Moving to Switzerland entails a complete reconfiguration of the applicable tax rules. Tax residence, nature of flows, treatment of French income: each parameter must be analyzed to organize the transition. The Franco-Swiss tax treaty provides a framework for taxation rights, but its application requires a detailed analysis of specific situations. Whether for professional activities, investments, dividends, pensions or capital gains, a cross-functional approach helps to limit the risk of double taxation, adapt declarations to the obligations of each State and optimize the asset structure.
Business income: linkage and cross-border effects
In principle, income earned in Switzerland is taxed locally. However, certain situations maintain a tax link with France: employment contracts that have not been terminated, occasional assignments in the country, services provided remotely or regular telecommuting. These situations can lead to double taxation if the tax residence has not been clarified, or if the scope of flows has not been segmented. For the self-employed, the rules governing the territoriality of profits and social security contributions vary according to the actual place of business. Precise mapping of workflows enables you to anticipate the applicable regimes and avoid requalifications.
Tax treatment of dividends and asset flows
Dividends received from a French company by a Swiss resident are still subject to a withholding tax. The treaty allows this to be capped at 15%, subject to the filing of forms 5000 and 5001. A tax credit may be granted in Switzerland, in accordance with cantonal rules. When the taxpayer holds a significant share of the capital, particular attention must be paid to the relationship between French corporate taxation and the Swiss shareholder regime. The legal set-up (holding company, parent-daughter status) has an influence on the overall level of taxation and on cross-reporting obligations.
Pensions and annuities: separate schemes
Public pensions are still taxed in France, regardless of place of residence. Private pensions may be taxed in Switzerland if the beneficiary is resident there. Supplementary schemes, life insurance contracts and PERs are subject to specific rules: life annuities may be taxed according to their taxable fraction or their constitutive capital. You should also check local practices regarding withholding tax and possible exemptions. In the event of your return to France, certain sums received during expatriation may be subject to retroactive reinstatement.
Asset disposals and capital gains: arbitrages and declarations
The sale of shares or real estate located in France remains taxable in France, even after expatriation. In the case of securities, exit tax may apply at the time of departure, with deferred payment under certain conditions. In the case of real estate, capital gains are systematically taxed, except in the case of exemptions linked to use or length of ownership. In Switzerland, capital gains on securities are not taxed for private individuals. This difference in treatment may influence the strategy of sale or donation. The timing of transactions (pre-departure sale, deferred sale) must be coordinated with the residence criteria adopted by the two countries.
Cross-border tax returns and forms
Expatriation changes the nature of reporting obligations. Form 2047 is used to report income received outside France, specifying the tax treatment according to the treaty. Form 3916 is required for all bank accounts held abroad. Failure to declare assets can result in substantial fines, regardless of the amount held. In Switzerland, declarations of assets, business income, dividends and gains must be reported in accordance with cantonal rules. The coordination of declarations between the two countries requires rigorous documentation, in particular to justify the treatment of mixed income or the allocation of deductible expenses.
Deadlock situations and amicable procedures
When income is taxed in both countries, or tax residence is disputed, a mutual agreement procedure can be initiated on the basis of the treaty. This enables the French and Swiss administrations to reach a joint decision on the apportionment of tax rights. It requires a well-founded case file, consistency in previous declarations and justification of economic and family ties. At the same time, a claim for tax refund or credit may be made to the tax authorities in the country of residence, depending on the applicable agreements. Failure to regularize the situation may result in surcharges and interest on arrears.
Asset compliance and reporting watch
The change of residence requires a review of asset structuring: bank accounts, life insurance policies, company shares and assets held must be correctly attached to the relevant jurisdictions. Inheritance strategies, management mandates and the articles of association of family companies also need to be adapted. Any omissions or discrepancies between bank data, tax declarations and notarized documents may be identified during an audit or automatic exchange of information.
Comprehensive support after expatriation
BERGEOT PAOLI Associés offers tailor-made support, from analysis of the tax residence to optimization of asset flows and coordination with banking, notary and accounting partners. Each situation is studied individually, in compliance with French and Swiss tax law, with particular attention paid to the consistency of declarations and the traceability of choices made. This support covers all issues relating to personal taxation in a cross-border context, whether it involves organizing a departure, securing income or anticipating a return.