GUEST COMMENT: Frankly, I have no intention of moving to Geneva
Will the increasingly apocalyptic view of the UK as a place hostile to bankers really drive us into the loving embrace of the Swiss?
From a corporate point of view, as mooted recently by Goldmans among others, it might make sense: escape (some of) the bonus tax, pay a lower level of corporate tax (or none at all); sell
their employees on lower income tax levels, lakes, skiing and strudels.
Sounds good? For low-touch, largely electronic businesses, it probably is. Their success is almost entirely predicated on the strengths of their systems and their people. For most business areas, however, Switzerland is a no-no. And this is because...
The clients aren't there
Ok, there are some some clients in Switzerland. However, most of them are already serviced by the local Swiss office. If several banks move several teams, the local clients will find it necessary to go into hiding and change their mobile numbers.
If you move a sales-facing team in equities to Switzerland they'll spend a lot of their time flying back and forth to London, where all the clients really are.
UBS owns the place
Whatever the business area, you can be pretty sure that UBS got there first. From retail to corporate work, they've been there are done that with those clients for years. If, for some reason, UBS doesn't have it covered, your local office probably does (and if not yours, then someone else's).
You don't speak the language
Yes, everyone speaks English and speaks it well. You will be able to communicate. However, the locals will also speak at least one other and probably two other languages. You will therefore be excluded from these conversations which are often the friendly bits that set up relationships at the beginning and end of meetings.
Income tax is not as straight forward as it looks
Swiss taxes are imposed nationally and by the Cantons. They can apply to your worldwide income and assets (your London home for example and any rental income). The Cantons have a lot of discretion in what they charge and taxes can vary wildly from area to area. Generally speaking, the nicer the area you live in, the more tax you will pay.
In the past it has been possible to minimise your tax bill, but the Swiss authorities, especially at theCanton level, are very aware of these practices and are seeking to stamp them out. The 'lump sum' taxation option, which is often what people think of when considering a move, is only available to non working residents and, therefore, bankers don't qualify (at least on a technicality).
Your family...
...won't want to live in Geneva. It's not New York, it's not even Hong Kong. Yes, it's very pretty but it's as exciting as The Thames Gateway on a Tuesday evening. No thanks, they'll stay in London and you'll be in a rental flat on your own for at least four nights a week.
Yes, London is expensive and getting more so but at least we can meet in the pub and whinge about it - together.
The author is a senior banker who has recently started a new job (in London).
