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Income tax expemtion
When I worked in Germany I claimed all of my German taxes back and was able to so since I worked less than two years in Germany. Does anyone know if it is the same for US citizens working in Switzerland? It was also true for new Zealanders and Australians. Thanks, Donna
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When I worked in Germany I claimed all of my German taxes back and was able to so since I worked less than two years in Germany. Does anyone know if it is the same for US citizens working in Switzerland? It was also true for new Zealanders and Australians. Thanks, Donna
donnabrownJan 13, 2009 @ 18:51
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Re: Income tax expemtion
Post 1

I don't think you can claim all your taxes back from your income in Switzerland.  Although, you do get a USD 89,000 per year foreign earned income exemption on your US taxes.  So basically you dont have to pay US income tax on your first 89k.  Hope this helps.

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I don't think you can claim all your taxes back from your income in Switzerland.  Although, you do get a USD 89,000 per year foreign earned income exemption on your US taxes.  So basically you dont have to pay US income tax on your first 89k.  Hope this helps.
JustChilling, Jan 13, 2009 @ 19:22

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Re: Income tax expemtion
Post 2
Excluding a few exceptions (e.g. say somebody who has a time-limited international assignment, needs to work in Switzerland only part of the year and keeps family and interests in the home country) I think that a foreign citizen working in Switzerland becomes subject to Swiss taxation. If you are fiscally resident in Switzerland I think you have to pay taxes on your net worldwide income (i.e. including income sources outside of Switzerland) and net worldwide wealth (i.e. including all funds, properties etc. outside of Switzerland) in Switzerland.

Switzerland then has "double taxation treaties" with a long list of countries which prevent foreign citizens from being taxed twice on what they earn. The way to avoid being taxed in the home country (exemption) or to claim back what has been levied in the home country depends on the specific treaties.

In any case what you pay in Switzerland cannot normally be claimed back. What you save (or can claim back) is what you should have paid (or have paid) in your home country. In many cases paying taxes in Switzerland is profitable for a foreign citizen as compared to having to pay them (on the same net income) in the home country.

Not paying income taxes at all is, to my knowledge, (legally :) ) not an option... unless you plan to work for some large non-governmental organizations. Hope this helps

The text you are quoting:
Excluding a few exceptions (e.g. say somebody who has a time-limited international assignment, needs to work in Switzerland only part of the year and keeps family and interests in the home country) I think that a foreign citizen working in Switzerland becomes subject to Swiss taxation. If you are fiscally resident in Switzerland I think you have to pay taxes on your net worldwide income (i.e. including income sources outside of Switzerland) and net worldwide wealth (i.e. including all funds, properties etc. outside of Switzerland) in Switzerland.

Switzerland then has "double taxation treaties" with a long list of countries which prevent foreign citizens from being taxed twice on what they earn. The way to avoid being taxed in the home country (exemption) or to claim back what has been levied in the home country depends on the specific treaties.

In any case what you pay in Switzerland cannot normally be claimed back. What you save (or can claim back) is what you should have paid (or have paid) in your home country. In many cases paying taxes in Switzerland is profitable for a foreign citizen as compared to having to pay them (on the same net income) in the home country.

Not paying income taxes at all is, to my knowledge, (legally :) ) not an option... unless you plan to work for some large non-governmental organizations. Hope this helps
FrancescoLP, Jan 13, 2009 @ 20:38

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