Taxes in switzerland for non residents

Non-residents bank accounts in switzerland are completly tax-free. This means, there are no income taxes, no capital gain taxes, no real estate taxes, no inheritance taxes plus a bonus of your privacy.

Swiss residents are subjected to income and net wealth taxes. Non-residents as long as you do not derive any income inside switzerland, you are free from swiss taxes. Some of the examples which bind you for swiss taxes are

- Real Estate Income
- Income from business establishments in switzerland
- Interest on mortgages
- Pensions relating to former employment in switzerland

There is a special tax called WITHOLDING TAX (35%) levied on dividends, bank loans, and certain insurance payments. If you live in foreign country, and you get interest from the bank deposits, then this tax is levied on you. Note that, only your 35% of interest gained from deposits is subjected to withholding tax and not your capital. This is because you are generating money inside switzerland. However royalties, swiss annuities are fully exempted from swiss witholding taxes.

More tax related information can be found on this website http://www.taxation.ch

'Tax evasion' is a serious crime considered in many countries. It all depends on how properly you plan your taxes. 'Tax Avoidance' , 'Tax Evasion', 'Tax cuts' are very different terms, have different meanings with one another. 'Tax avoidance' is perfectly legal, while 'evasion' is a crime. Tax laws vary from country to country and laws are subjected to change anytime. We highly recommend you to consult and ask advice from tax authrorities or attorneys, before you properly structure tax planning. It is very important that you use your offshore bank accounts for legitimate purposes. It is fully LEGAL to own your private bank account.

If you are a U.S citizen, the IRS will ask you to file Treasury Form 90.22.1, if you own a offshore or foreign bank account. You might need to report to IRS if your foreign bank account value is more than 10'000 USD annually. Also as per new IRS code, there is no need to report your swiss annuities. If you fail to report your account to IRS it may constitute 'tax evasion' which is a serious crime. There is no need to file this form if your savings in foreign account is less than US$10'000 annually. There is no harm in honestly honestly filing your taxes to IRS. You might also be aware that any attempt to defeat taxes constitutes a crime. You may wonder if IRS might conduct an audit to your foreign account. Well, to speak the truth, IRS is on hunt to people who DONT report their foreign account, than people who report it honestly. More information is available on I.R.S Website.