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| Relocate
to Switzerland: A Tax Haven at the Heart of Europe |
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| If you’re wealthy, you have any
number of options about where to live, all of which have their own particular
charm. Some places have a wonderful location; some have favorable tax
laws; some have a welcoming and accommodating culture. But the fact of
the matter is this: Switzerland is already what it would be like if wealthy
people could design their own country. It has everything: beautiful countryside,
sophisticated cities, any number of sport and recreation activities, political
and economic stability, a pleasant and conservative culture, a very low
crime rate, excellent public services and a centuries-long tradition of
hospitality. The Swiss tradition of discretion and respectability is particularly
important for the wealthy and famous individuals who choose to make Switzerland
their home. And furthermore, Swiss tax and immigration laws allow for foreign-born
wealthy people to keep a larger share of their own money while experiencing
the many joys of living in Switzerland. |
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| The financial advantages are important
enough, but Switzerland is perhaps unique among countries for offering
this sensitivity towards wealth in an incomparably refined setting. |
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| Located at the
heart of Europe, Switzerland offers living, business, travel and recreation
opportunities that are second to none, and boasts a tradition of hospitality
towards guests from all over the world. Travel to and within Switzerland
is as easy as possible due to its renowned infrastructure – there’s a good
reason why “runs like a Swiss train” is a metaphor for reliability
and dependability. Every public service is top-of-the-line, from the municipal
utilities, roads, schools and health care to the garbage collection and
city sanitation. To foreigners, this is often the most surprising aspect
of life in Switzerland – the amount of care that goes into maintaining
the country’s impeccable appearance. Early each morning, teams of orange-clad
workers fan out on city streets and leave them looking completely renewed. |
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| Swiss cities span the entire spectrum,
from cosmopolitan, global addresses like Geneva, Berne, Zürich and
Lugano to traditional hamlets where winemakers still bring the grapes in
by hand. In fact, a world-wide survey of living quality in cities
(Mercer Human Resources 2004) ranks Zürich and Geneva as the
best two cities in the world in which to live, and the Swiss capital, Berne,
ties for fifth place overall. |
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| All of this versatility and opportunity
is easily accessible within a remarkably compact border. |
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| It is difficult to find a place
more than 90 minutes away from one of the three main airports – Geneva,
Basel or Zürich – and the network of intra-city public transportation
on buses and trams meshes seamlessly with the national rail system, which
is unrivalled in Europe. Of course, if you wish to drive, the road and
highway system is excellent as well. But transportation is only a
minor part of the story. One has to have somewhere worthwhile to
go, and this is where Switzerland truly shines. |
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| If you are a skier, snowboarder,
or enjoy any kind of alpine activity, then you already know about Switzerland
as the absolute nexus of world-class skiing – other ski resorts are judged
by how closely they simulate the Swiss experience. But the sheer variety
of Swiss recreational opportunities often goes overlooked. Sailing, rowing
and other water sports are extremely popular on the many pristine lakes
and rivers, and the quality of competition can be quite high. Switzerland’s
Team Alinghi is currently preparing to defend the America’s Cup sailing
title they won in 2003. |
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| You would be hard-pressed to
find another compact space with the variety of climates and locales
that Switzerland has on offer – an hour’s drive will take you from the
central lake district to the mountains; an hour in another direction can
bring you to hiking trails, rally-driving tracks, horse trails, private
airports for gliders or sailplanes, or just about any other resource or
activity you can imagine. |
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| About the only thing Switzerland
lacks is a tropical beach – but remember, the airport is probably less
than an hour away! One more aspect that cannot really be quantified
is the incredible natural beauty of the Swiss landscape – the mountains
have their peculiar majesty, the lakes and rivers have a tranquil beauty,
but what one really notices when traveling through the country (particularly
by train) is the gently rolling farmland that simply has a different
feel to it than the broad expanses of other neighboring countries.
Whether you live in a city or a village, Swiss life is an exquisite, finely-wrought
gem in a wonderful natural setting. |
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| But there are more practical
matters that recommend Switzerland as well. Businesses can benefit
from a location in one of the world’s true international commerce hubs
in Geneva or Zürich, and all the major business hubs of Europe – London,
Paris, Milan – are within easy reach due to Switzerland’s central location
and excellent transportation links. |
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| The available banking and finance
options should go without saying – the Swiss banks have the world’s best
reputation for dependability, security and discretion. Switzerland
also represents one of the world’s leading concentrations of highly educated,
highly skilled employees and business partners. Engineering and emerging
high-tech industries are particularly well-represented, as are service-oriented
and consulting firms. Language flexibility is a key aspect of Swiss
life, and the Swiss pride themselves on being able to communicate with
potential partners from anywhere in the world. |
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| Swiss commerce law puts a premium
on innovation and unique services, and small businesses flourish alongside
multinational corporations. But the business climate is not limited
to corporations; rather the philosophy behind the attractive business setting
also represents a model for how Switzerland treats private individuals. |
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| Switzerland
values valuable citizens, and has written a tax code to allow for wealthy
people to relocate and enjoy their independence relatively tax-free, without
changing citizenship. |
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| Tax regulations
vary between the different cantons, and details are dependent on one’s
country of origin, but well-off individuals and families will almost always
fare better under Swiss tax law than they would be in their home country.
There are even certain Swiss firms that specialize in relocation tax law,
and they can advise you about your personal situation, analyze what you
would save if you relocated, organize every step of the move, secure the
necessary residence permits and even negotiate with the Swiss authorities
to find you a favorable tax package. Since cantons are in a sense
competing with each other to attract the most desirable individuals, some
locations offer particularly striking options for wealthy retirees.
For example several cantons, including the canton of Berne, have no inheritance
tax – thus wealthy citizens are free to pass their assets on to their family. |
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| Lump-sum
taxation is another unique and advantageous option for foreign-born individuals
relocating to Switzerland, and is particularly interesting for EU citizens.
Lump-sum is only an option for foreign citizens who will not be economically
active in Switzerland, so it is well-suited for retirees, or for those
whose business is outside of Switzerland. |
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| In a lump-sum
taxation arrangement, an annual payment can be negotiated with the government
based on your standard of living in Switzerland, rather than on the usual
income-and-assets model. This allows for considerable financial privacy
if you desire it, because it does not require disclosure of income or assets,
and can also mean enormous annual savings, particularly for citizens of
certain EU countries. Certain other countries (for example Germany
and the United States) levy significant exit taxes on individuals who
wish to relocate (whether to Switzerland or elsewhere), but the
savings involved in a lump-sum or other Swiss tax ruling can easily make
the move worthwhile. |
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| Taken altogether,
the many attractive features of Switzerland mean that successful, financially
independent individuals like entrepreneurs, sportsmen and artists can establish
a new home in one of the most desirable locations in the world, and save
their own money by doing it. Businesses can also benefit
from relocating, and set themselves up in one of the most advantageous
and business-friendly climates in the world. The move to Switzerland
is not right for everybody, but it is probably more practical than you
think. Details are highly personal and individualized, so it is best
to discuss your situation with a firm specializing in relocation tax law,
for example the Berne-based firm Relocation Switzerland. |
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| They are a
“One-Stop-Shop” for relocation services and they take pride in handling
every important matter, acting as a reliable and discrete partner for clients
who might wish to relocate to Switzerland. |
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| There are
a number of good reasons to consider relocating to Switzerland. You
will benefit from flat-tax arrangements available for qualifying foreigners.
Their highly desirable political, social and economic stability.
Switzerland enjoys very low crime rate. There is a first-class infrastructure
and excellent banking facilities. You are sure of a very attractive
lifestyle and healthy environment. Take advantage of efficient and reliable
public services. Opportunities for personal tax rulings. |
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