Does it exist in many parts of the world (apart from UK)?
I have no idea- thanks, cut would like to understand the concept better.
Does it exist here?
My understanding is that the only European countries which have non domicile systems are the UK, Ireland, Cyprus and Malta.
Please don't laugh.
In the US it's called non-resident alien. https://www.irs.gov/individuals/inte...esident-aliens
Are you sure about that? Residence and domicile are different concepts.
It doesn't exist here in the same form, but certain cantons are willing to give sweetheart deals to rich foreigners who are not economically active here. I believe the rate is a multiple of your rent/imputed rental value and I think I read there was generally a minimum of CHF 100k tax to be paid.
Tangentially related, I'm finding the faux outrage of Laura Kuenssberg regarding Akshata Murty hilarious. She should first look a bit closer to home and all of her colleagues at the BBC who were using personal service companies to minimise their taxes and getting involved in all sorts of capers. Highly naive of Rishi Sunak and the Conservatives to think this wouldn't be used against him/them at some point though.
I know a guy in a dom/non dom relationship, but what happens behind closed doors is none of my business.
As for tax domicile, I have no idea.
There's an easy solution to that: stop watching her. Better still, stop watching the BBC and watch SRF instead.
As it happens I don't watch her. Thanks for your snarky comment anyway. For reasons unknown I keep getting notifications on the Twitter app that I may be interested in what she has to say. Given I have 13 followers and follow 14 people and have a single digit number of tweets which have mainly to be to contact customer services for otherwise hard to reach companies, I have no idea why.
I believe there's a way of turning that off.
It exists in Belgium.
They made some changes in 2022 so it is not quite the same as it used to be but it does still exist there.
I've no idea what Kuenssberg is saying - and care slightly less. But Murty's claim that she had to do it because she's an Indian citizen is completely false.
Probably, but I didn't say it was bothering me. I said I thought it was hilarious
See above. I agree 100% re her claim, but frankly I care about her status about as much as you care about what LK is saying. Countries around the world compete for taxes and spending of the rich in various ways, be it non-dom, taxe a forfait, golden visas etc. That said I've always thought it's stupid to tell lies that can easily be proven to be false. Doesn't really seem to apply to politicians, celebrities and the super rich the world over though.
My question was very intentionally vague and not related to anyone in particular- it would be nice if that was possible. Thanks.
Well I already answered that for you regarding Switzerland. And you've been here long enough to know that threads can quite often take twists. Let's be honest though, the question was prompted by the furore regarding Mrs Murty.
Really ,
Looks like it's straight off the front page of the Daily Mirror !
Oh, come on, it's actually off the front page of the Guardian!
Neither- but it is irrelevant to the question anyhow.
Back to OP, please.
The closest analogue would be Pauschalbesteuert/Lump-sum taxation .
Would Rishi prefer it if his wife was dom?
Correct. In ~2017 the multiplier was increased (from 5x to 7x I believe), but for those already using LST (lump sum taxation) that didn't come into effect until five years later or so, or about now. So, if the imputed rent is 5k you're now taxed on income of 5k * 12 * 7 = 420k. Simultaneously a minimum of 400k was put in place on the federal level, which results in 100-150k tax bill depending on your location. This increase to 7x came in effect after the comparison below was published.
However that's income only, it ignores wealth tax. Effective wealth tax is 0.5-1% for 8 figures and above under normal taxation (unless it's hidden in a tax shelter of course).
Zürich abolished lump sum taxation some 15 years ago. 5-10 years later the before/after comparison showed that half of the ~200 LST left the canton (1/3 moved abroad, 2/3 to other cantons that still have LST). The tax bill of those remaining almost doubled, thus the net effect was a small reduction in tax generated. But that didn't consider the tax generated by those who replaced the leavers (the real estate for instance generates wealth tax and imputed rent/income), nor did it account for the tax generated in the cantons the leavers moved to.
At any rate the comparison shows that LST is a clear breach of the federal constitution, which demands taxation based on "wirtschaftlicher Leistungsfähigkeit", on economic standing. I bet the attempt to have it abolished by VolksInitiative a decade ago won't remain the only one for too long.