €8,000/year, I don't see how to avoid it, and it's going to be a problem for me if I want to buy a home for €4m for exemple : where will my difference come from? The State would quickly understand the attempt at concealment...

I've heard that the Swiss may be able to deduct their debts from their wealth, but how do you get into debt to the tune of tens of millions of euros?! In addition, I will be forced to leave my Bitcoins as collateral at the bank and therefore will be at their mercy...

If you have any ideas, thank you in advance!

I pay wealth tax (Italian side) based on what my accountant said i was worth.

I never corrected him, he never asked, and that was the end of it, it's roughly 0.05% or something silly.
In the grand scheme of things it's not much, Non-Resident, Non-Citizen.

Finally, one smart person who understands reality! It's shocking to me we have so many cheerleaders of the State here, which makes me wonder if they are not controlled opposition and have infiltrated this forum.


Have you found a solution to this?

Crypto is tax free i believe in switzerland, will have to ask a friend but pretty sure that's the case... again, in my position, the accountant told me i was worth x, i never argued or said anything different, there was a twinkle in his eye and it was a nice amount for the canton so everyone is happy.

Ergo - let your accountant deal with it...

 

[jafo]

I pay wealth tax (Italian side) based on what my accountant said i was worth.

I never corrected him, he never asked, and that was the end of it, it's roughly 0.05% or something silly.
In the grand scheme of things it's not much, Non-Resident, Non-Citizen.


Crypto is tax free i believe in switzerland, will have to ask a friend but pretty sure that's the case... again, in my position, the accountant told me i was worth x, i never argued or said anything different, there was a twinkle in his eye and it was a nice amount for the canton so everyone is happy.

Ergo - let your accountant deal with it...

"Let the accountant (or even lawyer) deal with it?"

If I get kidnapped (they call it sentenced and remanded to prison) will the accountant or lawyer own up to their mistake and take my place and pay the fine?

Not being a smart a*s. Just want to learn how others reconcile with this reality...

 

[MiddleEuroAsia]

"Let the accountant (or even lawyer) deal with it?"

If I get kidnapped (they call it sentenced and remanded to prison) will the accountant or lawyer own up to their mistake and take my place and pay the fine?

Not being a smart ***. Just want to learn how others reconcile with this reality...

ok "reality".
What exactly do you want to hear? the truth?, ok, you either live in a tax free country or in a territorial tax country whom: 1 - tax office doesn't give a f**k (short term living) 2- manage your offshore assets, offshore, that means that all your oversees assets are being managed by a team of people offshore and key managing decisions are done offshore ( and document all of that) (long term living).
Being a perpetual traveler is a thing from the past, almost all countries want to know your "base" or to be more specific, your "tax base" specially for banks.

That's the reality.

 

[jafo]

ok "reality".
What exactly do you want to hear? the truth?, ok, you either live in a tax free country or in a territorial tax country whom: 1 - tax office doesn't give a **** (short term living) 2- manage your offshore assets, offshore, that means that all your oversees assets are being managed by a team of people offshore and key managing decisions are done offshore ( and document all of that) (long term living).
Being a perpetual traveler is a thing from the past, almost all countries want to know your "base" or to be more specific, your "tax base" specially for banks.

That's the reality.

I gave you a like, but I've been traveling since 2009 after a huge windfall. Staying at hotels or executive apartments. This is a fact! Credit card receipts and all. My home country is an island I left in 1980 at 15 when I went abroad to prep school/college. Never returned there. My passports are European (my parents were European and the island I was born on used to be a territory (colonialism), so I kept my parent's passports and the colonial passport. They are NOT the same). This is my reality. There isn't a place in the world, except Monaco, I have found where I wanted to settle and buy a home. Monaco will allow me but I have to spend 183 days there. That is never going to happen. I love my life traveling the world too much to be stuck somewhere. What would you do if you were me?

 

[Don]

I gave you a like, but I've been traveling since 2009 after a huge windfall. Staying at hotels or executive apartments. This is a fact! Credit card receipts and all. My home country is an island I left in 1980 at 15 when I went abroad to prep school/college. Never returned there. My passports are European (my parents were European and the island I was born on used to be a territory (colonialism), so I kept my parent's passports and the colonial passport. They are NOT the same). This is my reality. There isn't a place in the world, except Monaco, I have found where I wanted to settle and buy a home. Monaco will allow me but I have to spend 183 days there. That is never going to happen. I love my life traveling the world too much to be stuck somewhere. What would you do if you were me?

Why not park your assets as a share capital contribution to a company in a juristiction with no income tax or wealth taxes? Also for example Estonia could be interesting
You can inject your crypto to a company, and then live on capital reductions (which is not considered income or taxed).
You only pay tax when the company distributes dividends. Spend maybe 1 day per year there, yet keep tax residency.

 

[backpacker]

Crypto is tax free i believe in switzerland, will have to ask a friend but pretty sure that's the case..

It depends:

• If you trade for a living (professional trader) capital gains from crypto will be taxed.
• If you do it as a private individual (limited turnover, only a few trades per year), capital gains are not taxed. However, wealth taxation is still applicable.

 

[jafo]

Why not park your assets as a share capital contribution to a company in a juristiction with no income tax or wealth taxes?

Which jurisdiction would you do if you were me?

 

[Don]

Which jurisdiction would you do if you were me?

I believe you can get the best results in tax planning/asset protection/personal freedom/wealth growth when you combine multiple jurisdictions, and its also important to consider how your structures support your lifestyle.