As far as I can tell, the ZH tax authorities don’t account for withholding taxes in provisional tax bills. I.e., the provisional tax bill would be 15k in both cases (the basis for the provisional tax bill will be behind by 2-3 years, though). The 35% withholding taxes will be deducted in the final tax bill, of course, so with CH funds there would typically be a refund.
However, I’m not sure whether it really makes a difference with regards to “felt” taxes if the number on the provisional tax bill and the total on the final tax bill (before deductions) is as high with Swiss funds as it is with IE funds.
I think the tax authorities should deduct the withholding taxes (from the earlier tax year used as calculation basis) even for the provisional tax bill but they don’t currently do this, in my experience.
(I like not having to sell shares to pay dividend taxes but that is also the case with distributing ETFs domiciled in the US or Ireland.)
Looking at VIAC Invest, I think I should sharpen what the requirements for this “hands-off” solution are:
invest into the world through passive funds
no manual rebalancing of regions
no significant CH bias
being able to invest varying amounts of money (adjusting standing order or transferring occasional lump-sums) without having to adjust anything
VIAC Invest fails in either point 2 or 3. in The only two solutions that fulfill all criteria are, along with their drawbacks:
findependent
requires 5k minimum investment
requires know-how to setup a custom portfolio with VWRL
finpension
misses Canada, Denmark, Israel, Norway, Sweden
If you’re fine with manually adjusting the amount that you want invested, you can also go with neon or Yuh. You save a lot of fees and have none of the drawbacks of the solutions above (well, maybe except knowing which ETF to choose, although neon basically tells you to choose FWRA when setting up the savings plan).
I’m still waiting for a big Swiss bank to offer a fund savings account with a passive fund that doesn’t have a 40% CH bias.
Hi everyone! I’m new here and am just reading into the topic - thanks to everyone for their inputs! It would be really great to have Saxo with the “auto-invest” in the comparison above - I think the set-up of the auto-invest is not really that hard so it could pass as an “hands off”-strategy, no? I am currently in the situation to find my way to invest (25 years to retirement). Wanted to do VT & chill (could buy at Saxo) but now I’m a bit afraid of the complexity of it, DA-1 forms, not accumulating (means I got to re-invest), afraid of law changes that forbid VT with swiss brokers down the road (then I start from beginning kinda since we strive for compound interest in the end, no?) I think a auto-invest kinda thing like Saxo would be a good solution for someone like me… MSCI ACWI USD Acc combined with MSCI EM would recreate VT in some way?! Or am I missing something?
Why would a law change here, do anything to your existing returns?
Even if the law would change, nobody would take your VT shares from you.
That would be the biggest scandal there ever was in swiss investing history.
The absolute worst that could happen would be you not being able to buy more VT shares. But you can sell your existing ones any time.
We also don‘t pay capital gains tax, you can freely sell and buy stuff anytime.
thanks for explaining, makes sense! I have no clue about investing, as you see XD Therefore I look for the idiot-proof hands off solution, so I came here.
He wouldn’t notice though.
Your Hans only ever had ONE of the two portfolios, and so he would never know the difference.
Plus the amount is mixed in with the rest.
Autoinvest -: It’s only valid for few ETFs and you have to pay trading fees when you sell anyways. Autoinvest ETFs cannot be transferred to another broker, so selling fees will be incurred for sure.
I think they selected high volume ETFs for this scheme and most likely they can combine orders from many people together to make an efficient trade. I read that transaction is made on
a certain day of the month.
UBS is actually already the largest Swissquote ETF partner, offering 384 ETFs under the “ETF Leader” section. Unfortunately, at Swissquote this only means that the commission is capped at CHF 9 (and you still pay SIX fees).
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