Welcome to Vaud Canton Contents
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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.