Banking, Money and Taxes in Switzerland
Your money is very welcome in Switzerland. There are over 600 banks in Switzerland and opening an account is quick and easy; all you require is a passport, proof of address and either an employment contract or proof of income. Accounts cannot be opened anonymously, although bank-client confidentiality rules are still strictly observed. A minimum initial deposit will be required; the amount varies according to the bank.
Customer service levels are high and banking charges extremely low. Special salary accounts exist that pay a higher rate of interest in exchange for fewer services. Wealthy clients might use a private bank in one of the smaller cantons.
Cash is used more frequently than credit cards, and cheques for day-to-day transactions. The most popular credit card is the Euro Card, with monthly charges of around CHF50.
Expats living in Switzerland for more than 180 days per year are subject to personal income tax on their worldwide income. However, thanks to double taxation treaties with over 50 countries, tax paid in one country can be deducted from the other. Tax rates are low and seldom exceed 30 percent. Foreign workers who are not residents will have their tax deducted from the salaries by their employers.
Customer service levels are high and banking charges extremely low. Special salary accounts exist that pay a higher rate of interest in exchange for fewer services. Wealthy clients might use a private bank in one of the smaller cantons.Cash is used more frequently than credit cards, and cheques for day-to-day transactions. The most popular credit card is the Euro Card, with monthly charges of around CHF50.
Expats living in Switzerland for more than 180 days per year are subject to personal income tax on their worldwide income. However, thanks to double taxation treaties with over 50 countries, tax paid in one country can be deducted from the other. Tax rates are low and seldom exceed 30 percent. Foreign workers who are not residents will have their tax deducted from the salaries by their employers.
Expats retiring to Switzerland, and not engaging in income producing work, can opt for lump-sum taxation, the amount of which is negotiated based on one’s standard of living.
