My wife and I have only recently discovered the idea of FIRE, although we have always lived a frugal lifestyle. Until now though, savings have just been languishing in the bank as we’ve been reluctant/scared to take the plunge into stock market investing to really make the money work for us. Discovering a resource such as this has got us excited and we think it time to take action.
We are both 37 and immigrants to the region; my wife is working part-time in Vaud, I’m working full-time in Geneva. Our situation is somewhat complicated because we are cross-border workers (“frontaliers”), living in France; we’re hoping someone in the community here might have experience and be able to guide us on any potential traps in our situation.
Currently I am taxed at source; my wife is not. Each year we complete a tax return for the household, where I receive credit for the tax paid in Geneva (ie no tax to pay to France for me) and we pay tax to France based on my wife’s income in Vaud, which is not taxed at source.
Before I go ahead and open an IB account and start buying into some ETFs, I’d like to make sure that we fully understand the implications, especially with regards to future tax obligations/burden. After much reading, if I understand correctly, CGT on stock investments for a Swiss resident is zero? And dividends are taxed? I’m guessing that it won’t be the same for cross-border workers, but I can’t find information that confirms what the situation would be in that case? If we would have to pay tax on our investments to France (and not to Switzerland where our “working life” is), then any ideas how much it would be? If no-one here has specific experience of this use-case, perhaps someone has had a good experience with a financial advisor down this way that they could recommend please?
I’m basically just trying to figure out what the best way forward is…
Thanks for reading and we look forward to our journey towards FIRE along with the rest of you!