Welcome to Vaud Canton Contents
Welcome to Vaud Canton 3
The Swiss banking system 4
Day-to-day banking 5
Finding somewhere to live 9
Planning your retirement 10
Saving and investing 12
Taxes in Switzerland and in Vaud Canton 14
Health insurance 16
Insuring your belongings 18
Driving in Vaud Canton 20 Welcome to Vaud Canton
You can find everything that Switzerland has As one of the country’s largest banks, we offer a to offer in Vaud Canton. The diversity of the comprehensive range of financial products and landscape is stunning, ranging from the peaceful services. We are therefore well positioned to help shores of Lake Geneva and the vineyards of the you handle the financial aspects of life here. Our Lavaux region, now a UNESCO world heritage site, extensive on-the-ground presence means we are to the rolling slopes of the Jura Mountains and the never far away when you need us, and our resources snow-clad peaks of the Alps. Vaud also has a rich and reach allow us to respond to the most complex cultural heritage and a vibrant economy, not to financial needs. mention wonderful culinary traditions. Thanks to our expertise and our strong client In addition, the region is extremely well connected to relationships, we are also one of the leading wealth the rest of Switzerland and the world, with a dense management institutions in Switzerland. 2 | 3 road and rail network and an international airport nearby. In addition to our banking activities, we are committed to helping develop all areas of the Vaud Banque Cantonale Vaudoise (BCV) is a full-service economy and are closely involved in the social and community bank in Vaud Canton, which we have cultural life of our canton. been serving for over 160 years. During this time, we have built close ties with local residents and businesses. The following pages provide some practical tips – financial and otherwise – on living in this region. The Swiss banking system
Banks in Switzerland differ widely in terms of size, Countrywide full-service banks range of services, geographical reach and legal These banks offer the full range of services and operate status. throughout Switzerland, and in some cases around the world as well. Cantonal banks Switzerland is divided into 26 independent regions Private banks and private bankers known as cantons. 24 of these regions have their own These institutions specialize in wealth management cantonal bank, an autonomous institution that is either for individual and institutional clients. Private banks are fully- or majority-owned by the cantonal government. limited companies, while private bankers’ legal status Apart from banking activities, the cantonal banks have is one of either sole ownership or limited partnership a social and economic responsibility towards their (which means that at least one partner bears unlimited clients, employees and canton. personal liability for assets held).
Regional banks and savings banks BCV is the cantonal bank of Vaud and is part These banks focus on traditional interest-related of the network of cantonal banks with which operations, such as mortgage and corporate lending it shares certain services. The advantage of on the one hand and savings deposits and investments being a cantonal bank is that all decisions are on the other. Their activities are generally restricted to made in the canton by people who live there one region. and know the region well. We believe that the best way to serve our customers is to always be Foreign banks close at hand and to know their needs. This is A bank is classed as a foreign bank if more than 50% of the reason why we have a dense network of its capital is held by foreign groups. These institutions 67 branches and 200 ATMs in the region. tend to focus on international operations and wealth management.
Other banks These include commercial banks, consumer credit banks or other institutions specializing in activities such as stockmarket transactions, wealth management or securities issuance. Day-to-day banking
In Switzerland, your salary is normally paid straight into Paying for goods and services your private account each month. Swiss banks often With your BCV Maestro card, you can pay for all charge an account management fee, but will offer a goods and services wherever the Maestro logo is competitive interest rate in return. displayed in Switzerland and throughout the world. The amount of the transaction is debited directly Your BCV private account comes as part of a banking from your account. pack, which is a comprehensive suite of accounts and services designed to meet your day-to-day banking needs. Along with the private account, the pack includes a savings account, Maestro card, and online banking. We offer three banking packs to choose from: • the if you wish to bank Direct banking pack, 4 | 5 exclusively online • the Classic banking pack, for a more traditional approach to banking You can use your MasterCard or Visa credit card to • the Premium banking pack, the key to flexible pay for goods and services at shops and online, and banking. withdraw cash at ATMs wherever the corresponding logo is displayed, both in Switzerland and around the When you open an account with us, we will provide world. you with an international bank account number (IBAN). You will need this to transfer money to and from Switzerland. You can pay money into your Swiss account in cash or by check, or by transferring funds from another account inside or outside Switzerland. Checks are not commonly used in Switzerland.
You can also open a foreign currency account if you wish to deposit money in a currency other than the Swiss franc.
Withdrawing money ATMs (bancomat) are widely available throughout Switzerland, enabling you to take out cash at any time using your Maestro debit card. BCV has a dense ATM network in Vaud Canton, through which you can also deposit funds and view your account balance and recent transactions. Paying your bills There are three ways to settle bills using a In Switzerland, most of the bills you receive will be payment slip: accompanied by payment instructions in the form • online using BCV-net, our online banking service of a payment slip. • with the BCV-net Mobile app – this offers a quick and easy way of scanning your payment slips There are two types of payment slips: • by sending the slip to BCV along with a payment Red payment slips (BV) provide the following order (BCV-top) information: • the bank or postal account number for payment • the amount to be paid • the reason for payment
BCV also offers an online payment system enabling you to receive and pay “e-bills” directly on BCV-net. Orange payment slips (BVR), generally used by service providers such as utility and insurance companies Payments can be automatically debited from your as well as the tax authorities, provide the following account at regular intervals in one of two ways: information: • by obtaining a direct debit request form (LSV+) • the bank or postal account number for payment from the biller, filling it in and sending it to your bank • the amount to be paid (generally pre-printed) • by setting up a standing order (online, over the • a reference number counter or by mail). 6 | 7
Finding somewhere to live
Renting Buying If you decide to rent an apartment or house, you will Buying a house is an important step that should be have to sign a rental agreement. This contract (bail considered carefully. Your BCV advisor will help you à loyer) will specify the rent, utility charges and the every step of the way, including working out your number of rooms in your home. It will also be signed budget and getting your downpayment together. In by the landlord or rental agency. Make sure you have Switzerland, mortgage loans generally cover 80% of the all the required documents (e.g., residence permit and total value of the property, so you need to provide the recent pay slips) when you submit the rent application. remaining 20% yourself in the form of a downpayment. Besides cash, you can use your Swiss occupational and You will be asked to pay a rent guarantee, normally private pension assets to finance the downpayment equivalent to two or three months’ rent, to cover costs (see the pension system table on page 10). in the event of damage to the property or unpaid 8 | 9 rent. This amount is deposited in a special blocked Mortgage loans generally comprise a first mortgage savings account (BCV Rent Guarantee Account) that covering 65% of the value of the property and a you hold jointly with the rental agency, and only the second mortgage covering 15%. The second mortgage interest earned can be withdrawn as long as the rental must be paid back first, within the term specified in agreement is in effect. The funds are released when the loan offer. you vacate the property, in accordance with local law. At BCV, there is no annual fee for a rent guarantee Your advisor can explain the tax advantages and account. disadvantages of owning your own home in Switzerland and, should you decide to buy, develop Alternatively, a number of companies offer rent the best mortgage solution for you. guarantee insurance. The advantage is that you don’t have to block a significant sum of money in a rent guarantee account. Planning your retirement
The Swiss pension system comprises three different supplement the first two pillars with private, third- types of coverage, referred to as pillars. The first pillar retirement assets. pillar, which is compulsory, is standard social security, also known as AVS. The second pillar consists of The Swiss pension system is designed to allow you to occupational benefits provided in conjunction maintain your standard of living when you retire or if with your employer. Finally, you may choose to you become unable to work.
First pillar Second pillar Third pillar
• AVS (Assurance-vieillesse et LPP (Loi sur la prévoyance Private pension survivants): old-age and survivors’ professionnelle): occupational pension Blocked pension assets (3a): insurance Managed by the employer’s pension • Private retirement savings account • AI (Assurance-invalidité): disability fund. (Epargne 3) insurance • Private retirement portfolio AVS and AI together represent the Compulsory for all employees account (Portfolio 3) government-funded social security subject to AVS and whose salary • Linked life insurance policies system. exceeds a defined minimum Unrestricted pension assets (3b) such Managed by cantonal and amount. as investments and savings accounts. professional compensation funds. Supplements the first pillar and This coverage is optional. Payments Compulsory for all individuals residing is designed to help maintain the into a blocked (3a) pension plan are and/or working in Switzerland. individual’s standard of living. tax-deductible.
Covers basic needs relative to: Financed by both employees Allows individuals to: • old age (retirement pension) (deducted from salary) and • fill in any gaps in compulsory • disability (disability pension) employers. The employer must coverage • death of partner or parent (survivors’ finance at least 50% of the company’s • protect themselves in the event pension or orphans’ pension) occupational pension fund. The of death or disability applicable contribution rate for • reduce their tax burden each year • build up savings that can be used for Financing: contributions are based on employees is indicated in the the downpayment on a property or employees’ full salary. company’s pension fund regulations. for self-employment purposes • indirectly repay a mortgage loan Benefits are calculated on the Benefits vary depending on the basis of a capped annual salary and pension fund. However, there is a With 3a accounts, individuals can depend on the number of years that legal minimum. choose how much to pay in each year, contributions have been made. They Please refer to your pension fund up to the limit set forth under Swiss are paid in the form of a pension. insurance certificate and the pension fund regulations for more law. For 3b products, there is no legal information. limit on payments.
The benefits received depend on the amount invested and the interest rate paid. For life insurance policies, the death and disability risk premium is deducted from the invested amount. When the policy expires, a one-off tax is paid.
The legal retirement age in Switzerland is 64 years for women and 65 for men. Filling any gaps in coverage Your AVS number The benefits provided under the first and second When you start working, you will receive an AVS card pillars are not always sufficient to cover your needs. For (or certificate) from your employer. This card shows example, the pension you receive under these plans your AVS number, which allows the authorities to may be less than 60% of your final salary. It is therefore process your contributions accurately and calculate the a good idea to fill any gaps in coverage with a private pension benefits to which you are entitled. pension. You will be asked for this card whenever you start a Your BCV advisor will help you find the best pension new job so that your employer can register you with solution in order to protect you and your family from the company pension fund. life’s hazards.
10 | 11 Saving and investing
Building up your savings Solutions tailored to your needs If you want to put some money aside for a big BCV now ranks among the leaders in Switzerland’s purchase or simply for a rainy day, the BCV Savings wealth management industry. As a universal bank with Account and the BCV e-Savings Account are ideally a strong local presence, we provide global solutions suited for this purpose. that we design on the basis of our own investment policy while adopting an open architecture approach Managing your wealth (i.e., seeking the best products available on the market). Switzerland has a time-honored tradition of managing We offer a full range of products and services, including private wealth and enjoys a worldwide reputation investment funds and discretionary management tools for excellence in this field. The professionalism and (management mandates and proactive counselling by discretion of Swiss wealth managers are underpinned dedicated experts) as well as structured products. by the country’s political and social stability, its international orientation and modern banking BCV-net, our online banking platform, enables you legislation. to manage your portfolio online. You can download financial market data and portfolio information, place The private banking market offers a wide range of stockmarket orders, etc. investment vehicles for every type of client. No matter how much you wish to invest, your wealth manager Your BCV advisor will help you identify your goals, will help you find the solution that is best suited to your risk tolerance and the type of investment your personal requirements. In this respect, your management best suited to your needs. The aim is for wealth manager must have a solid understanding of you and your advisor to develop a close relationship your risk tolerance, investment objectives, and financial that is based on trust. capacity, as well as your financial knowledge and experience.
Your involvement in the investment process The rest of this brochure provides other There are three possible ways to manage your practical information and tips that you may investments: find useful as a newcomer to Switzerland. • Do-it-yourself investing: You manage your portfolio on your own based on the financial information made available to you. • Advisory management: You are in the driver’s seat, making all investment decisions yourself while drawing on personalized advice and recommendations from your advisor. • Discretionary management: You let your bank manage your assets based on a pre-determined strategy. 12 | 13 Taxes in Switzerland and in Vaud Canton
The Swiss tax system Two types of taxation As Switzerland has a federal system of government, Depending on your situation, your taxes will either be taxes are levied at three different levels: federal, withheld from your salary or you will pay them on the cantonal and local. basis of a tax return.
Under Swiss law, certain aspects of taxation have Withholding been harmonized among the 26 cantons. But some In Vaud Canton, if you have an L or B permit, your differences remain in areas such as wealth tax, estate employer will deduct federal, cantonal and local taxes tax, gifts and real estate gains. directly from your salary each month in accordance with a special scale covering all three categories. You will be subject to Swiss taxation on all your income and personal assets from the day you take In this case, you do not have to file a tax return. up residence here until the day you leave the country However, you can file a simplified tax return until permanently. March 31 of the following year to request a refund in view of additional deductions provided for by law, Switzerland has bilateral tax agreements with more such as private pension contributions or occupational than 90 countries (including all OECD countries) in pension fund purchases. order to avoid double taxation.
If you have an L or B permit and earn more than CHF 120,000 a year or own real estate in Switzerland, your taxes will continue to be withheld but you will also have to file a tax return. The amount of taxes withheld will then be offset against the actual amount due. Tax return In Vaud Canton, each town sets its own rate relative to Your taxes will not be withheld – meaning that you the canton’s base rate. Local tax rates thus vary from will have to file a tax return – if you are or become: town to town. The tax rate applied takes into account • a C permit holder your family situation, including the number of children. • a Swiss national Additional deductions are allowed for children and • married to a Swiss national or a C permit holder other persons in your care. • a cross-border worker (e.g., living in France and working in Switzerland) The return is based on information – such as marital • self-employed. status, number of children under 18, any older children still in education, and place of residence – valid as of In the tax return, you have to declare all your income December 31 of the year in question. and personal assets. Income includes money earned 14 | 15 inside or outside Switzerland such as salary, pension, interest and dividend payments and any rental income. However, one of the main tax advantages in Switzerland is that capital gains on privately held securities are not subject to tax. Income tax rates are progressive and can reach 41.5% (federal, cantonal and local taxes included).
Swiss wealth tax is levied at the cantonal and local levels on your personal assets. This includes any financial investments – including bank accounts and securities held outside Switzerland – and property you own. You will have to declare any property you own outside Switzerland as well, as this is taken into account to determine your tax rate. Wealth tax is calculated on the assets you hold on 31 December of each year or on the date that you leave Switzerland permanently. Wealth tax rates are progressive and can reach up to 0.8%. Health insurance
Everyone living in Switzerland is obligated to buy The cost of medical insurance health insurance. New arrivals must sign up for You will have to pay the following: a health insurance plan within three months of • a premium: the amount will depend on your insurer, moving here. You are free to choose your insurer. your place of residence and, for additional coverage, your age. There are two types of insurance: basic compulsory • annual deductible, co-payments: the deductible is coverage and optional additional coverage. the initial amount of medical expenses up to which the insurer does not reimburse you, i.e., the amount Basic compulsory insurance (LAMal) that you have to pay yourself. After the annual This insurance ensures access to good quality care deductible has been used up, you only have to cover and a broad range of services. It covers costs in the the co-payment, which is a fixed percentage defined event of: by law (10%). The co-payment is limited to CHF 700 • illness (doctors fees and prescriptions) for adults and CHF 350 for children. • pregnancy • an accident (unless you have accident insurance The insurer reimburses costs and fees that exceed the through your employer) amount of the deductible and co-payments. You can • certain specific treatments (such as vaccines, spa reduce your monthly premium by accepting a higher cures and homecare services) deductible.
Hospital costs are only covered in the canton in How to pay less for medical insurance which you live. Dental fees are only covered in the Insurers offer several alternative plans to reduce the event of serious illness. Medical costs incurred outside amount of your premium. Switzerland are covered only in the event of an emergency. Health maintenance organizations (HMOs) – mainly in urban areas Optional additional coverage You can choose to be treated only by HMOs. This You can take out additional coverage if you have any means that for a lower premium you relinquish your particular personal needs (e.g., a private or semi-private right to freely choose your doctor or hospital, except in room in the hospital) and/or if you wish to be covered emergencies. for other supplementary services (e.g., hospitalization throughout Switzerland and services provided by This plan can save you up to 25% on your premium. dentists, opticians, osteopaths and naturopaths).
The price of these extras depends on your insurer and the services you wish to have covered. Coverage is granted on the basis of a medical questionnaire. General practitioners (GPs) Telmed Under a GP plan, you agree to consult your GP first With this plan, you must phone a medical advice center in the event of illness, except in emergencies. Your before going to the doctor. The professionals at the insurer will either offer you a list of GPs to choose from center will give you advice on how to deal with the or leave the choice up to you. The doctor chosen is problem or instruct you to go to a doctor, hospital or in charge of your medical file and will refer you to a therapist for treatment. specialist whenever necessary. This plan lets you save up to 15% on your premium. You can save between 5% and 20% on your premium with a GP plan.
Accident insurance 16 | 17 This type of insurance covers you in the event of an accident in or out of the workplace. If you work more than eight hours a week, you are included in your employer’s policy. Otherwise, you must take out private accident insurance. Insuring your belongings
There are a number of other compulsory insurance policies in Switzerland: • If you own a car, you must have comprehensive insurance (casco). • If you own a motorcycle or bicycle, you must have the appropriate insurance. • If you own a building, it must be insured. • Whether you own or rent your home, you must have fire insurance (issued by ECA, the cantonal insurance office), personal liability insurance and household insurance. 18 | 19 Driving in Vaud Canton
Driver’s license Highway tax The driving age in Switzerland is 18. You can use a In order to drive on highways in Switzerland, you need foreign license for up to 12 months, during which time to display a tax sticker (vignette autoroutière) on your you must apply for a Swiss license. To do this, you need car. It costs CHF 40 and is available at border crossings, the following documents: post offices and service stations. It is valid for 14 • a permit application form, which is available from months, from December 1 to January 31. your local motor vehicle department (Service des Automobiles et de la Navigation – SAN). You need Drinking and driving to complete and sign the form and have it stamped The blood-alcohol limit in Switzerland is 0.5 per mil. and countersigned by the local Contrôle des habitants office Parking • an identity document (either your identity card, Yellow areas: no parking allowed passport or residence permit) White areas (except those with parking meters): free • a recent color passport photo with your full name parking written on the back Metered areas: paid parking, using coins or your bank • your original driver’s license (an official translation card may be required) Blue areas: free parking for a limited time, parking disk • an eye test certificate signed by the optician or required ophthalmologist Other useful information Vehicle registration You must have a car seat for children below the age of 7. When you buy a new or used car, it does not have license plates. You obtain these from your local motor It is forbidden to use a mobile phone when driving vehicles department, where they will be registered unless you have a hands-free set. in your name. If your car is registered and insured in another country, you may drive it for a short period, Bicycles but you must get Swiss plates. You need to have personal liability insurance for your bike. Traffic regulations Speed limits: Principal highways: 120 km/h Secondary highways: 100 km/h Major roadways: 80 km/h Built-up areas: 50 km/h Residential areas: 30 km/h Pedestrian priority zones: 20 km/h
In Switzerland, highway signs are green and major roadway signs are blue. Public transport Car sharing Switzerland has a dense rail network with trains that If you only need a car for occasional use, there are are known for being reliable and punctual. As a result, several car-sharing companies that have vehicles the Swiss are among the most frequent train users in available in most towns across the country. You can the world. A variety of rail cards and discount fares are sign up for this service and reserve a car over the available. internet.
Lausanne has a bus and trolleybus network, a tramline, and a metro with two lines.
The CGN (Compagnie Générale de Navigation) runs regular boat services on Lake Geneva between 20 | 21 Lausanne and a number of other towns. Important legal information
a market maker. They may have had and may have business relationships with Waiver of liability. While we make every reasonable effort to use reliable information, we make no representation or warranty of any kind that all the issuers of certain securities. They may have provided and provide them with information contained in this document is accurate or complete. We disclaim corporate finance services, capital market services or any other financial services. all liability or responsibility for any loss, damage or injury that may result directly or indirectly from this information. The information and opinions Distribution restrictions. Certain transactions and/or the dissemination of presented herein may be changed at any time, and we shall have no obligation this document may be prohibited or subject to restrictions for persons in to inform you of such changes. jurisdictions other than Switzerland (including but not limited to the UK, the United States, and “US persons”). The distribution of this document is only authorised to the extent allowed by the applicable law. No offer or recommendation. The sole purpose of this document is to provide information. It does not constitute a solicitation for funds, an offer to buy or sell or a personalised investment recommendation. We suggest that you Trademarks and copyright. The BCV logo and trademark are protected. This contact your advisors for a specific examination of your risk profile and that document is subject to copyright and may not be reproduced unless the you inform yourself of all risks involved, particularly by consulting our brochure reproduction mentions its author, copyright and all the legal information it on the risks involved in securities trading, before engaging in any transaction. In contains. Prior written authorization from BCV is required to use this document particular, we draw your attention to the fact that prior performance must not for public or commercial purposes. be taken as a guarantee of current or future performance.
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Banque Cantonale Vaudoise Case postale 300 1001 Lausanne
Switzerland www.bcv.ch 0844 228 228 41-484e/15.06