Advanced investment articles for Swiss residents
Historically, buying your main residence in Switzerland has been a good investment, and it still can be. It does, however, involve risk, as there is a great deal of leverage involved.
To easily increase the profitability of this purchase, using even more leverage, you need to know how to play with your Pillars 2 and 3a.
Privileged taxation:
capital gains & gift tax
A unique pension system:
Pillars 2 and 3
A wide choice
of investments:
the best of all worlds
from the European Union
and the United States
A hyper-local
tax system
Historically, buying your main residence in Switzerland has been a good investment, and it still can be. It does, however, involve risk, as there is a great deal of leverage involved.
To easily increase the profitability of this purchase, using even more leverage, you need to know how to play with your Pillars 2 and 3a.
The European SCPI is a little-known way to invest in real estate. It suits almost everyone and can be used to generate passive income or for building wealth. In building wealth, it's a great complement to the stock market because it lowers volatility and increases resilience to inflation.
Splitting Pillar 3 is far from being the most important thing. Four strategies help optimize Pillar 3 by at least 100k: contribute more to Pillar 3, contribute less to Pillar 2, choose Pillar 3 carefully, and take advantage of opportunities to transfer Pillar 2 to a vested benefits account.
Everything about taxes in these 4 cantons: income tax, tax on dividends, wealth, corporate tax, capital gains tax, 2nd/3rd pillar withdrawal tax. Switzerland's minimum taxation belongs to a few Schwyz communes. Zug is a close second. It's very expensive to live in Zürich or Geneva.
As a Swiss resident, you don't pay much tax. The best solution for you depends on: whether you prefer to invest monthly or annually, in your name or your child's, the amount, and what's easiest for you.
If you invest well from birth, at age 40 your child can expect to have in today's money: 150k euros / francs for a monthly effort of 100 - 1.5 million for an effort of 1000.
