FATCA As It Influences Switzerland

As FATCA is implemented around the world for Americans living abroad, many eyes are on Switzerland since they have so many unique banking laws and requirements. The Swiss Bankers Association has recently said, according to an article by Ellen Wallace on Geneva Lunch, that it “welcomes the signing of an agreement” and that “the complexity and costs arising from the unilateral Fatca legislation introduced by the US will be reduced for Swiss financial intermediaries.”

Tax attorney Bill Sharp worries about FATCA since Swiss local and regional banks that want to fit into the category 4 of the program will have a dilemma (Für Schweizer Lokal- und Regionalbanken, die sich in die Kategorie 4 des Programms einordnen möchten, «ergibt sich ein Dilemma», erläutert Sharp in einem noch unveröffentlichten Artikel für die Fachzeitschrift.). Not everyone agrees with Sharp, however.

As lawyer Marnin Michaels of the law firm Baker & McKenzie explained, he believes that FATCA will include US taxpayers in Switzerland as part of the 98% local clientele.

(Laut dem Zürcher Anwalt Marnin Michaels von der Kanzlei Baker & McKenzie zählen gemäss Fatca US-Steuerzahler mit Wohnsitz in der Schweiz zu den erforderlichen 98 Prozent Lokalkundschaft.)

Clarification has been given about certain areas of FATCA. Areas that are not part of the scope of the FATCA agreement include social security funds, private pension funds and property and casualty insurers.  Time will tell how other areas will be influenced and how American citizens living abroad will feel the impact of these changes.

About Alison Meadows

Alison Meadows has a PHD in Economic Trends in Modern Times and is a known writer who focuses on hedge fund investments. Meadows, her husband, and three kids live in Boston, where she grew up and attended college. Contact Alison at alison[at]businessdistrict.com