|Personal taxes in Switzerland|
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Personal taxes are very reasonable in Switzerland. Despite the complex federalistic
political structure, the Swiss tax system is very simple and the fiscal administration
Lump sum taxation
Foreigners with no activity (that is, retired) can choose to pay a
lump sum annual tax, which is calculated on their rental payments (or the rental
value of their house or apartment) with no relation to their real income or
lump sum taxation ...
You pay taxes where you live, and these taxes
are divided between the the federal government, the canton and the city (about a
third at each level). There are wide variations in tax rates between cantons and
even cities, and your overall tax bill will very much depend on where you live,
even though it rarely exceeds 30%.
Swiss cantons levy a small wealth tax of maximum 1% of your net assets
(unless you qualify for the lump sum
taxation). This is the oldest tax in the country and never assumes the retaliatory
significance that it has in some countries.
Several cantons levy a small estate tax (i.e.
inheritance tax) of about 7% between father and son, but this is being phased
out by popular demand.
Capital gain tax
Switzerland does not apply capital gain taxes, except for professional equity
and real estate traders.