I'm EU citizen, permit B
I have received a letter from Zurich Steueramt recently, regarding my tax declaration for 2020.
I was informed that because my family lives abroad, in EU country, my focus of life is abroad as well. Because of that I have only limited tax liability in Switzerland (beschränkte Steuerpflicht).
Does someone knows what would be the concequences of this status? How it might affect me in a bad way?
Just want to understand if is worth for me to challenge this decision.
Most likely you will be considered tax resident in both countries. You need to get tax advice from someone knowledgeable about the tax situation in both countries.
Switzerland confirms that you remain tax resident in your home country. You'll be taxed here only for income which happened here, but your home country might deduct amount paid in Switzerland from your taxes or might not tax that income at all. It depends on a tax treaty between the countries.
Thanks for answers, I will clarify it with my home country tax office.
But considering other aspects, do I lose any rights with this status? For example, can I apply for citizenship after living here for 10 years? Will I lose anything in social security?
For citizenship, your centre of life must be in Switzerland. If you're unemployed, you'll get the usual 2 years unemployment benefit. If you still don't get a job, they may decline social and tell you to go home.
Since you're an EU citizen, it is extremely likely any tax you pay in Switzerland will be offset against your home taxes.
Each have their own criteria and are not directly impacted by the other. That said, as an EU citizen you have a right to permanent resident status after five years, but not a right to citizenship. And in that respect if you still have the same status, I would not be surprised if your application for citizenship was rejected as it would indicate you have not integrated into Swiss society.
But are you going to live far apart from your family for the next 10 years? That's complicated, so to say...