Has Switzerland’s time come? The country has a long reputation as a haven for the wealthy, with “negotiable” tax rates. But with a new 50 per cent tax rate approaching for the wealthiest UK residents, agents for the Swiss Government have been swarming to London to convince top hedge fund and business executives that they should make a move — and now.

The message is not going unheeded. At a recent conference in London, one banker confided: “It just seems like the Swiss are open for business, while in the UK you feel they are out to get you — that the Treasury needs to fill the coffers and it’s people like us who are going to pay for it.”

For many, a move to Switzerland can bring big tax savings. At a federal level, the top rate of income tax is 11.5 per cent, and Swiss rules such as the forfait fiscal allow some wealthy individuals not earning a salary in the country to pay a fixed level of tax, which is five times the rentable value of their property, per annum.

But the Swiss tax system is not without its complications. Each of Switzerland’s principal cantons sets its own residency rules and tax levels — which vary from 10 per cent to 35 per cent — and only some are prepared to do deals to attract individuals or corporations.

However, low-tax cantons such as Zug, in the north of the country, that are “open for business”, have been sending delegations to London to try and persuade people to relocate. Jonathan Ivinson, a tax partner at Hogan & Hartson, told one such meeting: “For those looking at a 50 per cent tax level — and the possibility of that getting higher in the future, Switzerland looks like a good deal. In most cantons you can halve your tax rate.”

Cities like Geneva and Zurich offer higher tax rates than the more rural cantons — but are nonetheless popular with foreign workers. Peach Properties, a developer based in Zurich, is launching a scheme of high-end apartments on Lake Zurich. They will not be finished until June 2011 but half have been sold off-plan. Andreas Steinbauer, sales manager, said: “We have had quite a lot of interest from London — from bankers to hedge funds and retired people. We have about 10 to 15 Brits inquiring every week.” Units start at SwFr2.3 million (£1.4 million), but are popular with foreigners keen to find a coveted lakeside property.

The Centre for Economics and Business Research estimates that 25,000 taxpayers may move when the new 50 per cent tax rate for those earning more than £150,000 in the UK comes in next April, with Switzerland likely to win many UK tax exiles. But Jonathan Hewlett, of Savills, the estate agents, said that while many London entrepreneurs go as far as planning a relocation and inviting an agent to value their home, few actually make the move. He said: “There are always some people moving, but it tends only to be for a time. Education of their children presents the main problem — it is just not seen as being as good.”

Many who do leave tend to plan to return, meaning little hope of the shortage of prime London properties on the market easing — more bad news for those who stay behind to face the taxes.

Aylesford International, 020-7349 5100

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