Rich foreigners are moving to Switzerland to avoid bigger tax bites in their own countries and to sidestep new Swiss policies lifting the veil on banking secrecy for outsiders.
Inquiries about taking up residence in Switzerland have increased substantially as struggling foreign economies target the rich for higher taxes to make up for faltering revenues, HSBC Holdings Plc's Swiss private bank reports, according to Bloomberg News.
“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," Alexandre Zeller, CEO of HSBC's Swiss bank, told the wire service.
To settle a law suit against Switzerland's biggest bank, on Aug. 19 the country agreed to disclose to the U.S. IRS information on almost 5,000 UBS accounts.
Residents of the UK, however, may be leading the influx of newcomers to Switzerland.
That’s because the UK could will put a 50 percent income tax on people making over $244,000 a year, Bloomberg notes.
U.S. Senate Democrats, meanwhile, are considering boosting taxes on high income earners to help pay for the proposed health care plan.
Any tax hike will face strong partisan opposition, reports The Wall Street Journal.
© 2017 Newsmax. All rights reserved.