If you are living in Switzerland, relocating here, or are planning a return to Australia, ensure your finances are working as efficiently as possible and you are taking advantage of all available opportunities.
If you are living in Switzerland, relocating here, or are planning a return to Australia, ensure your finances are working as efficiently as possible and you are taking advantage of all available opportunities.
As an Australian expat in Switzerland, you face a unique set of financial opportunities and challenges. Whether it be managing Australian property, optimising tax-efficient investment strategies, or planning for retirement, our team specialises in providing comprehensive financial advice tailored to your cross-border needs.
We simplify complex financial matters, ensuring that you are able to remain on plan with your long-term objectives while maximising tax efficiency and protecting your wealth.
Through our in-house Head of Australian Advisory Operations, who herself has come from Australia and is the primary contact for all our Australian expatriate Clients, we have the necessary depth of knowledge, experience and understanding to ensure that you do not miss out on any of the available opportunities.
Our handbook will provide you with further details as to what is available whilst overseas. Inside you will find the eligibility criteria, superannuation contribution caps, and more.
Investing as an Australian expat in Switzerland offers unique tax advantages that can significantly enhance your returns. Unlike in Australia, where capital gains are taxed at your marginal income tax rate, retail investors in Switzerland are exempt from tax on investment gains.
This difference provides an opportunity to grow your investments more efficiently while benefiting from a stable and diverse market environment. Leveraging these advantages can play a crucial role in maximising your financial planning strategy(ies) as an expat.
It can be problematic to take continued advice from any Advisor Firm in Australia, or any previous country of residence in fact, as you will likely lose out on regulatory protections and miss any potentially significant financial opportunities open to you about which your non-Swiss adviser is unaware.
Understanding the regulatory landscape is vital for international investors. Through our private wealth management and investment planning advice service, we only recommend investments that are wholly compliant with regulations in Switzerland and Australia.
This proactive approach minimises risks and prevents unexpected tax liabilities, allowing you to invest with confidence.
Currency management is another critical aspect of international investing. Fluctuations in AUD and CHF can significantly impact your returns. This means that it is not always beneficial to transfer funds from or to AUD to benefit from higher interest rates.
We believe that a disciplined investment process is key to achieving long-term success. Our approach combines thorough research, regular portfolio reviews, and adjustments based on market conditions to keep your investments aligned with your financial objectives.
Navigating both Swiss pensions and Australian Superannuation can be complex and raise many questions for Australian expats: Do you contribute to your Super while not an Australian resident? Are Pillar 2 buy-backs / buy-ins a good idea if you are returning to Australia? Are you eligible for a refund of your Pillar 1 contributions?
Managing both Swiss pensions and Australian Super effectively requires a strategic approach to optimise contributions and withdrawals while minimising tax liabilities. There are many differences in the tax treatment and withdrawal options between Australia and Switzerland that make knowledge in this area crucial for Australian expats looking to maximise their retirement savings.
When it comes to whether or not you should contribute to your Super while not an Australian resident, the standard contribution caps and rules apply universally to residents and non-residents alike, with the exception of certain co-contributions and concessions that may not be available, or applicable, for non-residents.
Foreign employment income (i.e. your Swiss income) is not taken into consideration when calculating the tax savings for personal Super contributions. This means that unless you have sufficient Australian sourced assessable (taxable) income, there is no tax incentive to contribute to your Super.
We take you through all the information you need to make an informed decision on whether maintaining or pausing Australian Super contributions makes financial sense based on your residency status and investment goals, or whether you should prioritise your Swiss pensions, or perhaps both. Our holistic approach ensures that your retirement strategy remains both tax-efficient and aligned with your future plans.
Effective tax planning is essential for Australian expats in Switzerland to preserve and grow wealth efficiently. One of the key opportunities available to Australians while overseas lies in leveraging tax-advantaged investment solutions. These include investments that benefit from tax exemptions or reduced tax rates in Australia, allowing you to retain more of your returns compared a general brokerage account. Understanding these options and integrating them into your portfolio will significantly enhance tax efficiency.
Cross-border tax planning requires a thorough understanding of tax treaties between Australia and Switzerland. By strategically utilising the provisions of these treaties, such as credits for taxes paid abroad, you can minimise the risk of double taxation. This approach ensures that you do not pay more tax than necessary on income and investment gains across both jurisdictions.
Tax-efficient retirement planning is another critical aspect. Balancing contributions to the Swiss and Australian pension systems based on your residency and income status can optimise tax outcomes and enhance your long-term retirement savings.
There are also more complex structures, such as holding companies or trusts, which can also provide tax planning benefits. Depending on your specific circumstances, these structures may allow you to defer tax liabilities or reduce the tax impact on investment income. Exploring these opportunities with expert advice will enable you to ensure compliance with both Australian and Swiss tax regulations.
Naturally, as with all financial planning, tax planning is not a ‘one and done’ exercise. Keeping pace with changing tax laws in both countries is vital. Adjusting your investment strategy in response to new regulations can help avoid unexpected tax liabilities and maintain the tax efficiency of your portfolio. We work closely with you to optimise your tax position across both Australia and Switzerland, ensuring your investments and retirement savings are structured as efficiently as possible.
Property ownership in Australia can be a valuable long-term investment and is particularly popular with Australian expats. The Australian real estate market has shown consistent growth over the years, making property an appealing asset. For many expats, renting out their Australian property provides a reliable source of income, while also maintaining a home base for future returns or extended stays in Australia.
However, there are several important tax implications to consider when owning property in Australia as a non-resident. One significant factor is the ineligibility for the main residence tax exemption if you sell the property while a non-resident. Additionally, most other capital gains tax discounts are not available to non-residents, and if you were to return to Australia and sell the property later, the capital gains tax discount may only partially apply based on the period you were a resident. Rental income is also fully taxable in Australia without any tax-free threshold and is subject to higher non-resident tax rates.
For those planning a return to Australia now or in the future, consider whether holding onto your property until you become an Australian tax resident would be more suitable as, in doing so, you could minimise unnecessary tax charges.
For those planning to remain overseas or in Switzerland, the approach to property ownership and tax management may differ and require a more considered approach. Should you hold onto your existing property? Should you sell? How long will you stay overseas? Could your funds be more efficiently invested elsewhere?
All these are questions to consider (as well as many more!) to ensure that your property portfolio aligns with your broader investment goals and we are here to help.
One of the first steps when planning to return to Australia is to review your tax residency status. This affects how your global income and capital gains are taxed upon your return. Becoming an Australian tax resident again means you will need to report all worldwide income, so understanding the timing and implications is essential for effective tax planning.
Superannuation and Swiss pensions require careful consideration. While Australian superannuation can continue to grow tax-effectively (being taxed internally at 15% on any investment gains each year), Swiss pensions may face Australian tax upon withdrawal or transfer. Planning how to access these funds and integrate them into your retirement strategy is crucial to minimise tax liabilities.
Your investment holdings in Switzerland also need attention. Have you placed these holdings within tax-advantaged (and perhaps tax-free) investment accounts that are only available to you whilst a non-resident of Australia? By integrating these tax-free and tax-advantaged options into your investment plan, you can maximise growth and minimise tax burdens, which can save you hundreds of thousands of dollars over the long term.
With our partners in Sydney, you can also profit from a complete end-to-end solution upon your return. This removes any uncertainty that might come from needing to find a trusted Adviser in Australia. This partnership also remains valuable for our clients who intend to remain long-term, or permanently, in or around Switzerland, as we aim to make any complexities that arise from cross-border financial situations as seamless as possible.
As specialists in financial planning for Australians in Switzerland, we provide expert guidance on choosing and managing your investments, whether that be within tax-free and tax-advantaged accounts or elsewhere. Our tailored strategies help you optimise your investments, minimise tax liabilities, and ensure that your wealth is structured efficiently across both Australian and Swiss systems.
Investing as an Australian expat in Switzerland offers unique tax advantages that can significantly enhance your returns. Unlike in Australia, where capital gains are taxed at your marginal income tax rate, retail investors in Switzerland are exempt from tax on investment gains.
This difference provides an opportunity to grow your investments more efficiently while benefiting from a stable and diverse market environment. Leveraging these advantages can play a crucial role in maximising your financial planning strategy(ies) as an expat.
It can be problematic to take continued advice from any Advisor Firm in Australia, or any previous country of residence in fact, as you will likely lose out on regulatory protections and miss any potentially significant financial opportunities open to you about which your non-Swiss adviser is unaware.
Understanding the regulatory landscape is vital for international investors. Through our private wealth management and investment planning advice service, we only recommend investments that are wholly compliant with regulations in Switzerland and Australia.
This proactive approach minimises risks and prevents unexpected tax liabilities, allowing you to invest with confidence.
Currency management is another critical aspect of international investing. Fluctuations in AUD and CHF can significantly impact your returns. This means that it is not always beneficial to transfer funds from or to AUD to benefit from higher interest rates.
We believe that a disciplined investment process is key to achieving long-term success. Our approach combines thorough research, regular portfolio reviews, and adjustments based on market conditions to keep your investments aligned with your financial objectives.
Navigating both Swiss pensions and Australian Superannuation can be complex and raise many questions for Australian expats: Do you contribute to your Super while not an Australian resident? Are Pillar 2 buy-backs / buy-ins a good idea if you are returning to Australia? Are you eligible for a refund of your Pillar 1 contributions?
Managing both Swiss pensions and Australian Super effectively requires a strategic approach to optimise contributions and withdrawals while minimising tax liabilities. There are many differences in the tax treatment and withdrawal options between Australia and Switzerland that make knowledge in this area crucial for Australian expats looking to maximise their retirement savings.
When it comes to whether or not you should contribute to your Super while not an Australian resident, the standard contribution caps and rules apply universally to residents and non-residents alike, with the exception of certain co-contributions and concessions that may not be available, or applicable, for non-residents.
Foreign employment income (i.e. your Swiss income) is not taken into consideration when calculating the tax savings for personal Super contributions. This means that unless you have sufficient Australian sourced assessable (taxable) income, there is no tax incentive to contribute to your Super.
We take you through all the information you need to make an informed decision on whether maintaining or pausing Australian Super contributions makes financial sense based on your residency status and investment goals, or whether you should prioritise your Swiss pensions, or perhaps both. Our holistic approach ensures that your retirement strategy remains both tax-efficient and aligned with your future plans.
Effective tax planning is essential for Australian expats in Switzerland to preserve and grow wealth efficiently. One of the key opportunities available to Australians while overseas lies in leveraging tax-advantaged investment solutions. These include investments that benefit from tax exemptions or reduced tax rates in Australia, allowing you to retain more of your returns compared a general brokerage account. Understanding these options and integrating them into your portfolio will significantly enhance tax efficiency.
Cross-border tax planning requires a thorough understanding of tax treaties between Australia and Switzerland. By strategically utilising the provisions of these treaties, such as credits for taxes paid abroad, you can minimise the risk of double taxation. This approach ensures that you do not pay more tax than necessary on income and investment gains across both jurisdictions.
Tax-efficient retirement planning is another critical aspect. Balancing contributions to the Swiss and Australian pension systems based on your residency and income status can optimise tax outcomes and enhance your long-term retirement savings.
There are also more complex structures, such as holding companies or trusts, which can also provide tax planning benefits. Depending on your specific circumstances, these structures may allow you to defer tax liabilities or reduce the tax impact on investment income. Exploring these opportunities with expert advice will enable you to ensure compliance with both Australian and Swiss tax regulations.
Naturally, as with all financial planning, tax planning is not a ‘one and done’ exercise. Keeping pace with changing tax laws in both countries is vital. Adjusting your investment strategy in response to new regulations can help avoid unexpected tax liabilities and maintain the tax efficiency of your portfolio. We work closely with you to optimise your tax position across both Australia and Switzerland, ensuring your investments and retirement savings are structured as efficiently as possible.
Property ownership in Australia can be a valuable long-term investment and is particularly popular with Australian expats. The Australian real estate market has shown consistent growth over the years, making property an appealing asset. For many expats, renting out their Australian property provides a reliable source of income, while also maintaining a home base for future returns or extended stays in Australia.
However, there are several important tax implications to consider when owning property in Australia as a non-resident. One significant factor is the ineligibility for the main residence tax exemption if you sell the property while a non-resident. Additionally, most other capital gains tax discounts are not available to non-residents, and if you were to return to Australia and sell the property later, the capital gains tax discount may only partially apply based on the period you were a resident. Rental income is also fully taxable in Australia without any tax-free threshold and is subject to higher non-resident tax rates.
For those planning a return to Australia now or in the future, consider whether holding onto your property until you become an Australian tax resident would be more suitable as, in doing so, you could minimise unnecessary tax charges.
For those planning to remain overseas or in Switzerland, the approach to property ownership and tax management may differ and require a more considered approach. Should you hold onto your existing property? Should you sell? How long will you stay overseas? Could your funds be more efficiently invested elsewhere?
All these are questions to consider (as well as many more!) to ensure that your property portfolio aligns with your broader investment goals and we are here to help.
One of the first steps when planning to return to Australia is to review your tax residency status. This affects how your global income and capital gains are taxed upon your return. Becoming an Australian tax resident again means you will need to report all worldwide income, so understanding the timing and implications is essential for effective tax planning.
Superannuation and Swiss pensions require careful consideration. While Australian superannuation can continue to grow tax-effectively (being taxed internally at 15% on any investment gains each year), Swiss pensions may face Australian tax upon withdrawal or transfer. Planning how to access these funds and integrate them into your retirement strategy is crucial to minimise tax liabilities.
Your investment holdings in Switzerland also need attention. Have you placed these holdings within tax-advantaged (and perhaps tax-free) investment accounts that are only available to you whilst a non-resident of Australia? By integrating these tax-free and tax-advantaged options into your investment plan, you can maximise growth and minimise tax burdens, which can save you hundreds of thousands of dollars over the long term.
With our partners in Sydney, you can also profit from a complete end-to-end solution upon your return. This removes any uncertainty that might come from needing to find a trusted Adviser in Australia. This partnership also remains valuable for our clients who intend to remain long-term, or permanently, in or around Switzerland, as we aim to make any complexities that arise from cross-border financial situations as seamless as possible.
As specialists in financial planning for Australians in Switzerland, we provide expert guidance on choosing and managing your investments, whether that be within tax-free and tax-advantaged accounts or elsewhere. Our tailored strategies help you optimise your investments, minimise tax liabilities, and ensure that your wealth is structured efficiently across both Australian and Swiss systems.
Les complexités du monde financier peuvent sembler intimidantes. Avec la myriade de règles fiscales différentes, les réglementations en matière d'investissement, etc., il peut être extrêmement difficile de savoir si votre argent travaille aussi efficacement que possible pour vous.
C'est là que nous intervenons.
Grâce à notre service de conseil spécialisé adapté aux expatriés australiens, à notre responsable interne des opérations australiennes et à nos partenaires à Sydney, nous connaissons bien les différents types de solutions adaptées à votre situation.
Il n'existe pas de solution unique pour tous. Cependant, étant totalement indépendants, nous avons veillé à ce que notre accès à l'ensemble du marché nous permette de servir les clients d'une manière aussi unique qu'eux.
Pour savoir ce qui vous manque peut-être, contactez-nous. Vous n'avez rien à perdre et potentiellement beaucoup à gagner.
When it comes to retirement, your superannuation may be one of the largest assets outside of your home. Despite this, it is often overlooked or underutilised. It is important that for for every year you are accumulating wealth, you are maximising the potential for tax efficiency. However, it is not always a good idea to contribute to your superannuation fund when an Australian expat in Switzerland. There can be complex legislation to do with your superannuation in Australia, especially whether or not it is necessary to declare this in Switzerland, so it is therefore vital to do all you can to find out how best to make the most of all available opportunities.
Le revenu de retraite peut provenir d'autres sources que votre pension. Une pléthore d'autres instruments de placement peuvent contribuer à votre sécurité financière à la retraite. Nombre de ces investissements alternatifs sont également fiscalement avantageux. Il est également crucial d'examiner et de surveiller vos fonds de pension existants. Sinon, vous risquez de vous rendre compte que vos fonds sont placés dans d'anciens plans, auprès d'entreprises qui ne sont plus ouvertes aux nouvelles affaires et qui ne sont guère incitées à offrir les meilleures possibilités de rendement des investissements. Nous veillons à ce que votre argent travaille le plus efficacement possible pour vous.
Tout d'abord, nous prenons le temps de comprendre vos investissements existants, votre situation financière et vos objectifs à court, moyen et long terme. Nous analysons ensuite les performances de tous vos investissements existants et leur adéquation avec vos objectifs, y compris vos paramètres de risque. Nous pouvons alors vous faire nos recommandations en matière de planification financière et d'investissement.
Toutes nos solutions visent à réduire vos coûts, à améliorer la performance de vos investissements et à vous faire bénéficier de conseils qualifiés et réglementés.
Whether you are already in Switzerland, arriving shortly, or returning home to Australia, contactez-nous dès aujourd'hui.
You can contribute to your Australian superannuation as an expat; however, your contributions may not be tax-deductible if you are not generating taxable Australian income (such as the income you receive from a rental property in Australia).
If you have a Self-Managed Super Fund (SMSF), there are residency requirements, and the fund must meet the “Australian Superannuation Fund” test to remain compliant. This includes keeping the central management and control of the fund in Australia.
You can access your superannuation once you meet a condition of release, such as reaching your preservation age (currently between 55 and 60, depending on your date of birth) and officially retiring. Alternatively, access may be granted when you reach age 65, even if you are still working.
Being an Australian expat does not allow for early access to your superannuation, as the same standard rules apply regardless of your residency. Exceptions, such as severe financial hardship or terminal illness, may allow you early access to your Super under specific circumstances, but these are assessed on a case-by-case basis.
Your Australian superannuation is liable for tax in Switzerland if you are a Swiss tax-resident. Superannuation withdrawals, whether as lump sums or regular payments, are generally added to your taxable income and taxed at your marginal income tax rate.
This is in line with Article 18 of the Double Taxation Agreement (DTA) between Australia and Switzerland, which states that pensions are taxed in the country where you are a resident.
When you move back to Australia, you can withdraw your Swiss Pillar 2 and 3 pensions. However, transferring these directly into your Australian superannuation is typically not possible, as most super funds do not accept such transfers.
Upon withdrawal, your Swiss pensions are subject to withholding tax, which is levied either in your last canton of residence or in the canton of residence of your pension provider. The tax rate varies by canton, with some being significantly more favourable than others.
Additionally, if you are solely a citizen of Australia (i.e. you have no other passports), you may be eligible for a refund of your Swiss Pillar 1 contributions.
You can still be eligible for the Australian Age Pension while living overseas, but this will depend on meeting the eligibility requirements which differ slightly for non-residents, compared to those living in Australia.
The amount you would be eligible to receive is based on a number of factors including; how long you have lived and worked in Australia, the assets and income tests, your marital status, and whether your partner (if applicable) is also eligible for the Australian Age Pension.
Your Australian property and any income it generates is not directly taxed in Switzerland, but it will contribute to your wealth tax assessment, and its imputed rental value (or actual rental income) will be taken into consideration when calculating your marginal income tax rate in Switzerland.
If you sell property in Australia while living in Switzerland, you will be subject to Australian Capital Gains Tax (CGT), even if it is considered your main residence. As a non-tax-resident of Australia, you will also be unable to claim any CGT discounts for investment properties.
The capital gain from selling an Australian property will not taxed again in Switzerland but the gain may be used to calculate your marginal tax rate on your Swiss income.
Buying property in Australia while living in Switzerland can seem like a solid investment, and is a very popular choice for Australian expats.
However, the implications for non-tax-residents can be significant and vary depending on your situation.
If you already own property before moving overseas, the main residence exemption can still apply if you return within six years (if it was rented out) or indefinitely if it was not used to produce income. However, if you sell your main residence while still a Swiss tax-resident, you lose this exemption and pay the full CGT amount.
If you purchase an Australian property while living in Switzerland, you generally cannot claim it as your main residence until you physically move in. This means that when selling the property after returning to Australia, the years spent overseas would not be tax-exempt.
The 50% CGT discount on Australian investment properties held for more than 12-months only applies to the years you were an Australian tax-resident and only if you then sell as a tax-resident of Australia. This is irrespective of the preceding paragraphs.
Other factors for consideration include no tax-free threshold on rental income, stricter lending criteria for non-residents, currency risks when repaying an AUD mortgage whilst earning in CHF, and additional land taxes in some states.
While Australian property can be a valuable long-term asset, it is crucial to weigh the costs, tax implications, and alternative investment options before committing.
Yes, as a Swiss tax-resident, income from your Australian investments, such as dividends or interest, is liable for tax in Switzerland. However, any taxes paid in Australia may be able to be credited under the Double Taxation Agreement (DTA) between the two countries.
A deemed disposal occurs when you treat your assets, such as an investment portfolio, as if they have been sold without actually selling them. This process requires you to declare any capital gain or loss up to the point at which you make a deemed disposal, and pay tax on the gain.
This is a popular option for expats prior to leaving Australia, as Switzerland can offer a more tax-efficient environment for your assets.
If you do not sell your assets or make a deemed disposal, the ATO may continue to classify them as Taxable Australian Property (TAP) even when you are no longer an Australian tax-resident. This means that all future growth, up to the point of sale, may be liable for Capital Gains Tax (CGT) in Australia.
If you were to sell the assets while a tax-resident of Switzerland, you would not be eligible to receive any of the 50% CGT discount on assets held for over 12-months, as this is only available if you were to sell the assets as an Australian tax-resident.
Additionally, if you eventually sell the asset after returning to Australia, you will still be taxed on the growth that occurred while you were a non-resident, but without access to the 50% CGT discount for those years you were overseas.
A deemed disposal is not available on Australian immovable property (e.g. real estate), which always remains TAP.
While Australian bank accounts can offer higher interest rates, it is important to consider currency exchange risks, tax implications in Switzerland, and the concept of interest rate parity.
Interest rate parity is an economic principle that suggests higher interest rates in one country often reflect currency risk, accounting for the potential fluctuations and possible depreciation of AUD relative to CHF which in turn could offset the benefit of a higher interest rate.
If you intend to live, work and spend in Switzerland for the foreseeable future, holding your savings in AUD exposes you to these currency fluctuations. Even if an Australian account offers a higher nominal return, a weakening AUD could erode the value of your savings when converted back to CHF.
Additionally, you should factor in exchange fees and international transfer costs, which can further impact the effective return on your savings when moving funds between currencies.
Read our article on holding foreign currencies to get a higher interest rate here for more information
Patterson-Mills Sàrl is powered by Lawsons Network and operates as an Appointed Representative. We benefit from their regulatory infrastructure and cutting-edge software, enabling us to safeguard and enhance your wealth. Lawsons Network AG, Company No. CHE-394.490.386, Rue Neuve-du-Molard 19, 1204 Genève, Switzerland. Lawsons Network AG is registered as an Insurance Intermediary with the Swiss Financial Market Supervisory Authority (FINMA – F01379525), a member of the Client Advisors register at Association Romande des Intermédiaires Financiers (ARIF – 32974) and affiliated to Organisme de Surveillance pour Intermédiares Financiers & Trustees (SO-FIT) as an SRO – Affiliate No. 1202.
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