Hi Folks,
I’ve been reading Marc’s advice for the last 2-ish years and made several changes such as opening a Degiro account for the ETF he recommended, opening a Neon account and doing my own version of YNAB.
I’m in my mid 50s, Australian born but with an Irish passport, living in CH (BS then BL) since 2010. Originally a doctor, but been working in big pharma for the last 15 years. I’m working on my German skills for Citizenship (A2 to B1 is a huge step for me and I occasionally lose all hope!).
Total salary package is around Fr. 300k (Salary, Bonus, Equity, Pension). I own my own home in BL and net worth touching Fr.2.5 and I’d like to retire (isn’t there a better word for stopping work?) in the next few years. If I do, I will be ineligible for the Australian or Swiss pension but I am open to living in anyone of Croatia, Greece, Cyprus, Malta etc. I’m comfortable to manage my own money and not be reliant on any state pensions.
Questions/Advice: Anyone else in a similar situation? Tips on language learning? Anyone else interested in those places to retire?
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If net worth includes house and 2nd pillar it is probably not enough to live in Switzerland off the stocks cashflow it generates.
You could move out of Europe for some time and take out the 2nd pillar lump sum. Don’t forget to move it to Kanton Schwyz before you leave, it will be taxed where the money is, not where you used to live. I did this with 51 and live since off the cashflow that money generates in the stock market, now for the 12th year.
If you leave and don’t sell or rent out your house Kanton BL will want to see electricity and water bills to prove you haven’t been living there when you took out the money.
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Thanks Cubanpete!
Indeed, I expect an income from assets, cap growth in equity, rents of around Fr. 75-100k which won’t realistically provide a ‘great’ life here in CH as compared to other locations (I note you loved Costa Rica).
For the 2nd Pillar and Kanton Schwyz, I am curious how one moves it there? Only after leaving one’s job or…? Thanks for any tips.
Yes, after leaving the job, but you can prepare everything way before and just give the instructions to your pension fund to move the money once you leave the job. They will ask for instructions anyhow.
I did use Schwyzer Kantonalbank in Pfäffikon, small train ride at the lake of Zurich. You need to open a vested benefits account (Freizügigkeitskonto) there. They charge CHF 500 if you take out the money before 12 months, probably there are cheaper institutions but with Kantonalbank you have some kind of state guarantee.
Just choose a country that does not tax lump sum pension payments to live in at the moment you cash out the 2nd. There are heaps of such countries, but there are also tax hells that may take away half of your pension money.
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did this with 51 and live since off the cashflow that money generates in the stock market, now for the 12th year.>
So those funds simply convert into your investment and you can, for example buy ETFs through Degiro? Also, if you achieve some nice capital gains yet live overseas, will CH tax you? Complex question, I know…
No, Switzerland did not tax me, except for the <5% withholding tax of Kanton Schwyz on the lump sum 2nd pillar.
But I think I paid more tax in the then tax-free Costa Rica than in Switzerland where I live again now. The reason is the missing double tax treaty between USA and Costa Rica. They charged 30% withholding tax on dividends instead of 15%.
I don’t do ETF but specialize in U.S. stocks.
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