Published: 13 Sep 2012 21:09 GMT+02:00 | Print version
Updated: 13 Sep 2012 21:09 GMT+02:00
Well-heeled foreigners may in the future need to pay Switzerland more to keep their low tax Alpine refuge, but angry Swiss still want to end the sweet deals.
The lower house of the Swiss parliament voted late on Wednesday to increase the tax rate for rich non-Swiss residents to seven times their rent or the rental value of their home, from the current rate of five times.
The measure, which must still be considered by the upper house, can only become law in five years at the earliest.
The move comes amid heightened interest in relocating to Switzerland from rich French nationals in the wake of the election of Socialist President
Francois Hollande who intends to tax them at a 75 percent rate.
The special Swiss tax deals can prove highly advantageous for rich foreigners.
According to Swiss property agent Sovalco, a French couple with assets of €16 million and income of €750,000 would pay some €500,000 in
tax in France but could cut that to under €40,000 by moving to Switzerland.
The Swiss state received nearly 700 million francs (€580 million) in revenue from this arrangement in 2010.
While the vote was carried, opposition to the scheme is stirring among the Swiss, who are not eligible.
A spokesman for the Green party said it was "shocked by these unjust privileges given to rich foreigners".
Opponents of the scheme told AFP that they will seek a national referendum on the issue, adding that they have until October 17th to gather the 100,000 signatures required.
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Geneva cantonal police raided eight erotic massage parlours on Tuesday for an investigation into tax fraud allegedly amounting to several million francs. READ () »
A diamond necklace from Geneva jeweller De Grisogono worth 2.5 million francs was reported stolen from Cannes on Thursday, just days after thieves made off with 1.4 million francs' worth of bling from Chopard, another jeweller from the Swiss city. READ () »
Chinese Premier Li Keqiang sees a looming free-trade deal with Switzerland as a touchstone for Beijing's growing ties with foreign nations, he told a Swiss newspaper on Thursday ahead of a landmark visit to Europe. READ () »
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After a wetter than usual start to spring, Switzerland is bracing for a return to wintry conditions and snow in some locations over the next few days. READ () »
Switzerland, currently in the process of restituting assets to several former autocratic countries, is working on a new law aimed at simplifying the process of freezing and unblocking such funds, the government said on Wednesday. READ () »
A project backed by two of Switzerland’s wealthiest men to create a Geneva biotech centre is back on track after German pharma company Merck agreed to sell its sprawling complex in the Swiss city. READ () »
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