Cancelling Swiss health insurance when leaving abroad as a permanent traveller

Taxes
1

Hello,

I have deregistered from Switzerland, I have official deregistration letter from the canton. I am moving outside of EU and plan to not take another residence, and be a constant traveller in Latin America. I will not be taking on another job.

However, Helsana says this: “If you do not establish a place of residence abroad (regardless of whether you are registered or deregistered in Switzerland) or if your stay abroad is temporary, the obligation to have insurance in Switzerland will continue to apply. For this reason, withdrawal from basic insurance is not possible.”

So, if I understand correctly, they will keep charging me for the health insurance, which I will not even be able to use. What is the legal ground for this? I thought that once I move away from Switzerland and stop beng a tax resident, my responsibility to switzerland ceases.

2

Why so? Theoretically you can get some emergency medical treatment in European countries covered by this insurance.

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3

Let’s say I am in Brazil. What kind of health insurance is EU going to offer me?

No thanks, I will purchase my own global private health insurance.

4

https://www.fedlex.admin.ch/eli/cc/1995/3867_3867_3867/fr
Art 1 al 1 + Swiss civil Code article 24

“A person retains his or her domicile until such time as a new one is acquired.”

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5

Is domicile the same as tax residency? Which canton do I pay taxes to? The last one, or maybe just federal taxes? So I can just remain Swiss tax resident forever without ever visiting the country and without minimum stay requirements?

In case I need health care abroad, will Helsana cover the bills, no questions asked? Or will they be a pain in the ass?

6

Those are not necessarily the same concepts, but there’s obviously some overlap. Civil residence is defined in the civil code, while tax residence is defined in the tax law.

7

And Tourists abroad and globetrotters is very explicit about it.

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8

It was explored before on the forum. Technically you could also still be subject to swiss tax and AVS.

See this thread

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10

The insurance not only covers emergencies within Europe but Globally. There‘s just a cap in case of treatments signifficantly that are more expensive than they were in Switzerland.

Routine treatments, pre-planned medical undertakings and check-ups are (by definition) not emergencies and must be done at the domicile (aka are covered in Switzerland only)

11

You THINK that you stopped beeing a Swiss tax resident. But thats not the case. You currently just commit tax evasion and they didn’t yet catch you - hence don‘t yet tax you.

Full disclaimer: i flagged your post as you intend to pursue illegalities and now complain that your illegal plans don‘t work out.

12

Illegal is quite a strong and rightous term. It’s not one usually deployed in Swiss legal conversations.

I would, however, have applied more ridicule in any direct answers of mine. So a good thing you and others arrived first :wink:

In a general manner, my point is this: There is “legal knowledge” and there are “actions”. Doing the knowledge stuff first is pricey. Consider, however, that this cost might be an indication (a very rough one) for what’s at stake. It is surely a limited expense.

When doing “action” first, based on “thinking”, you might actually save the money for “knowledge”, to the extent at least that the “thinking” is legally sound. You however don’t know what you don’t know. So the distance between “knowledge” and “thinking” (and thus the possible cost of this approach) is maybe not limitless, but can be meaningful.

13

You need to be resident somewhere. It’s not possible to be international-non-resident under normal circumstances

Perhaps best would be to establish residence in country of your choice wherever you can legally establish that. And then problem solved.

I think your plan to be without residency in any country is not going to work. Maybe you assumed it’s possible but it’s not so easy. Not sure if even possible

14

Go easy… there is a difference between not understanding the rules and asking how to break the law.

OP is not the first on the forum to ask about the “international nomad” topic, and won’t be the last

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15

Honestly I am okay with paying for health insurance, as long as I get what I paid for. The original worry was to continue paying but when I get hurt be left on my own.

So I don’t need foreign accident insurance, because swiss health insurance always covers accidents?

16

It is a common limitation on nomadism in other countries than Switzerland as well.
It happens to a friend that was previously French resident and has the same issue. He left his job in France, left the country to travel the following year and lived in 4 different countries outside of Europe. A year after France still claim he was subject to french taxation as he couldn’t justify another primary residence.
The next year, he picked an European country to establish his primary resident for more than 6 months in the year to escape it. He keep this flat that he can sub rent during his trips.

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17

This is what I am curious about, because in Switzerland you are taxed depending on the canton. If Switzerland claims you as a tax resident without you having a home in a canton, which canton will they pick? Your last one? Or will you only be liable for federal taxes?

18

I think you are all wrong. This is the Swiss tax residency criteria:

An individual is deemed to be a tax-resident under Swiss domestic tax law, if:

  • the individual has the intention to permanently establish his/her usual abode in Switzerland, which is usually where the individual has his/her centre of vital interest, and is registered with the municipal authorities, or if
  • the individual stays in Switzerland with the intention to exercise gainful activities for a consecutive period (ignoring short absences) of at least 30 days, or if
  • the individual stays in Switzerland with no intention to exercise gainful activities for a consecutive period (ignoring short absences) of at least 90 days.

So if you deregister from your canton, you no longer fulfill the point number 1. Also if I have no connection to Switzerland anymore and don’t even visit, then how can they claim the centre of vital interest?

19

Read the thread I posted above. Post 54

“The Civil Code stipulates that a person’s domicile, once established, remains in force “as long as he has not created a new one”. According to the established jurisprudence of the Swiss Federal Supreme Court, it is not sufficient to deregister from one’s former place of domicile in order to no longer have to pay taxes there.”

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20

Domicile and tax residency are two completely different concepts. It is possible to be a tax resident, but not domiciled, and the other way around:

Overview. Tax residence is a short-term concept and is determined for each tax year separately, broadly reflecting where you reside. Domicile is more long-term and refers to the country which you consider to be your permanent ‘home’ over the course of your life.

Also, in your case, which canton gets your taxes, if you are not registered in a canton? This is a good question.

21

You do your own research then

Here is the orignal article in French.

"Where do I pay taxes when I live and travel in a mobile home?
As a general rule, you pay taxes where you live. If this is constantly changing, tax matters become complicated.

Depending on whether you’re gainfully employed and traveling within Switzerland, or a globetrotter, you’ll have to pay taxes in different places.

Principle: pay taxes at your last place of residence
The Civil Code stipulates that a person’s domicile, once established, remains in force “as long as he has not created a new one”. According to the established jurisprudence of the Swiss Federal Supreme Court, it is not sufficient to deregister from one’s former place of domicile in order to no longer have to pay taxes there. Rather, the relevant factor is that, under all the circumstances, a new domicile has been established.

Tax liability in the event of a permanent change of domicile in Switzerland
In principle, you pay taxes in the canton in which you reside with the “intention of settling there permanently”. If your tax domicile changes during the course of a tax year, you pay tax in the canton in which you are domiciled at the end of the tax year.

In the case of a permanent change of residence, you do not intend to stay permanently in another place. This is why the Swiss Federal Supreme Court makes the link here with an actual stay in the sense of a physical presence, whereas the subjective element of the intention to stay permanently is not required. If you are gainfully employed, you pay tax in the canton in which you are resident for at least 30 days. If you are not gainfully employed, you are subject to tax in the canton of residence if you stay there for at least 90 days. A short interruption in your stay is irrelevant and does not release you from tax liability.

Finally, real estate ownership also entails a tax liability, even if you have no residence or tax domicile in Switzerland.

Tax obligations for globetrotters
If you leave Switzerland for an undetermined destination, you generally take with you the tax liability of your last place of domicile: you cannot be domiciled in more than one place at the same time, nor can you have no domicile at all. For the Swiss Federal Supreme Court, this is clear: it is therefore irrelevant when the taxpayer deregistered or left his former place of residence. If he moves abroad, he must pay direct federal tax until he can demonstrably establish a new domicile abroad."

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