Schweiz- Suisse - Switzerland


swiss annuities Comparison

Difference between US and Swiss annuities

The information published below is only indicative and may not be accurate due to frequent change in tax laws at all times. Please consult a tax advisor in your country. We ask you to consult a tax expert in your home country for professional advice with regard to filing taxes.

  U.S Fixed Annuties Swiss Fixed Annuities
1. Privacy no yes
2. Asset Protection no yes
3. Diversification no yes
4. Investment Choice no yes
5. Liquidity no yes
6. Tax deferral yes no
7. Multi Currency choice no yes
8. Currency switch no anytime

  U.S Variable Annuities Swiss Variable Annuities
Asset protection no yes
Privacy no yes
Full diversification no yes
Hedge against dollar decline* no yes
Tax-deferral yes yes
Flexibility yes yes
Choice of investments yes yes
Liquidity(* unless invested in foreign currencies) yes yes
Multicurrency choice no yes

Comparison of offshore investment strategies

Investment Individual
US Tax-deferral Exempt
from US
Foreign bank account yes no no no
Foreign fixed annuities no yes no yes
Foreign variable annuity yes yes yes yes


Swiss bank account vs Swiss Annuity

  Swiss Annuity Swiss Bank Account
Asset Protection yes no
Creditor Protection  yes no
Secrecy yes no (Currently no real privacy for swiss bank accounts)
Swiss Income Tax no no
Swiss Withholdding Tax no yes
U.S Income Tax yes - Please consult a tax advisor in your country.  yes ( US citizens would require to report to IRS on Form 1040 on any foreign held bank accounts.)
U.S Withholding Tax  no (Since there is no investment in U.S securities)  no (most swiss banks dont allow U.S citizens to invest in U.S securities)
U.S Excise Tax

SwissIinsurance - no 
Liechtenstein insurance - yes

IRS requires you to file Form 720 for 1% excise tax if you buy a foreign held annuities. Recent tax treaty with switzerland eliminates this tax. But Liechtenstein insurance are not exempt from this.

EU Savings Tax Directive  no  yes
Growth yes (diversified choice of investments can go upto 17% depending upon risk you take) yes (depends on banks interest rate 2-3%)
 Depository Institutions  Swiss Insurance Company Swiss Bank
Asset Protection


 According to Swiss law, swiss annuities, when properly structured, your annuity cannot be attached or seized, and cannot be included in any bankruptcy proceedings.



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