Ask a tax advisor on the topic of Double taxation

Depot in Germany, work and life in Switzerland.

April 9, 2019 | 50,00 EUR | answered by Steuerberater Knut Christiansen

Good day,

For several years now, I have been living and working in Zurich (B-permit / lump-sum taxation, employed on a fixed-term contract, gross salary 87,500 CHF). I have not deregistered my residence with my parents in Germany (I came to Switzerland for my master's studies, and at that time it made no difference). It is likely that I will stay in Switzerland for several more years, perhaps indefinitely.

I have inherited around 200,000 euros in a depot at a German bank, mainly in various stocks. In addition, I save a fixed amount of around 1,000 euros per month, which I invest with a (different) German online bank. I cover my expenses with my salary, but they are otherwise quite high due to the location.

What is the best long-term approach from a tax perspective?
Does deregistering my residence in Germany make a difference from a tax perspective?
What should I consider with regards to the depot?

Warm regards,
Anonymous

Steuerberater Knut Christiansen

Hello and thank you for your inquiry, which I would like to answer as follows in the context of an initial consultation.

As long as you have your residence in Germany, capital gains taxes will likely be deducted from your income from capital assets that you earn in Germany. However, the tax would be considered paid on the capital gains (withholding tax).

If you deregister your residence in Germany, you could request that the tax deduction be waived from your banks (https://www.bzst.de/DE/Steuern_International/Kapitalertragsteuerentlastung/Kapitalertragsteuerentlastung_node.html). You would then need to declare this income in Switzerland.

If you do not have any other income in Germany, you would not need to submit a tax return in Germany.

I hope this answers your question, if not, please feel free to ask for further clarification.

Kind regards,

Knut Christiansen
Tax Advisor