Do I Have to Tax Property Abroad As a Foreigner With a B Permit Paying Swiss Withholding Tax?

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  • Benutzernametrundlebot
  • Status Member
  • Registriert seit1/25/20
  • Beiträge1

Hi,
I moved to Zurich in May 2019 with a B permit. Since my income is under 120k I'm paying my taxes at source.

It happens that I also own a house abroad (Italy, value should be around 100k€ and imputed rent ~ 6k€/y). The house is not rented.

By quickly googling around I found that I'm supposed to declare it in my tax declaration so I've been asking some tax consulting agencies for a quote for my situation.

Here comes the complex part:

Consultant a) This tax consultant quoted consultancy fees of 1200 CHF for the tax declaration
Consultant b) This tax consultant charges between 150-650 CHF for sorting out my tax return depending on how good and precise I am in providing the required documents.
Consultant c) This consultant told me that because I have a B permit, a net worth under 200k CHF and because I pay taxes at source I don't need to declare the house in my tax declaration.

Does anyone have experience with this situation? Is agency c) correct in this case? Honestly I think that agency a) asked way more than the fair market price for my situation.

I've been thinking of writing directly to the cantonal tax office? Is it a good thing? Can they provide me the answers I'm looking for? I don't really speak German and I'm afraid they will just point me to some technical German document I will not be able to understand.

Thanks to anyone that will help me figure this out.

 
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  • BenutzernameMoneyguru von moneyland.ch
  • OrtSchweiz
  • Status Expert
  • Registriert seit8/4/15
  • Beiträge4017

Hi trundlebot,

As a resident subject to withholding tax, you are required to declare supplementary income and wealth if it exceeds these thresholds:

  • Supplementary income in addition to your taxed salary: 2500 Swiss francs per year.
  • Personal wealth (including property abroad): 200,000 francs.

If you earn a rental income on your property which exceeds 2500 francs per year, you must declare this separately using a tax return form available from the tax office. The same applies if your total personal wealth (including the value of your property abroad) exceeds 200,000 francs.

If any of these scenarios apply to you, you can obtain a tax return form from your tax office. Your local tax office should also be able to answer any further questions you may have.

When you submit the return to your tax office, this taxable income or wealth is accounted for along with your withholding taxes and any tax deductions which you claim.

If the above scenarios do not apply to you, you do not need to submit a tax return or take any action for that matter. You simply pay the withholding tax which is automatically deducted from your salary by your employer.

Best regards from Moneyguru