Switzerland - request for advices and info

[eklia]

Hi all,

I'm considering moving to Switzerland, specifically to the Ticino area.

Could someone please explain how personal and corporate taxes work?

If I understand correctly, one of the most efficient structures for running a business is to have an SA/AG (trading company) owned by a holding company.
In this setup, the trading company pays relatively low taxes on profits (e.g., around 11–12% in cantons like Zug). Profits can then be distributed as dividends to the holding company, typically taxed at about 1%. The holding company can then reinvest the capital in stocks, bonds, crypto, real estate, etc.

On the personal side, it seems possible to receive a monthly salary , for example, CHF 10,000 , with a tax rate of roughly 30%.
Capital gains on personal investments should generally be tax-free in Switzerland.

Following this approach, it seems possible to live in Switzerland while keeping the overall tax burden under 15–20%.

Could someone confirm whether this structure is correct and legal?
Also, is it allowed to own offshore companies while living in Switzerland? And how are dividends from offshore entities treated for tax purposes?

I’d really appreciate any clarifications, insights, or corrections if I’ve misunderstood something.


Thank you in advance!

 

[SCHLOSSFINANZ]

no offshore companies allowed in CH. Pick a low tax Canton like Schwyz.

 

[eklia]

no offshore companies allowed in CH. Pick a low tax Canton like Schwyz.

Thank you!

Are the other things I wrote correct?
How to keep low taxation in Switzerland?

 

[SCHLOSSFINANZ]

you can't keep taxation "low". What you calculated is the lowest possible amount.

 

[daniels27]

On the personal side, it seems possible to receive a monthly salary , for example, CHF 10,000 , with a tax rate of roughly 30%.

You can hire you at 40% at a 8'000 CHF monthly base salary, effectively 3'200 CHF per month. If you play the deductions game well enough and live in Zug etc., you won't pay a lot of income taxes. But bear in mind that wealth taxes still kick in.

The holding company should be in a country with which Switzerland had a double taxation agreeement reducing withholding taxes to 0% if possible.

Check ahaed of time what the goodwill of your company is / will be. If you relocate an existing company with goodwill, the Swiss will give you a tax-free amount equal to the goodwill which you can deduct the following 10 years. Upon emigration, any existing goodwill will be subject to corporate tax. It may be better to move in an existing company, have a local director from start and then when you move out, you slowly cease operations instead of actually moving out. Really depends on the business nature etc. but this would be how to best do it.

You also pay AHV on your salary. You cannot take out any money upon emigration, but you probably will get some basic retirement money depending how long you were in Switzerland. There are other social security contributions (pillar 2 and 3), which can be refunded upon departure.

 

[myshufflemix]

Find a good tax consultant or accountant that is able to help you with all of it, there could be more tax benefits than what is mentioned here.

 

[eklia]

If I understood right, the holding company could be in Luxembourg

 

[daniels27]

If I understood right, the holding company could be in Luxembourg

Yes. There are quite some places that would work. Liechtenstein, Hong Kong, etc.

 

[eklia]

Yes. There are quite some places that would work. Liechtenstein, Hong Kong, etc.

How many taxes should pay the Luxembourg company on dividends from switzerland?

 

[SCHLOSSFINANZ]

5%. Again get proper tax advice

 

[Marzio]

the holding company could be in Luxembourg

Be aware that to avoid 35% Swiss withholding taxes on dividends your holding company needs to have strong substance meaning director, staff and office.

This is because they don't like money to leave Switzerland so they will check if your holding company is a real company and not some artificial entity that's been put in place just to avoid Swiss withholding taxes.

 

[SCHLOSSFINANZ]

second that. Liechtenstein is a better option.

 

[eklia]

so guys do you recommend to avoid Switzerland at this point?
Please argue your opinions.

 

[SCHLOSSFINANZ]

incorporate a Liechtenstein AG, move to Monaco. Thats the cheapest option ever. Make use of Liechtenstien Monaco DTT.

 

[JustAnotherNomad]

incorporate a Liechtenstein AG, move to Monaco. Thats the cheapest option ever. Make use of Liechtenstien Monaco DTT.

Doesn't Liechtenstein have 10% tax and you need a local director? Why would you do that if you can just run most offshore companies tax free from Monaco?

 

[SCHLOSSFINANZ]

because its an EEA structure much better reputation than using BVI. And Liechtenstein has no capital gains tax in the company. So you upstream the profits tax free to Monaco. Its a bullet proof setup.

 

[JustAnotherNomad]

But you still pay 10% tax in Liechtenstein?
You can use a US LLC and pay no tax. You could probably also use a partnership tax free. I don't really see why you would want to pay 10% when you could very easily pay nothing at all.

 

[Marzio]

do you recommend to avoid Switzerland at this point?

Not necessarily, it depends why you chose Switzerland in the first place.

 

[daniels27]

How about Hong Kong instead of either of both Liechtenstein and Monaco?

 

[eklia]

Unfortunately I need to run business through EU companies, my clients don’t allow to work with offshore companies.

Since I’m tired to run business using EMI because there is no stability, the ban is always close, etc; I was considering to move to Switzerland and pay few taxes.
At least I can use primary banks, live in a good and safe place, etc.

Currently I am tax free (or almost) but I am using EMIs.