Important:
The information provided in this section is believed to be correct but should not be considered as legal or tax advice. We recommend our clients to ask for legal advice from a local tax expert. For more information please read our disclaimer.
Would my investment be protected from foreign exchange controls?
Since Swiss annuities are mid- to long-term contractual commitments, they probably would be excluded from foreign exchange controls. Moreover, a forced repatriation of funds invested in a Swiss annuity is highly unlikely.
Can I legally (and freely) transfer funds to and from the U. S.?
Both the U.S. and Switzerland do not have any foreign exchange controls. So any amount of money can be transferred legally. However, if you take cash or negotiable papers totalling more than USD 10,000 over the U.S. border, you must report it.
How are Swiss annuities treated under U.S. tax laws?
Immediate annuities seem to enjoy the same tax advantages as comparable U.S. vehicles (i.e.: only the „proceeds” of your retirement income but not the „return of principal” are subject to income tax). Swiss annuities can also be used for IRA or KEOGH if they are owned by a U.S. entity qualifying for IRA/KEOGH (a custodian such as a bank or trust company). We can give you the name of a reliable U.S. custodian upon written request. On the other hand, interest earnings and dividends on deferred annuities are taxable on an annual basis.
How do I know which portion of my retirement income is subject to income tax?
Upon request, the insurance company will send you a table showing the return of principal and the earnings. This information is also included in the year-end statements that are provided automatically by most Swiss insurance companies.
For further details on how to complete your tax form, please get in touch with your local tax expert.
