People moving to low tax countries

I think it is very interesting that the pandemic has led many people to move to some low / zero tax country. It seems that influencer and tech employees are on the forefront of this trend (often independent from their employer / freelancers that just need a laptop + camera):

Especially warm places with decent infrastructure seem to be the big winner here. I am wondering whether Switzerland will be on the winner or loser side here (my hunch is somewhat neutral given inflow and outflows).

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We would need some study about this trend. Few examples don’t make a trend.
Real rich and super-rich are much more discreet than influencer :slight_smile:
The main issue in CH is wealth tax which is quite high and double taxation for entrepreneurs (the company is taxed and your income is taxed).

Yep, and as soon there is some litle snow storm, no more electricity… But when you are rich enough, you can afford your own generator I guess.

What fraction of people are employee vs. entrepreneur/freelancer? (I’d think most people are the former, which has a lot less geographical flexibility).

Yes that happened in Texas – another reason for warm weather places :slight_smile:

I had always thought that Switzerland was a low-tax country.

Moving to the UAE just to save on tax seems like a solution that would be temporary at best.

Well as a regular employee you can move within the country (in CH that is like moving to Freienbach or Zug). The pandemic basically now allows a lot more people to work remotely … and potentially move to a freelancer contract. At that point you can really think about Dubai, etc.

Ouch, 23% income tax from the first Euro earned…
But the EUR100k flat tax is ridiculous… that the extreme rich like the mentioned Christiano Ronaldo can pay so little income tax (<0.1%!) would make me fucking livid if I was Italian.

Italy has some major structural problems and don’t think either of these two things are helping…

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Yes, it is a damn steal for people above 3-5m in NW (lets say you trade a lot on the stock market + dividend payouts). It also takes care of inheritance / gift taxation. So you can transfer wealth to your kids, etc.

Well it depends … but as a regular employee you should at least consider the low tax cantons if you are really trying to get ahead in terms of FIRE etc.

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