Reply to: Swiss dilemma

[GitMaster69]

this massive change scares me, I'm bit stalling and waiting for other offer to come through hopefully today. I like London and I'd rather stay here for quality of life and certain comforts I got used to (like daily commute in crowded tube).
However lack of offer means - Zurich here I come....

UK is losing great talent because of IR35 ;-)

[BigDataPro]

I like your anecdote. My experience of Denmark is that the Danes will gasp audibly, look around to make sure nobody is watching and then join you crossing the road with a cheeky smirk.

True. When Danes see some one resting their feet on a seat, they do not hesitate to "Tell them Off!". Same goes with quiet coaches as well. Both of which I really admired.

[Old Greg]

Would just like to agree with the other posters regarding Zurich as a place to live. The lifestyle is fantastic. Andermatt, Gotthard Pass (think Tour of Switzerland, and one of the most spectacular cycling / motorbiking routes in the world), Interlaken are all around 1.5 - 2 hours away. Ideally you would be on 1000CHF+ per day, but any rate in CHF is mitigated by the weak GBP for the foreseeable future.

Either Zurich or the "Socialist Republic of Geneva" are probably 2 of my favourite places to consider living if money is no object.

I'll leave you with an anecdote that makes me smile, that sums up the difference between Germans and Swiss.

In Germany, many people stand patiently by the side of the road and wait for the green man before crossing. If you attempt to cross, someone will 'tut' or stare disapprovingly at you.

In Switzerland, someone will physically pull you back, because they will assume you were not watching the lights.

I like your anecdote. My experience of Denmark is that the Danes will gasp audibly, look around to make sure nobody is watching and then join you crossing the road with a cheeky smirk.

[lecyclist]

Would just like to agree with the other posters regarding Zurich as a place to live. The lifestyle is fantastic. Andermatt, Gotthard Pass (think Tour of Switzerland, and one of the most spectacular cycling / motorbiking routes in the world), Interlaken are all around 1.5 - 2 hours away. Ideally you would be on 1000CHF+ per day, but any rate in CHF is mitigated by the weak GBP for the foreseeable future.

Either Zurich or the "Socialist Republic of Geneva" are probably 2 of my favourite places to consider living if money is no object.

I'll leave you with an anecdote that makes me smile, that sums up the difference between Germans and Swiss.

In Germany, many people stand patiently by the side of the road and wait for the green man before crossing. If you attempt to cross, someone will 'tut' or stare disapprovingly at you.

In Switzerland, someone will physically pull you back, because they will assume you were not watching the lights.

[NotAllThere]

The tax on contract income was 30%.

It depends where you live, whether you have any dependents - and whether you register for church tax. (And how much your income is, of course).

[Andy2]

Switzerland is a great place to live and work. I did a 6 months contract in zurich but then came back to UK because family was here in UK and i was getting knackered with weekly commute. I could move the family there but the schools are german medium so it was a deal breaker.
The tax on contract income was 30%. Zurich is expensive and you will get a studio flat only for 2000 CHF/month. Eating out is also expensive.

[BlasterBates]

Have you considered taking limited route blaster?

I left Switzerland several years ago but when working there I never considered it. As NAT points out unemployment benefit is incredibly generous in Switzerland. After a year you qualify. The pension contributions do give you a decent pension, so the contributions give you value for money. The main deduction in addition to tax is for the pension.

[NotAllThere]

Have you considered taking limited route blaster?

It doesn't really gain you much. I had multiple concurrent clients and some commission deals, so it worked for me. With a good accountant, you can do some income levelling with dividends. Generally I think it's not worth the effort. One issue is that if you're laid off (having accrued sufficient AHV payments), it's harder to get the unemployment benefit of 80% of your previous salary (capped at ~140K).

[Katalyst]

Keep in mind that when they quote 850/day in Switzerland. that's before they take out all employee and employer-side taxes. It's not a huge amount, but it's not bad. It's a great place to live, and if you have young children, you'll love it - Switzerland is great for families.

[GitMaster69]

My general estimate was based on payroll (65-70% of gross)

Probably you'll be on payroll. Switzerland has a similar rule to IR35, which they enforce at the client, so some companies simply place all contractors through a payroll company.

I would start anyway on payroll, as it will be complicated trying to setup a company.

I would definitely do your own sums. It depends on many things. I just gave you a ballpark figure to start with. Cantonal tax can make a difference, e.g. commuting from Zug. Your age makes a difference as the amount you pay in to the pension goes up as you get older. I would get a quote from a payroll company.

Steuerrechner Schweiz - www.ch.ch

Have you considered taking limited route blaster?

[BlasterBates]

Umbrella or via limited? is it possible for newstarter to force hand to go through limited route? I haven't asked yet...

My general estimate was based on payroll (65-70% of gross)

Probably you'll be on payroll. Switzerland has a similar rule to IR35, which they enforce at the client, so some companies simply place all contractors through a payroll company.

I would start anyway on payroll, as it will be complicated trying to setup a company.

I would definitely do your own sums. It depends on many things. I just gave you a ballpark figure to start with. Cantonal tax can make a difference, e.g. commuting from Zug. Your age makes a difference as the amount you pay in to the pension goes up as you get older. I would get a quote from a payroll company.

Steuerrechner Schweiz - www.ch.ch

[GitMaster69]

850 gives very roughly about CHF 12000 net Get a quote though because of your personal circumstances, holidays etc

You can check on https://www.homegate.ch/de for flats, for a family starting at CHF 3000 upwards.

check on Vergleichen und sparen – comparis.ch for medical insurance

This will cost you at least a few hundred because you have to insure the whole family. You need to get familiar with the options.

Once those costs are covered then it's generally more expensive than the UK but you can usually find an inexpensive option if you shop around.

Umbrella or via limited? is it possible for newstarter to force hand to go through limited route? I haven't asked yet as I'm gathering info about it (and silently waiting for second offer to come through for a bit of leverage)

[BlasterBates]

850 gives very roughly about CHF 12000 net Get a quote though because of your personal circumstances, holidays etc

You can check on https://www.homegate.ch/de for flats, for a family starting at CHF 3000 upwards.

check on Vergleichen und sparen – comparis.ch for medical insurance

This will cost you at least a few hundred because you have to insure the whole family. You need to get familiar with the options.

Once those costs are covered then it's generally more expensive than the UK but you can usually find an inexpensive option if you shop around.

[NotAllThere]

Money is not a problem , I'm relatively well off. I won't ask if it's worthwile , because if it wasn't, an estabilished contractor like yourself wouldn't do it.
reading on corporate taxes now.. thanks NAT

If you're already well off, then come on over! Actually. Don't. I don't want the competition.

[GitMaster69]

You need to invest 20K in it (at least 10K of which must be cash), and it costs about 3K to set up.

Money is not a problem , I'm relatively well off. I won't ask if it's worthwile , because if it wasn't, an estabilished contractor like yourself wouldn't do it.
reading on corporate taxes now.. thanks NAT


edit ... actually i'll ask... is it worthwile for 850pd 3 year gig?