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Press watch: tax exiles

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‘British millionaires based in Switzerland … face higher taxes amid resentment at generous privileges granted to rich expatriates. After a referendum led to the abolition of tax deals for rich foreigners in Zurich, the country’s financial powerhouse, the far-left party La Gauche has now started collecting signatures for a petition to scrap them nationally.

‘Switzerland has the highest concentration of millionaire households in Europe. Tax concessions have helped attract 5,000 expatriates … Under the “lump sum” deals, the only tax rich foreigners pay is based on their living costs, assessed as equivalent to five times the rental value of their Swiss home. The expatriate must spend at least half the year in Switzerland and cannot work there.

‘Fiscal experts estimate abolishing the tax packages would mean foreigners would have to pay as much as 10 times more on their worldwide income as well as their property and other assets.’

Sunday Times, 8 May 2011

Issue: 1076
Categories: News , International taxes