[cmutel]

Since we're having the semi-annual "how do taxes work in other countries" thread, here is my experience as an American living in Switzerland. Though I have been here a while, I still find it interesting and a little weird.

At the beginning of the year, you get a bill for that year based on what they think you will owe. This bill is due on October 31, i.e. you need to pay your estimated income tax before you have earned all that income. This is especially strange because most people will get a 13th month salary at the end of October (your annual salary is split into 13 months, the extra comes in time for Christms presents?). You are expected to save adequately to be able by the end of October.

Banking secrecy is not dead in Switzerland. There are no longer anonymous accounts, and banks share information with foreign governments. However, there is banking secrecy between the banks and the government. On the other hand, we pay a wealth tax each year (it's small), so you need to declare each account and how much you had in it on December 31.

To create an equal playing field between house owners and renters, house owners pay an imputed rent cost for how much they would have paid in rent for their house. This is added to their income before taxes are calculated. In my case, this means my assessed income is around 25k higher than it otherwise would be.

There is no automatic form filling in my state, but there is free tax software (Java app which runs everywhere), and it is pretty easy to use. If you have questions, the local tax office will nicely respond via "secure email" in 1-2 days.

Taxes are very progressive and family friendly. With 4 kids and one income we pay 6.5% combined local/state/federal on income of around 120k (plus imputed rent).

There are no property taxes. For the wealth tax, most people who own houses never pay off their mortgages. They will typically have a mortgage for 50% of the house value (which can be quite high, a typical house where I live is between 800k and 1000k, and more in bigger cities). The interest can be deducted, and the mortgage amount from the wealth tax.

[sschueller]

You forgot the part where you need to also file and pay US taxes although you may no longer be living there, have any income or assets there but you still need to pay as long as you hold a citizenship or green card.

[valarauko]

> you still need to pay as long as you hold a citizenship or green card.

wait, I thought this only applied to US citizens, not Green Card holders

[Leherenn]

Are you sure about the dates? As far as I know, you need to file your tax declaration for the previous fiscal year by mid-March, and pay before the end of March. But as you say, you're supposed to pre-pay most of it before based on an estimation (though you have to do the estimation yourself, not the government). You don't have to pay all at once though, you can pay in monthly installments with no penalties.

[throwaway2037]

Which canton? As I recall, Zug is near Zürich and has very low tax rates. Many highly paid professionals make the daily commute.

[cmutel]

Aargau, normally considered higher tax, but we have four kids at home.