France, a beautiful country…

[Harmony Management]

Let's take the example of a SME manager who wants to invest 100 of his income. The 100 he has left is of course after having been massacred in taxes and various charges at the level of his company. Being taxed at the marginal bracket of 45%, he has 50 left after paying his income tax. He decides to invest this 50 in a listed company that will become a "ten bagger" after 15 years (the dream of every investor but few are so lucky... especially because they will have sold before). His portfolio is therefore 500. He decides to sell this share considering that its potential for growth is now limited. Stock market capital gains as well as dividends are now taxed in France as income plus 15% of social security contributions today but which should be much higher in 15 years. Which makes a tax on this capital gain of 60% grand minimum or 300. He therefore has 200 left after this sale fifteen years later. Unfortunately, he dies and has only one son as an heir. After having settled the inheritance tax, this child has around 100 left. We are back to square one! It really makes you want to work, earn more, take risks, invest… Yes, France, a beautiful country

[Jerome]

Excellent post and so realistic…

Fortunately in Switzerland we are a little less eaten up by the State, but we have to keep an eye on things...

[Pat Jac]

Yes, and if real estate was not so expensive in Switzerland, we would all cross the border.

A house costs €500k in neighboring France, the same costs €2k in GENEVA…everything is there.

But to complete your example of the French business leader and after having discussed with some tax lawyers and fellow accountants with a "high-end" clientele, they estimate that the entry ticket to Switzerland must be around 5 million euros of assets. Below that, in terms of maintaining the standard of living compared to France, it is not worth it...

In conclusion, in this beautiful country that is France (median income 1714€ net monthly), you have to be either poor or a civil servant and benefit fully from aid and social benefits or very rich and leave as soon as possible. The cuckold, of which I am one, is in the middle and there are more and more of us...

[Jerome]

Be careful not to compare all of Switzerland to Geneva. In the other French-speaking cantons, and in Valais in particular, the cost of living is significantly lower (housing, insurance, daily life, etc.) while maintaining salary levels that are certainly lower than on the Lake Geneva Riviera, but which are still incomparable to what is found in neighboring France.

[Pat Jac]

You are absolutely right, but when one of us works in neighbouring France and the other in Geneva, settling in Valais and making the journey every morning is practically unthinkable. On the other hand, a small apartment when you retire near Leukerbad for example, if that allows you to have the status of Swiss tax resident, we will have to see... As for changing jobs, you can think about it at 35, but not like us at 52...

[Jerome]

Yes, that's true, or else you go straight to the stage of rentier

[Author]

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