HSBC Says Switzerland Luring More Rich Foreigners as Taxes Rise

[Joanne98]

Sept. 3 (Bloomberg) -- HSBC Holdings Plc’s Swiss private bank says more rich foreigners are inquiring about moving to Switzerland, spurred by rising taxes at home and concerns about the erosion of banking secrecy for non-residents.

Switzerland’s decision to increase cooperation with the U.S. and neighbors such as France and Germany on tax evasion hasn’t dulled the Alpine nation’s allure for those who are able to take up residence, said Alexandre Zeller, chief executive officer of HSBC’s Swiss bank.

“We’re not talking about thousands of people because we’re talking about people with a certain wealth, but it’s significant,” Zeller said in an interview in Zurich. “They come above all from countries which have substantially increased taxes. There’s a direct correlation between taxes and the desire of a wealthy person to want to establish themselves elsewhere.”

Switzerland is home to expatriate millionaires including seven-time Formula 1 racing champion Michael Schumacher, Ikea founder Ingvar Kamprad and singer Tina Turner. Wealthy residents who don’t have Swiss income can negotiate individual tax deals with regional authorities in Switzerland.

Zeller said any Swiss banking client with a tax-compliance issue in his home country has three choices: do nothing, make a voluntary disclosure, or, if rich enough, move to Switzerland.

Beginning in April, the U.K. plans to levy a 50 percent income tax on people who make more than 150,000 pounds ($244,000) a year. Julius Baer Holding AG Chairman Raymond Baer said in an interview earlier this year that his bank remains attractive to Germans faced with unpredictable taxes. Most Americans remain liable for U.S. taxes even if they live abroad.

http://www.bloomberg.com/apps/news?pid=20603037&sid=ae3NU.gekp.0

[marmar]

1. The Rich, always willing to help out society as a whole.

Big time :sarcasm:

[Democracyinkind]

2. Julius Baer - proud sponsor of Mexican vote rigging, drug dealings, and the Cayman loop.

Yeah "Julius", the rich germans aren't your biggest liability.

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Of course I am angry that Ghaddaffi is proposing to "dissolve the Swiss Federation" in NY when he visits the UNO, but I guess I couldn't counter a rational person making the same points he does. We hold about a third of the worlds wealth here, and estimates are that 40 to 80 percent of that amount is deposited here illegally in some form or another. Can't say that I don't enjoy the benefits of those spoils though.