Bank account in Switzerland
September 17, 2012 | 30,00 EUR | answered by Michael Herrmann
Due to the uncertainties surrounding the Euro, I have invested a small sum of money in Switzerland. This money comes from my former employment in Munich, as I am now retired. This means that the money was diverted from my already taxed income. There will soon be an agreement between Germany and Switzerland. My bank in Switzerland has already contacted me regarding this. All of my bank details will be shared with Germany. Some questions arise:
1. How will my money be viewed by the German tax office, as black money?
2. What consequences could this have for me?
Dear inquirer,
First of all, thank you for your inquiry, which I would be happy to answer based on the information provided and in the context of your initial consultation. The response is based on the description of the situation. Missing or incorrect information about the actual circumstances can affect the legal outcome.
If you have a residence in Germany, you are subject to unlimited tax liability in Germany. This means that you are taxable in Germany on your worldwide income. Income that falls under German tax law as capital income is therefore taxable in Germany, regardless of where the account is held. The double taxation agreement with Switzerland also does not make Swiss capital income tax-free in Germany.
Therefore, it is not prohibited to have an account in Switzerland and earn capital gains there. However, it is illegal to conceal the taxable income earned from the tax office. Capital gains are taxable for singles from €801 and for married couples from €1,602.
If you have had taxable income in Switzerland in recent years, you should consider filing a voluntary disclosure to avoid penalties. For this, the advice of a local expert (tax advisor or specialist lawyer in tax law) is necessary.
The mentioned tax agreement with Switzerland is currently only agreed at the government level. Especially on the German side, the entry into force is highly doubtful due to the necessary approval of the Bundesrat.
I hope that these explanations have provided you with a sufficient overview of the situation within the scope of your inquiry and this initial consultation, and remain
Yours sincerely,
Michael Herrmann
Dipl.-Finanzwirt (FH)
Tax advisor
