Switzerland Fact-File Part 7:
Business Owner Welfare and Lifestyle

7.7 Switzerland Individual or Business Leaving The Switzerland

Moving Away from Switzerland

There are no taxes or rules devised to discourage or penalise an individual or business from leaving Switzerland.

Individuals deemed to be tax residents of Switzerland (generally: resident in Switzerland and in paid employment for 30 days, or 90 days if not working) pay income tax on worldwide income, although there are some exceptions including any real estate owned abroad. An individual is also deemed to be resident for tax purposes if their main centre of interests is in Switzerland. ‘Main centre of interests’ can mean someone’s principal business interest, or main private residence, or the location of the majority of their savings and investments. If a person has a permanent residence in Switzerland, he or she may also be deemed to be a tax resident.

If an individual is resident in Switzerland but income is received in another country, then that country may hold the individual liable to pay tax on that income (not any other income outside the country concerned), although where they exist, double taxation treaties should prevent tax being paid on the same income twice.

There may be benefits in remaining a Swiss tax resident and travelling abroad to conduct one’s business, and indeed a number of workers choose to undertake this cross-border 'commute', rather than transferring tax residence to another country.

When considering moving from Switzerland to live and work in another country, the length of time a person is likely to remain abroad is an important factor. If the move abroad is likely to be longer term, then proper arrangements should be made to put financial affairs in order. Swiss tax authorities should be informed of any overseas move.

The key issues to address before relocating are:

Does the destination country have any treaties with Switzerland to prevent the double taxation of income?
What are the residency requirements if planning to live and work there long term?
Is a work permit and/or a visa required?
Is it necessary to open a bank account in the country and what are the costs and fees involved in transferring funds from Switzerland to the new country?
Should any property owned in Switzerland be sold, or rented out and what are the tax implications in Switzerland and in the other country?
What is the tax regime of the new country – are the taxes there higher than in the Switzerland?
Is there an adequate education system?
Is private medical insurance required and is there entitlement to free state healthcare?
It is important to ensure that all documents that might be needed are current and valid, including passport, birth certificate, driving licence (does it cover driving in the destination country?), visas and if applicable, the European Health Insurance Card.

There are no restrictions relating to moving money out of Switzerland so this can be done whilst maintaining a residence in the country.