Living in England, checking for alternative low tax countries in Europe. The effective tax rate for an income of 200K in Zurich is 42%! I thought Switzerland was a "tax heaven" or at least it had reasonable tax rate. My understanding was that the tax rate for income would be between 20-30%.
Source: https://ch.talent.com/en/tax-calculator
Is it even worth it to move to Switzerland? And please don't suggest Eastern European country as an alternative!
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Income tax calculator 2022 - Switzerland - salary after tax
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Also you don’t have to live in Zurich, there are cantons where you can get to 26ish%.
Thirdly part of what they show is pension contributions which you can actually take with you when you leave Switzerland.
Lastly you have to consider that you can make a ton of deductions on your tax declaration, so your actual tax bracket might be substantially lower than the 200k you make. You then also pay that lower tax rate only on your income minus deductions.
It would be interesting to create a holistic comparison between international tax regimes, taking factors such as the ones mentioned above into account.
What deduction can you make?
In terms of deductions there are a slew of deductions on the federal and cantonal/communal level. Some are “automatic” (pauschal) such commuter’s deduction, some you have to prove that you had expenses, such as childcare costs.
Listing all the deductions would be too long for this post and I am not a tax advisor/expert. But a family with two children can typically deduct around 40-50k.
Caveat: This number depends highly on your personal financial situation, and the canton/gemeinde where you live. Also the tax legislation is changing constantly.
Consult your Swiss tax advisor for real tax advice though ;)
If your employer can make the proper arrangements, you may as well move to Neatherlands and take advantage of the expatriate incentive (max tax rate at 34.3%).
Otherwise, keep where you are until you have enough money to retire, move to Portugal, Spain or somewhere else cheap.
On a 200k CHF salary at a Swiss company, you will net about 12450 CHF into your bank account monthly (around 75%) and that's after pension contributions, unemployment insurance, etc.
Is Amazon hiring SWEs/EMs in Switzerland?
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