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Moving To Switzerland. Best Offshore Company To Open or Structure to use?

Velar

Velar

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Jan 15, 2021
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#1
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Hi Offshore Corp Talk members.

So in the next few years, I'll be moving to Switzerland and become a resident (by marrying my partner). I want to know what's the best way to go about opening an offshore business once I move.

I'm wondering:

1. Would it be a good idea to set up an offshore company and pay myself a salary (/income) from it? Then pay personal income tax in Switzerland?
2. Is it legal to operate an offshore business outside of Switzerland and be paid from it? - I don't want to start a Swiss business (too expensive/complex).
3. Is there a structure that would be legal and reduce my headache that you can think of?

Basically, I want to avoid the complexity of starting a Swiss business, but remain 100% legally compliant on the tax side of things.

I appreciate your responses in advance!
 
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#2
If you want to avoid complexity why do you move to Switzerland?

I don't believe it is anytime more complex to operate a Swiss GmBh or AG then anywhere else in Europe. I also think your situation is depending on the canton in Switzerland you are moving to. Some have very attractive tax rules both personal and corporate.
 
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#3
lavel said:
If you want to avoid complexity why do you move to Switzerland?

I don't believe it is anytime more complex to operate a Swiss GmBh or AG then anywhere else in Europe. I also think your situation is depending on the canton in Switzerland you are moving to. Some have very attractive tax rules both personal and corporate.
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Hi Lavel,

I'd be moving to the Groubunden canton. - And the reason being, which I probably should have said, is because to start a GmBh, you need to deposit 20,000CHF. Starting an offshore business would be far more cost-effective for me.
 
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#9
If you are HNW than go for the lump-sum taxation in Switzerland that will be best option . (I attach the Detail Below)

If you find Lump sum taxation is too costly.
Then Register Company in any tax free country like Belize, Cayman Island, UAE, BVI.
Do not transfer any money to Switzerland using wire transfer.
Use Company Visa/Master Card for your daily money requirement .
 

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#10
If you are into setting up a legit new live in Switzerland I would avoid to start anything offshore. If you don't care and your only reason to live in Switzerland is a girl then you may be fine to start from the very beginning with some "shady biz setup".
 
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#11
hirenshukla2017 said:
If you are HNW than go for the lump-sum taxation in Switzerland that will be best option . (I attach the Detail Below)

If you find Lump sum taxation is too costly.
Then Register Company in any tax free country like Belize, Cayman Island, UAE, BVI.
Do not transfer any money to Switzerland using wire transfer.
Use Company Visa/Master Card for your daily money requirement .
Click to expand...
Why can't someone transfer money to Switzerland using wire transfer ??
 
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#14
hirenshukla2017 said:
If you are HNW than go for the lump-sum taxation in Switzerland that will be best option . (I attach the Detail Below)

If you find Lump sum taxation is too costly.
Then Register Company in any tax free country like Belize, Cayman Island, UAE, BVI.
Do not transfer any money to Switzerland using wire transfer.
Use Company Visa/Master Card for your daily money requirement .
Click to expand...
You seem to ignore Switzerland is receiving the Automatic Exchange of Information for beneficial owners resident in the country and the individual taxation is on worldwide income. The tax office will anyway ask you for a proof of income source as soon as you buy a car or anything a bit relevant. I also assume a HNW wouldn't have problems anticipating the capital for opening a company in Switzerland.

The only real difference in cost between running a company incorporated offshore and one incorporated in Switzerland is the different requirement for the paid up capital. Which technically is not even a cost, but yes you need to have that capital. Tax-wise if you run the company from Switzerland it will be subject to Swiss taxes according to CFC rules, so I am not really sure that will be easier to run in the end...

You may save more in taxes by changing the Village or Canton where you plan to live in Switzerland.
 
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#15
Not sure if this works, but maybe worth a thought:

Assuming you are not a HNW individual and that you're looking to keep your costs low - maybe set up your company somewhere offshore in a jurisdiction with low reporting requirements and just register a Branch office in Switzerland. Normally a Branch office will get a sort of company number from the canton and I believe that the branch can even register for CH VAT. That Branch office does not need share capital and if you are going to be a Swiss resident (ideally with a B Permit that I think you can get as a spouse of a CH citizen), I'd say you can most probably open a bank account for that Branch. The Offshore HQ would essentially just be your Legal Liability cover, contract signing etc - but all operations/transactions would be out of your Branch office. Once you get to a sufficient income level you can look to convert it to a local CH GmbH/SARL etc.
 
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#17
Velar said:
I plan to run a bootstrapped company, so I'm not being cheap, but thoughtful about expenditure. I don't have the capital some people have at hand. If you're unable to suggest something, it's no problem - I appreciate your response anyway! :)
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If you care about cost and expediture, do not move to Switzerland as it is bloodily costly just to survive ;)

You could borrow the 20k (this is low by Swiss standards operating what you want to do, most form an AG and put down the 100k like its peanuts) from friends or family and after incorporation pay it right back. You will be free to withdraw.
However, banks often play hard and give you hard time for account opening and the process is complex like life in general.
Best you go with a good lawyer or fiduciary.
 
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#18
hirenshukla2017 said:
It is taxable .
You have to pay tax ,If you bring money to your account .(Dividend ,profit or salary in any form)
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You gotta pay always, even from an employer abroad paid to an account abroad if you have swiss domicile.
And with crs they figure that out but they will ask you way before anyway.
Better to have it actually paid to a swiss account as these are covered by bank secrecy laws for swiss residents, still.
 
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#20
I see bigger problem:
"Basically, I want to avoid the complexity" "(by marrying my partner)".
 
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