Information on the transfer of residence to Switzerland
The bilateral treaties between Switzerland and the EU came into force on 1 June 2002. Through the new general conditions, there are many different aspects that have to be considered in regard to residence/stay questions and flat-rate taxation in Switzerland.
If you have still received income in your present country of residence from - commercial activities – free-lance work – agriculture or forestry, account must be taken of removal taxation, as it is termed. This tax applies when the taxpayer changes from a full tax liability to a limited tax liability or when his circumstances change to such an extent that the person in question is no longer liable for tax on any income whatsoever in the country of residence. Full tax liability – what does this mean? The term is to be interpreted according to the national law in question and means that all the income achieved nationally or worldwide by a person are subject to earnings or income tax in the country of residence, no matter where the revenues were actually earned.
At all events, it is advisable to get advice in the individual case from local experts and to find out exactly what the consequences of removal taxation are.