To my best understanding, a 3B pillar is the best way to shield investments from capital gains taxes. How come are so many people then using online brokers and do DIY investing? Does that not make you lose the tax relief?
All the best,
There are no taxes on capital gains in Switzerland, just on capital earnings (dividends and interest).
In exchange for that, we have property taxes, which I think most other countries don’t have?
Thanks for the answer. It now makes a lot more sense. Yes @Neville , I lived in England for a few years and the property taxes you need to pay in Switzerland for “equality between home owners and people that rent” is quite an interesting concept.
Can you deduct mortgage payment in UK?
I am not very sure. I am now living in Switzerland. I don’t see from what you would deduct this anyway. The only thing I know for sure is that if you own a limited company and work from home you can deduct a fraction of you interest repayments from you business taxes.
The thing with the virtual rent income, is that it’s often offset with deducting mortgage payment and maintenance cost, so compared to other countries might be a wash.
No. Tax relief on mortgage interest for one’s own home was scrapped in 2000. Until recently landlords could deduct mortgage interest from their income but that’s about to end as well, being replaced by a deduction from the final tax bill instead.