Switzerland. Is this true?
- Thread starter bearice
- Start date
The person who has given me this information is very disturbed about multi-billions being deposited in Switzerland. I told him that money deposited in Switzerland is 100% legal but he is not willing to accept it. Also if Switzerland and Swiss banks does not pay interest/profit why is 35% of world money deposited in Switzerland?
"35% of world money deposited in Switzerland" is complete nonsense.
Here is a list of the top 50 banks in the world by assets http://topforeignstocks.com/2010/09/24/the-worlds-50-biggest-banks-by-assets-2010/
There are only two Swiss banks on the list at number 20 and number 27. Swiss banks would be fortunate to have 3% of world deposits.
I know swiss banks let you keep your money denominated in different currencies. So if you deposit $1.3 million in cash, you could tell the swiss bank, you want your money denominated in euroes and you would then have 1 million euros. Then as the exchange rate goes up or down, you make tax free money that way since the 1 million euroes never changes face value. Kind of long way to bypass the forex markets, but I guess if you dont want people to know you have that money, its a way to play the game.
Switzerland is not the only country where non residents don't pay tax on capital gains or bank interest. The depositholders and investors pay tax in their own country.
The reason Switzerland is a popular place of residence for wealthy people is because immigrants can choose to pay a fixed "tax" based on the cost of their home in Switzerland and they pay no tax on their income gained outside the country.