If Switzerland’s lifestyle doesn’t lure you in, perhaps the taxes will.
February 12, 2016
Switzerland is a magnet for the wealthy. It boils down to the high standard of living (typically in the top 3 highest in the Human Development Report), Davos (home to the economic forum), the exceptional ski resorts (where many of the rich and famous have chalets), the fashion items, the exclusive hotels and restaurants amidst breathtaking scenery…and of course, the taxes.
Foreigners who took up Swiss residency like Swedish Ikea founder, Shania Twain, Tina Turner and the Duchess of York (who is planning to take up residency here this year) were likely not only attracted by the high standard of living. They also likely have some good financial advisors.
So perhaps, it’s time to follow in their footsteps? The tax rate in Switzerland is known to be highly favourable and things aren’t changing. According to KPMG’s latest interactive map of Swiss taxes (2015), the corporate tax rate falls as low as 12.32% (in canton Lucerne) and the individual income tax can be as low as 22.86% (in nearby canton Zug). Just be aware that there is a lump sum taxation in some cantons based on expenditure, for those who intend to retire (see second link below).
The moral of the story is that even if you aren’t in love with the outdoors, chocolates or watches, if you’re wanting to enjoy mountains of wealth, this is the place.