Cheers!
Quick question to the pros - we bought a house when living in Germany and rent it out now... returning to Switzerland do I obviously have to include it in my tax declaration. However, I get taxed on the income in Germany as well and understand that there are agreements in place to only pay tax once. What are the steps I need to do for that?
Widely discussed across the forum. You have to declare the property value and net income on your Swiss tax return. I would check with a professional about avoiding double tax.
Widely discussed but no clear answer on what to do? I know I need to declare it... but then? How hard can it be...
The value gets added to your assets, but only to determine your tax rate, and you will only pay your German tax on it.
Rental income likewise.
Tom
It's everywhere if you look. It'll put your Swiss income tax rate up then you'll pay more income tax in Switzerland. There's no direct tax on the rental income but you'll still pay extra tax because of it.
Use the Swiss Steuerausscheidung (tax division) process to exclude the earned or imputed income from foreign real estate and the asset value of foreign real estate from Swiss taxation.
All assets world wide have to be declared. A few years ago they did a purge here. They gave people with undeclared assets abroad the opportunity to declare them without any repercussions legally. But thats finished now.
Which doesnt need to be done by the tax payer: it is done by the tax authorities if you fill out your tax return correctly with relevant forms for the asset/mortgage and income/expenses for the property.