Bern To Vote On Expat Tax Deal

By Editorial 19 September, 2012

The Swiss canton of Bern will vote on whether to keep the tax deal currently available for wealthy expatriates in a referendum scheduled for September 23.

Under the current regime, special tax deals are available for wealthy immigrants to Switzerland, on condition that their income is above a certain amount and provided they do not intend to work in Switzerland. Immigrants eligible for such deals may opt to become taxable on their spending patterns, and not on their income and wealth. Potentially, this may result in a lower effective tax rate for these immigrants.

Some Swiss cantons have pushed for an abolition of these special tax regimes over the past few years. Zürich, Schaffenhausen, and Appenzell have already abolished them, and a similar initiative at national level is also under way.

It is estimated that only 233 households may be targeted by this referendum. Overall Switzerland granted around 5,500 such tax deals in 2010, with over 60% of them in the French-speaking area.

Tags: Individuals | Expatriates | Wealth | Tax | Investment | Entertainers | Sportsmen | Switzerland |


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