I’m planning to move from Switzerland later this year and would appreciate some advice on how to best manage my Pillar 2a and understand the tax implications of my decisions.
Current Situation (Simplified):
- 30% of my assets are in Pillar 2a.
- 70% are in ETFs.
My Plan:
- Large Pillar 2a Contribution: I’m considering making a substantial contribution to my Pillar 2a before leaving Switzerland to significantly reduce my taxable income this year.
- Pillar 2a Strategy After Leaving: I’m thinking about moving my 3a into my 2a as well and increasing my 2a allocation to 50% of my total assets. My idea is to keep the Pillar 2a in Switzerland and invest it there after I move, while placing the remaining cash in deposit accounts in Italy to diversify.
Questions:
- Tax Implications: If I make a large contribution to my Pillar 2a now but leave Switzerland later this year, will I still receive the full tax benefit from that contribution when I file my taxes? How are taxes calculated in this scenario, and are there any potential pitfalls I should be aware of?
- Investment Strategy: Does it make sense to keep a significant portion of my assets in Pillar 2a (vs withdrawing) and invest them in Switzerland after I’ve moved to Italy? Are there risks or considerations that I should be mindful of?