Moving involves many changes, including significant modifications to your tax situation. One crucial aspect is informing the tax authorities of your new address to ensure you pay your taxes in the right place. Here is a guide to help you navigate through these tax changes.
How to inform the tax authorities of your change of address?
When you move, it is imperative to inform your local municipality of your change of address. In Switzerland, you must notify the residents’ service of your new municipality. This notification not only updates your personal information but also ensures that your tax obligations are correctly transferred. This allows you to pay your taxes in the appropriate jurisdiction, avoiding potential errors and administrative complications during your tax declaration.
Moving to another canton: Where to pay your taxes?
If you move from one canton to another during the year, your tax liability is transferred to your new canton of residence in most cantons. The reference rule is that you will be taxed in the canton where you reside on December 31 of the current year. If you have already paid taxes in your previous canton, the previous canton will proportionately reimburse you for the period you no longer resided there.
This transfer can significantly impact your tax burden since tax rates and allowable deductions vary from one canton to another. It is therefore crucial to understand the tax implications of your move and plan accordingly.
Taxation when moving from abroad to Switzerland
If you move to Switzerland from abroad, you will only be subject to Swiss taxes from the date of your arrival in the country. Until that moment, your tax obligations depend on the tax laws of the country you are leaving. Upon your arrival in Switzerland, you must declare your presence to the municipality of your new residence, and you will then be subject to the tax regulations of that canton.
Leaving Switzerland: What happens?
When you leave Switzerland to settle abroad, your tax liability in Switzerland ends on the date of your departure. However, for the year of your departure, you remain taxable in Switzerland up to that date. Your taxable income for this period is calculated based on the income earned from January 1 until your departure date. After your departure, your tax obligations will conform to the laws of the country of your new residence.
