Pay Less Tax When You Retire to This Country Dear International Living Reader,Lucerne--and the entire region around Switzerland's Vierwaldstaetter Lake--is one of Western Europe's safest and cleanest havens… with breath-taking mountain scenery… the world's best public services… and, because this is Switzerland, potentially huge tax breaks for retirees. In Switzerland, if you're a retiree (and a resident) you pay tax based not on your actual income or assets, but on your lifestyle (calculated as five times the annual rental value of the property you reside in). The tax rate varies depending on the city and canton you live in. A prominent example of a foreigner who has taken advantage of this tax break is Formula 1 racing tycoon Bernie Ecclestone, estimated to have a personal fortune of 5 billion Swiss Francs ($4 billion). Because his residence in Switzerland is relatively modest, he is taxed on 781,000 Swiss Francs ($630,000). Could you benefit from a similar reduction to the amount on which you pay tax? Remember, it's easier to get residency in Switzerland as a retiree--if you don't work but live off investment income or a pension, Switzerland's normally strict residency restrictions don't apply. I'll have more for you on the benefits of Switzerland next week (whether you're a retiree or not…whether you want to live in Switzerland or not). Watch this space. Sven Lorenz
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