Zurich Hits Rich Foreigners

February 10, 2009 by Pegagus Pendrean

What’s wealth got to do with it? Tina Turner, like other wealthy foreigners, lives in canton Zurich where she may soon pay more in taxes (Reuters)

I have just read an interesting article entitled Zurich Hits Rich Foreigners, like Tina, in the pocket.

Controversial tax breaks for foreigners, particularly the lump sum tax, regularly make the headlines in Switzerland and abroad. There are 137 people who are granted lump sum taxation in canton Zurich – the most populous Swiss region which includes the city of Zurich.

Voters in canton Zurich decided last Sunday on a proposal by the political left to scrap the flat tax rate for wealthy foreigners. Consequently, Canton Zurich has closed its doors to wealthy foreigners who benefit from tax breaks after voters decided to end the “unequal” practice on Sunday. Some 52.9 per cent of the electorate – or 216,000 people – backed an initiative from the leftwing Alternative List political group to end “tax privileges for foreign millionaires”.

The move may prompt rich individuals already living in Zurich to take their homes and income elsewhere. However, experts do not believe Zurich would suffer as much as other cantons, such as Geneva or Valais, that rely more heavily on such tax receipts to fund services.

Interesting? Then click on Zurich Hits Rich Foreigners, like Tina, in the pocket…to read the full article.