Swiss Capital Gains Taxes on Forex. Pls Help!

OptionsTrader1

Newbie
6 0
I'm getting the hell out of the U.S :clap: and moving to Switzerland this year :clap:. I'm a fulltime daytrader of Options and forex. Can anyone tell me how capital gains taxes are handled in Switzerland if I trade with a Swiss Forex Bank? I will have residency permit since my wife is from Europe. I haven't been able to find out on the net anything concrete. I've also considered Germany, but capital gains taxes looks to be extremely high, so I'm hoping Switzerland will be more advantageous. Looking at Basel City, Zug and Zurich. Please help.


Thank you
 

wackypete2

Legendary member
10,229 2,052
I'm getting the hell out of the U.S :clap: and moving to Switzerland this year :clap:.
Please don't go. We need your taxes. If the rest of us have to stay here and get molested and raped by Uncle Sam then it is your duty to bend over and take your turn.

Peter
 

anley

Senior member
2,730 229
You can go but your won't be able to get rid of US taxes because they're charged on income/profits (for US citizens) wherever they live and work.

My advice is simple. Drop your police state US citizenship and take out Swiss or UK, then (at least with UK) you won't have to pay tax if you live and work offshore.
 

Hittfeld

Well-known member
437 12
Hi OptionsTrader1,
Just some remarks:
If your wife is not only european, but citizen of one of the elect EU countries, she will be eligible for swiss residency - if she proves of an employment in CH or other sufficient means/ways of living. Husband/kids will be granted residency as well - if salary/pension/funds are sufficient.
I doubt that a US citizen with swiss residency will be easily accepted as a customer by swiss banks/brokers.
Capital gains not taxed, if they stem from the growth of your wealth or careful longterm dispositions - without doubt. But profits of a professional fulltime trader? I doubt it. If its your profession you will not only be taxed, but also subject to social security ( ca 9.5%) on top - if you are a private trader.
Concerning resideny here is a link http://www.live-in-switzerland.com/e/faq/index.html - concerning the special taxation situation http://www.ghr.ch/index.php?section=downloads&cmd=29&download=53 or google for " Gewerblicher Wertschriftenhandel " - unfortunately german only.

As far as I know the best tax-conditions for serious full time traders in Europe would be Italy, NL, Malta and Cyprus ---- aside from Greece. The german speaking part of Italy - formerly austrian Tyrolia has living conditions (schooling, medical..) at high standard ( city of Bozen/Bolzano).

Also you might check a part of Italy that is accessible only from switzerland: Campione

http://www.miralux.ch/campione_de.htm

A last word of warning: Saving taxes might be a high motivation --- for some. But you`ll only be a foreigner, in foreign lands speaking a foreign language ....

Kind regards
 

OptionsTrader1

Newbie
6 0
Hi OptionsTrader1,
Just some remarks:
If your wife is not only european, but citizen of one of the elect EU countries, she will be eligible for swiss residency - if she proves of an employment in CH or other sufficient means/ways of living. Husband/kids will be granted residency as well - if salary/pension/funds are sufficient.
I doubt that a US citizen with swiss residency will be easily accepted as a customer by swiss banks/brokers.
Capital gains not taxed, if they stem from the growth of your wealth or careful longterm dispositions - without doubt. But profits of a professional fulltime trader? I doubt it. If its your profession you will not only be taxed, but also subject to social security ( ca 9.5%) on top - if you are a private trader.
Concerning resideny here is a link http://www.live-in-switzerland.com/e/faq/index.html - concerning the special taxation situation http://www.ghr.ch/index.php?section=downloads&cmd=29&download=53 or google for " Gewerblicher Wertschriftenhandel " - unfortunately german only.

As far as I know the best tax-conditions for serious full time traders in Europe would be Italy, NL, Malta and Cyprus ---- aside from Greece. The german speaking part of Italy - formerly austrian Tyrolia has living conditions (schooling, medical..) at high standard ( city of Bozen/Bolzano).

Also you might check a part of Italy that is accessible only from switzerland: Campione

http://www.miralux.ch/campione_de.htm

A last word of warning: Saving taxes might be a high motivation --- for some. But you`ll only be a foreigner, in foreign lands speaking a foreign language ....

Kind regards
Thank you Hittfield for the response. My wife is a citizen of one of the EU countries. I've also spoken with a broker bank there and they said it would be no problem to open an account with them with a Swiss residency permit and be set up to pay Swiss tax. I plan on paying Swiss tax. I trade full time and we live off our investment income. How do we prove we are able to care for ourselves from this mean? How much money do we need to show to support this? Also I do speak quite a bit of German, although I will need to learn Swiss German. Is it my understanding from your post that if I am considered a professional trader, I will not only pay cantonal taxes but also social security tax? Can you give me a range of total percentage tax that will be needed to pay? I don't have a problem paying taxes wherever I am, as long as I know my tax will go to taking care of infrastructure, buildings, roads, healthcare, ect..., and not to BIG Gov't and especially the military industrial complex.(n)
 

anley

Senior member
2,730 229
Options

If you're a US citizen you still cannot get away from paying US taxes. The only way is to resign from being an American.

The IRS as you know are *******s so if you don't pay them while living non-US it's as bad as not paying them and living in say Dallas. Basically they'll get you at the border if/when you go back.

Yes, there will be some double taxation allowances but at the end of the day there's NOTHING you or any other US citizen can do to get away from the IRS, apart from renouncing your citizenship.
 

amit1986

Experienced member
1,100 66
A great trader once said to me: "happiness is where your family is".

Trading provides a great way to make a living and, after much experience, can also be extremely rewarding (financially). But what good is all that without enjoying it with close family and friends?
 
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OptionsTrader1

Newbie
6 0
A great trader once said to me: "happiness is where your family is".

Trading provides a great way to make a living and, after much experience, can also be extremely rewarding (financially). But what good is all that without enjoying it with close family and friends?

Precisely Amit. Great post. Thank you.
 
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