Tax aspects of moving to Switzerland
Exit tax and immediate consequences
Taxpayers leaving France for Switzerland may be subject to exit tax. This measure is aimed at individuals transferring their tax domicile outside France, while holding significant movable assets. It applies in particular to unrealized capital gains on financial securities held at the time of departure. A deferral of taxation can be requested under certain conditions, and an exemption is possible if the securities are not sold within five years.
To avoid any difficulties with the authorities, it is essential to anticipate these consequences right from the start of the process.
Cantonal specificities and lump-sum taxation
Switzerland has a decentralized tax system, with each canton applying its own rules. Some cantons offer an advantageous system for wealthy individuals, known as forfait fiscal. This mechanism allows taxation on the basis of lifestyle rather than actual income, subject to eligibility conditions.
Arbitrating between cantons is therefore a strategic step. It is advisable to compare plans before departure, to structure an optimized installation.
Teleworking and cross-border taxation
Telecommuting between France and Switzerland raises specific tax issues. A bilateral agreement authorizes up to 40% teleworking in France, without jeopardizing frontier worker status. Beyond that, taxation in France becomes a possibility.
Employers must also ensure that they comply with registration requirements. It is therefore essential to understand the tax obligations of expatriates and non-residents to ensure the security of this hybrid working arrangement.
Tax residency criteria
Determining your tax residence is the first step in avoiding the risk of double taxation. According to article 4 B of the French General Tax Code, a person is domiciled for tax purposes in France if he or she has his or her home, principal activity or center of economic interests there.
Moving to Switzerland is not enough in itself: you need to determine your tax residence before you leave to ensure a clear legal and tax transition.
Tax strategies to optimize expatriation
Anticipating tax consequences before you leave
Anticipation is the key to successful tax expatriation. It enables us to identify potential capital gains to be crystallized, to reconfigure asset portfolios and to study the conditions of eligibility for certain Swiss tax schemes. This preliminary step reduces the risk of post-departure tax adjustments.
Exemptions and tax breaks
Switzerland offers specific exemptions and regimes depending on the type of income received and the canton of residence. Certain tax treaties also enable double taxation to be avoided, provided that sources of income are properly structured.
For entrepreneurs and shareholders, these schemes can be a significant lever for optimization.
Optimizing the tax status of expatriate entrepreneurs and executives
Company directors and majority shareholders need to adapt their situation before leaving. A misallocation of functions or a poorly calibrated shareholding can lead to requalification or undue taxation. It is therefore advisable to restructure organizational charts and anticipate the taxation applicable to dividends, with particular attention paid to the taxation of dividends for non-residents.
Wealth structuring and inheritance in the event of expatriation
Expatriation is also an opportunity to rethink the structuring of your assets. This may involve setting up holding companies, drafting appropriate inheritance clauses and arbitrating between investment vehicles (life insurance, real estate, digital assets).
These measures contribute to a global vision of the transfer of ownership and help to secure the situation by avoiding a tax reassessment during expatriation, but also to anticipate the tax impact of a return after expatriation.
Tailor-made tax support for expatriates and impatriates
BERGEOT PAOLI Associés can help you structure your departure, from analyzing your tax residence to ensuring that your portfolios are compliant. Thanks to a network of specialized partners, each transition is prepared in compliance with French and Swiss legislation, with particular attention paid to cross-border taxation of individuals.