People moving to low tax countries

Life Hacking
1

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).

1 Like
2

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).

3

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.

4

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

5

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

6

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.

7

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.

8

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…

2 Likes
9

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.

10

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.