# Optimize my finances before leaving for Spain

**URL:** https://forum.mustachianpost.com/t/optimize-my-finances-before-leaving-for-spain/9629
**Category:** Recommendations
**Created:** [January 18, 2023, 9:52pm UTC](https://forum.mustachianpost.com/t/optimize-my-finances-before-leaving-for-spain/9629 "2023-01-18T21:52:20Z")
**Posts on this page:** 1
**Showing post:** 11

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### Author: ![San\_Francisco](https://forum.mustachianpost.com/letter_avatar_proxy/v4/letter/s/ea5d25/32.png) [@San\_Francisco](https://forum.mustachianpost.com/u/San_Francisco)
#### Post date: [January 19, 2023, 8:04pm UTC](https://forum.mustachianpost.com/t/optimize-my-finances-before-leaving-for-spain/9629/11 "2023-01-19T20:04:18Z")

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> [@Barto](#):
>
> Based on the info I found and shared in [this](https://forum.mustachianpost.com/t/2nd-and-3rd-pillar-after-leaving-switzerland/736/16) thread it is not a good idea to make voluntary contributions to 2 and 3 pillar when resident in Switzerland if your plan is to withdraw the money when resident in Spain.

The external link you shared in that post seems to be down.

That said, as similar as they may be treated _in Switzerland_, one should _ **not** _ be too quick in lumping together 2nd and 3rd pillar and their tax treatments in other countries.

Pillar 2 is a pension fund scheme that allows for optional lump-sum payments at retirement.  
Pillar 3a however doesn’t usually - and in finpension’s not at all, TMK - allow for pensions. They’re more a retirement savings scheme. And (at least) retirement savings **do** seem to enjoy preferential taxation rates in Spain…

> [@Barto](#):
>
> Based on the info I could find online the withdrawal would be taxable in Spain as earned income. The tax rate depends on your total income and region

I’m not a tax advisor either. But even as just an 🦍 with a ⌨, if I may disagree on that…

_“If the scheme is not defined as a pension scheme by Spain then the same applies but the problem is much less because **retirement savings** schemes enjoy a **much better tax treatment** in Spain.”_

[The tax treatment of foreign pensions in Spain](https://www.spenceclarke.com/articles/when-a-pension-is-not-a-pension/)

Given the examples mentioned in that article, pillar 3a with finpension _would_ seem to qualify as such a retirement savings scheme to me. After all, you can’t get a pension, and it’s pretty similar to a self-select ISA.

And retirement savings schemes, according to that article, are taxed at _capital gains tax_ rates …of **only 19 to 26%**. Which is not only no more than the marginal tax rate for someone like OP in, for example, [Zurich](https://www.zkb.ch/de/blog/meine-vorsorge/steueroptimierung-grenzsteuersatz-relevanz.html).

Not only would she or he pay that same tax anyway, when alternatively investing the same amount into non-3a securities. Given that the [tax break is upfront](https://forum.mustachianpost.com/t/arbitrage-tax-vs-composed-interest/9603/12), the pillar 3a investment should be the better one (if the assumption regarding tax holds water and at current conditions and tax rates).

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