Hi Everyone,
I have a bit of a situation that I don't know how to handle. Last year I got a permit b and moved to switzerland (geneva). Some time a go I loaned a hefty sum to friends from outside EU and Europe (I am a EU citizen) and now they want to return the money to me via bank transfer. Just so you know this was a gentleman's agreement between two private people and there was no paperwork. If I ask them to return the loan to my swiss account what kind of taxes/costs could that incur?
Thanks for any tips or help.
Regards,
ZM
Depending on how much you're talking, with no paper trail, it could easily trigger the money laundering rules.
You can always put some paperwork together right now with a simple 1 page contract and sign it?
I think you should be fine. The issue might be if you submitted taxes in the meanwhile and you did not declare this loan as cash, in that case you are between a rock and a hard place: in Swiss eyes either you "evaded" wealth tax before or you are trying to "evade" income tax now.
Go see an accountant. They'll even negotiate with the tax authorities. I neglected to declare something in my early years in Switzerland. It was all sorted out, with a little interest over and above the tax that was owed.
Don't worry about it to much. But deal with it.
Seeing as he only arrived ‘last year’ he may not yet have submitted his 2021 taxes. No violation yet. Tax advice should be sought. The tax people in Nyon have been very helpful to me. Perhaps a call to them might smooth the waters.
Could you perhaps give ma a link to some of the accountants you went to?
Yes, that's what I'm afraid of but would it even be seen as potential laundering if all taxes are paid according to laws - whatever they might be?
I guess generally in terms of the financial assets that are moved around in Geneva it is nothing but it is let's say one year's worth of a decently paid swiss salary.
Thanks everyone for your quick replies and insights.
This ts the Nyon tax office. You should start there.
https://www.vd.ch/toutes-les-autorit...yon-et-morges/
What interest was paid on the loan?
How much is massive? My dad sent me a loan of 70,000chf for my apartment purchase and nobody batted an eyelid.
This has been answered. So CHF50-120k.
In that case you most likely should file a tax declaration for 2021, as the loan is part of your net wealth and you are above the reporting threshold.
The limits for filing an ordinary tax declaration in canton Geneva is a world wide net wealth of 83'398 CHF (double for married couples) or a an extra income of CHF 3000 (per year) https://www.ge.ch/document/27080/annexe/0
Super easy if you arrived in Switzerland 2021, just request a full declaration before March 31st. However if you have been in Switzerland since 2020 or before you would have to use your once in a life time chance for a voluntary self disclosure with impunity.
My wife got 300k from a lawsuit in Italy, no taxes or anything.
Tom
Ok so this might just be liable to a normal income tax?
It shouldn't be - it's already your money, you've already paid tax on it.
Why income tax? There is no income. It is like retrieving money from your bank account at the ATM. This is neither income.
Do you have proof of the original loan on your eBanking (the payment to your friend)? If so, you can easily show that it was your money being returned, should anyone ask.