Canada's growing exodus

As Canada grapples with mounting economic and social challenges, an increasing number of wealthy Canadians are seeking alternatives to safeguard their wealth and enhance their lifestyle. Rising taxation, political uncertainty, and concerns about the country's long-term stability are fueling this migration. High-net-worth individuals are not solely driven by financial considerations; they are also in pursuit of greater personal security, political stability, and better opportunities for their children's future.

The Implications of Canada’s Capital Tax Increase

The Canadian government's recent proposal to raise the capital gains tax rate from 50% to 66% has sent shockwaves through the nation’s affluent community. This substantial increase has spurred wealthy Canadians to consider relocating to countries with more favorable tax regimes. Among the top destinations being considered are Switzerland and other European nations, known for their attractive tax benefits, high standards of living, and robust financial infrastructures.

The proposed capital tax hike aims to boost government revenues but also risks driving away high-net-worth individuals who significantly contribute to the economy. A capital gains tax rate of 66% would severely diminish investment returns, prompting many wealthy Canadians to seek more tax-efficient environments.

This increased tax burden could lead to a reduction in investment activities within Canada, as affluent individuals and families move their assets and residency to countries offering more favourable tax conditions. Consequently, these migrations could result in a significant economic impact, diminishing the investment pool that drives innovation and growth within Canada.

Switzerland is a preferred destination

High-net-worth individuals are looking for jurisdictions that offer more favourable conditions for their assets, robust economic environments, and a higher quality of life. These Canadians are not just motivated by financial considerations but also by the desire for greater personal security, political stability, and opportunities for their children's future. In their quest for an optimal living environment, they prioritize countries with a reputation for excellence in education, healthcare, and overall quality of life.

In their quest for a more promising future, many wealthy Canadians are exploring wealth migration options such as establishing second residences or transferring their assets to countries renowned for their stability and prosperity. Switzerland, with its strong economy, low taxation, and high standard of living, has become a preferred destination.

The Swiss financial system's discretion, coupled with its reputation for excellence in wealth management, offers an attractive proposition. By relocating their assets and, in some cases, their families, these individuals are not only preserving their wealth but also ensuring a secure and prosperous environment for future generations.

This strategic move provides them with peace of mind, knowing they have taken proactive steps to safeguard their legacy against the backdrop of Canada's uncertain future.

Several viable pathways to Switzerland

While Switzerland does not offer a Golden Visa program like some other countries, wealthy Canadians still have several viable pathways to gain residency in Switzerland. One popular method is through the lump-sum taxation system, which allows foreigners to negotiate a fixed tax rate with local authorities based on their overall lifestyle expenses rather than their worldwide income and assets. This option is particularly attractive to high-net-worth individuals seeking a clear and predictable tax environment.

Another pathway is the retirement visa, designed for those who are over 55 years old, financially independent, and not seeking employment in Switzerland. This visa provides a serene and stable environment for retirees who wish to enjoy Switzerland's high quality of life and outstanding healthcare system.

Entrepreneurs can also explore the entrepreneurial visa, which caters to those looking to start or invest in a Swiss business. This visa requires applicants to demonstrate their business's potential to create economic value and employment opportunities within the country. There are other options as well.

Alpen Partners leads the way to Switzerland or other preferred destinations

Alpen Partners offers a comprehensive suite of services that extends beyond traditional wealth management to include citizenship and residence planning for Canadians seeking alternatives to their current situation. Recognizing the unique challenges and aspirations of high-net-worth individuals, We provide personalized guidance to help clients explore the best options for residency and citizenship around the globe. While Switzerland remains a prime destination, our expertise encompasses evaluating a variety of countries based on personal preferences, financial objectives, and lifestyle goals. This holistic approach ensures that clients can make informed decisions that align with their long-term aspirations.

In addition to advising on the optimal country for relocation, Alpen Partners manages the entire process, from initial evaluation to final settlement. Our services include navigating the complexities of legal and tax requirements, facilitating the application process, and providing ongoing support to ensure a seamless transition. We also offer relocation services, helping clients with practical aspects such as finding suitable housing, and schools, and integrating into the local community.

This end-to-end support not only simplifies the migration process but also ensures that clients and their families can enjoy a smooth and successful transition to their new home, free from the uncertainties and constraints they may face in Canada.

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Pierre Gabris, Founder & Managing Partner | [email protected] |

+41 58 105 75 00

Alpen Partners AG | Switzerland is licensed as a Portfolio Manager throughout Canada.

Alpen Partners AG | Switzerland ners has offices conveniently located in Zurich, Geneva, Lugano, and B?ch/Wollerau (headquarters).

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