I’m a French resident. Used to work in CH, but no longer - and don’t have any work permit anymore.
I have a vested benefits account in which I can invest in Vanguard accumulating index funds based in Ireland (ETFs too, but since I can use index funds, I’d rather go for them). They’re here:
I could withdraw at least part of the account since I left CH, but taxation would be high (social charges in FR on top of the 6.75% tax) and for now, I plan to live in FR - later, I might be able to minimize this tax. So even though investing in the vested benefits account ends up costing me in the 0.5-0.6% all fees included, I find it a decent deal for keeping my money invested, with good security, in CH.
I’m thinking of investing in Global Stock Fund and Global Bond Fund (maybe 1 or 2 more), both acc EUR. This way, as a FR resident, I don’t need to bother with dividend declarations - and it also costs me a lot to reinvest the dividends within the vested benefits account frame.
The question that remains is if the dividends/coupons from the index funds are subject to Swiss 35% withholding tax, because that is a deal breaker (if I end up paying 0.7-1% more in taxes on top of the 0.5-0.6% in fees)
From what I understand:
- L1TW - dividends will be taxed by each country (eg US at 15% etc)
- L2TW - no Irish tax
- L3TW - this should be based on my fiscal residence (FR) so in theory CH should not tax me
Also, I understand that foreign acc funds should not be subject to it (http://www.taxinfo.sv.fin.be.ch/taxinfo/display/taxinfofr/Fonds+de+placement), but I’ve read a few contradictory reports.
So, if anyone has all the data on this, I would really appreciate it.