“Is it advisable to open an account in a small bank in Switzerland, rather than one with branches in
Question from an US-based IM Member:
Q: “Is it advisable to open an account in a small bank in Switzerland, rather than one with branches in other countries of the EU due to the 30% with-holding tax?”
A (by Terry Coxon): Interest earned by foreign investors from Swiss sources is subject to withholding at a rate of 35%, so keeping money on deposit at a Swiss bank is not a way to earn tax-free interest. A Swiss bank can put your money into a non-Swiss money market fund or other vehicle that earns interest without withholding.
If you go to a Swiss bank for that or any other service, choose a bank that does not have any branches or other important operations in your home country.
Terry Coxon is the president of Passport Financial, Inc., a publishing company specializing in international financial planning, and a senior editor for Casey Research. Terry is the author of Keep What You Earn, Using Warrants and the co-author (with Harry Browne) of Inflation-Proofing Your Investments. He edited Harry Browne’s Special Reports for its 23 years of publication and all of Harry Browne’s investment books since 1974.
PLEASE NOTE: The information contained within this article is based on the best research we could find as of the date of publication. However, the world changes fast and information can become out of date relatively quickly. So, two points… First, before undertaking any action described in this material, please conduct your own due diligence and verify all facts. Second, if you happen to spot an out of date fact or figure (or even suspect something is out of date or false), simply get in touch with us and we'll look into it. International Man is a network made up of some very smart people – tax specialists, accountants, lawyers, analysts and many other talented individuals. As a group, we can create and maintain a very accurate and highly actionable resource for internationalization.