Contracting in Switzerland

[ccie]

I have been offerred a role in Zurich, I am an IT Contractor.

I have worked over Europe before using my UK based LTD Company and have never had any issues.

I have been advised that I need to go through an Umbrella Company in Switzerland.

I dont know what my take home pay will be but approx 30% of my income will be living expenses, amongst other things, can I still put this through as an expense in Switzerland.

Hypothetically speaking if i earn 10,000 Francs per month and my living expenses are 2500, plus 500 for other expenses what is likely to be my take home pay each month?

Any know of any other options to do this?

Are there suggestions to live in a lower tax rate canton not too far from Zurich?

All advice and help will be greatly appreciated

[NotAllThere]

Go to English Forum Switzerland and read the sticky posts carefully. You cannot work via your UK ltd co if you are resident in Switzerland.

Take home on 10'000 CHF gross, is ~1'200 CHF in Zürich. However, in common with brollies in the UK, out of your 10'000 CHF, you must also pay employer's social contributions, pension, various insurances and the brolly fee.

Read this thread carefully: http://www.englishforum.ch/finance-b...erage-tax.html

[stek]

Zug is well cheaper, 120k per annum is normal for permie, more like 200k for contract is normal, i'd ask for rate revisit....

CH can be expensive, in Zurich I paid 8 quid a pint and 20 quid for (crap) fish and chips, but Migros and Coop is cheaper, most things same plus a bit as UK apart from fresh meat which will scare you silly.

But basically not a cheap place to live unless you are very careful....

[sunflower]

Some of those pension contributions via the system can leave you with a nice little pot though if you were there long enough.

You will have to work via an umbrella, usually your agent does that. Ask the agent for a salary specification based on your rate. They should give you payroll services as part of the deal. You should not have to go to a payroll company which will demand a percentage of your invoice per month.

Zurich is expensive. It is not easy to find a place to stay. You can save a bit by going outside of Zurich but you will have to pay train fares. Get yourself a Halbtax abo for the trains. Costs 160 CHF per year or so but well worth it if you want to explore and you can use it on the trains to the airport.

Zug has a cheaper canton tax and you can save 5% by living there.

Be wary of double taxation issues with the UK.

Spartan warned about this in another thread and I quote him here (my accountant confirmed this):

"I've had telephone tennis with HRMC and this is my understanding of it. You have to the leave the UK on a contract of employment that will encompass a full UK tax year to not be able to have to pay tax in the UK. So if you leave now or later this year you wouldn't be able to return to the UK to work till April 2014 without having to pay tax under the dual taxation agreement they have with the Swiss government."

So you may think you have a decent wage, but the UK tax authorities can claim a percentage of it.

Good luck with your contract

[Brussels Slumdog]

I have been offerred a role in Zurich, I am an IT Contractor.

Hypothetically speaking if i earn 10,000 Francs per month and my living expenses are 2500, plus 500 for other expenses what is likely to be my take home pay each month?

There is a standard deduction of CHF 1500 per month so the remaining CHF1500 would come out of your net salary
Based on my 2010 Zurich calculator
You would net about 7445 less the 1500 other expenses less about 300 private health insurance so you profit would be about 5645
You would need to declare about 8000 to the UK tax authorities less maybe the 1500 + 300 other expenses