Gosh, sicher nööd!
But one does sign a form at Swiss Banks (AIA Automatische Informations Austausch) that requires you to inform the bank of any changes pertaining to tax domicile, so you’d be breaking that agreement if you “forget” to do that.
Which could get you in serious trouble with tax authorities of your new residence country.
Of course the Swiss bank doesn’t really care, they have their asses covered by that AIA form of theirs which puts the onus on you to inform of any changes. But if they suspect something they may send you the form to update, and then you’d have to “lie”, not only “forget”.
Hello Guys It has been 2 month since my last post in here and I wanted to share with you the latest development and do a proof of plan with the public opinion.
After 2 independent consultations with financial planners (which are not mortgage specialist but rather Fiduciars) - both said that I could just keep it quiet with my bank and not announce to them of my departure from Switzerland. Apparently city authorities and Banks do not talk to each other, and bank would never find out that I left the country as long as my name is still there, but as I have already told them that my plan is to leave, they might use this pre-text to request my Swiss residence and cancel my 9 year fixed mortgage at 1.1% because at current rate they are loosing money with my contract. - This still burns me every night as todays proposed rates are around 3% so triple the cost.
Secondly no banks have agreed to take my project as it is, and asked to add additional equity of about 80 000 CHF in oder to have loan to value ratio of 66%. I do not posses that much money as I have used all my cash to buy an apartment only a year ago, and still did not accumulate enough savings, but my employer have proposed to give me a loan for that amount. it will take me 4 years to repay it, but do you think its a good idea ?
Lastly contract detachment seemed too difficult and expensive for my employer to set up, so he has proposed for me to just move on the Dubai contract, the risk is that I am loosing entire Swiss social security, but i guess with 80k loan on me, I am guaranteed to keep my job for at lest until I will pay it back =) Main benefit that I will no longer be paying any taxes, so 30% upside on salary, but in my mind all those savings will either go in to savings for Pension or paying off twice as high interest rate for the apartment. (Which will be rented)
What do you think guys ? Is it a worth thing I am getting my self in to ? =) Your opinions are always so precious to me !
Oh man, you should be really confident in your employer.
1 Like
Hi All I’m new to this community and found this conversation very helpful since I have also been considering a relocation from Zurich to Dubai (I hold a B permit and EU passport). A big question I haven’t really been able to find the answer to is how do salaries compare in the two locations? Anyone has a ballpark idea? I am in tech and my partner is in banking. I just wonder if we were able to have the same lifestyle and save the same amount of money if we decide to make the move… cheers
The usual levels.fyi and glassdoor can give some hints on salary level. The big difference with GCC countries is that your contract isn’t just base + yearly bonus + stock (if any) but other factors which can be significant. That can include housing allowance, school allowance, transport to/from country 1-2/year for you and family and other benefits. Also an indemnity after contract concludes. Fixed term or open ended contract. Particularly school allowance can be very significant if children, 50-100k AED/year per child is pretty normal. Race, skin color, gender and age will have an effect on salary too, besides experience.
Everyone’s experience will differ, in my brief interest in the country and search, it was less (-20/30%) than in Switzerland for comparable positions. With a lot more variantion and expectations placed on candidate. When comparing numbers, 2nd pillar and employer contributions should not be neglected.
1 Like
@Daniel I assume if you remain registered as Swiss resident you would pay income tax in CH, even though you have a UAE contract. Correct?
Do you know if income tax is reduced if you only spend 7-8months in CH as opposed to 12months?
And as far as you know, how many days can you spend in CH before you are considered resident as EU nationals (without gainful employment as work would be inUAE)? 90 days?
Correct. AFAIK there is no income tax in UAE, so you would only be taxable in Switzerland. Of course, that begs the question: Might it make sense to reside in UAE if you have that option?
That would depend on whether you actuall give up residence in Switzerland for 4-5 months per year and become a tax resident of another country for those 4-5 months. If you keep your primary residence in Switzerland, you will be taxable here.
Generally, an EU citizen could not take up legal residence in Switzerland without being employed by a Swiss employer. So that situation would only occur if the EU citizen is already a legal resident of Switzerland. A person is considered a tax resident if they live in Switzerland 30 consecutive days with gainful employment and 90 consecutive days without it. However, if you live in Switzerland but work for an employer in the UAE, you would have to register as Anobag. That would likely put you in the gainful employment category because you are earning an OASI-eligible income.
1 Like
@Graff curios to know what you ended up doing and your experience? This would be very helpful for the community. Thank you
1 Like