Municipal tax competition in Switzerland
Tax competiton is a Swiss principle. It also applies between Kantons and Municipalities. Anybody liable to pay taxes for 150'000 Francs per year in Kreuzlingen as a married free-lancer, pays income taxes amounting to about 28'000 Francs. Two kilometres away, in the neighbouring Bottighofen, they are once again almost 6'000 Francs less.
Meanwhile, immigration agencies are dealing with an increasing inquiry of foreign free-lancers and also working employees, because it has become easier for EU nationals since June last year to settle in one of the 26 Swiss Kantons, if they do not become a burden to the state and if they have an adequate medical cover.
Higher take-home pays thanks to lower deductions:
Swiss employers can attract qualified foreigners with higher salaries because their employees cost less before tax. More net in the pocket - for example, the German national Hartmut Issel belongs to the persons sought after. Well-trained he took the plunge in the Zurich UBS Bank.
He is wrestling with the high costs of living, e.g. for dwelling or goods and services of daily life, however, he must carefully consider what counts stronger finally. In this regard, the result is clear for Issel. The tax benefits are predominant. For example, while filling up with Diesel Hartmut Issel enjoys Swiss stability. Since 1997, in Germany a tax plus of 48.4 per cent due to ecological and mineral oil tax while taxes on fuel in Switzerland remain unchanged.
Taxes are further reduced:
ZAnd something else is completely different in Switzerland compared to other countries. Returning something to the tax payer is a binding budget law of the Swiss Confederation. The result: In Switzerland sometimes even the tax rates fall before municipal overages are spent for Superfluous show-off buildings or swimming pools. Observers particulary refer to Zug, the new home town of Boris Becker. Last year the income tax incredibly dropped once again from 6.29 to 5.10 per cent.