2. Pillar withdraw

Taxes
1

Liebe Community

Welche Möglichkeiten gäbe es um die 2. Säule ausbezahlt zu bekommen wenn ich mich schlussendlich in einem EU Land niederlassen werde.

Ich müsste mich zwischenzeitlich in einem nicht-EU Land melden.

Gibt es hierzu Erfahrungen? Tips?

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Dear Community,

What options are there to withdraw the 2nd pillar if I eventually settle in an EU country?

In the meantime, I would have to register in a non-EU country.

Does anyone have experience with this? Any tips?

2

Depending on your destination country it may be a good idea to settle in a non-EU country before going to your final destination. Check double tax treaties for the tax on lump sum pension payments. Choose a country that does not tax those payments.

I did that, used Costa Rica, but I think they have an expat tax now.

Those are the steps you take:

  1. Move your 2nd (and 3rd if exists) to an institution in Kanton Schwyz. It will be taxed at source there. I did use Schwyzer Kantonalbank because of the state guarantee.
  2. Move to a country where you can take out the 2nd and 3rd, then take it out.
  3. Move to your final destination.

You can get away with 4-5% tax that way.

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Are you planning to withdrawn you pension because you are of retirement age, or before that just because you can (like a true FIRE participant)?

Because in general it is as @cubanpete_the_swiss wrote. But, in some cases you might not need the additional step of a non-EU country. This applies if you are of actual retirement age, and it might even be the case before that in some EU countries (e.g. Italy if done properly taxes only 5%, Germany might be even less as paid-in capital itself can be exempted).

I suggest you get a proper tax consultant (any big four / tax consultancy with international presence will do). If that is too expensive, expat colleagues of mine had good experience with this guy (expats returning home seems to be his specialty).

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True, the non-EU country is only needed if you want to take out the money before the age of 60.

But you may still need a intermediate country if you plan to move to a tax hell. Just find out how much pension lump sums are taxed in your destination country, you probably don’t need a consultant for that. GB has zero tax for pension lump sum payments and there are probably more countries like that in Europe.

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I’m all for DIY, but withdrawing your pension capital is such a substantial tax risk that it’s one of the few things were everybody should get professional advice. Can be stupid little things (like routing it through the wrong bank account in Italy) and you end up taxed at full income tax rates.

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I did all by myself.

The only problem I had was after coming back to Switzerland; the taxman wanted proof that I have been living in Costa Rica. Renting contract, car papers, credit card statements and so on. They wanted proof that I did not live in my house in Switzerland too in form of electricity and water bills.

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