I’ve read all the previous posts about leaving Switzerland and cashing out Pillar 2, oblig/non-oblig, withholding tax, etc. However, I have not been able to find any info/experiences on the tax implications in the new home country.
In my case I am EU citizen, worked & lived in Switzerland for 20 years, now moving to a new job in Germany.
I understand that I can cash out my non-obligatory portion of pillar 2.
I have had several discussions with 2 different German tax advisers and their initial assessment is that the funds would be subject to tax in Germany.
Also, if I was to use the funds to purchase a property in Germany (my future main residence) this would also be subject to tax in Germany.
The German tax adviser proposes to investigate further and also consult with a lawyer. I prefer not to go to this expense if I can avoid it.
If there is a significant tax (at income tax or capital gains tax levels) then I will keep the funds in a vested benefits account in Switzerland.
I would be very grateful to hear if anyone has experience in this area or knows a German tax adviser that has dealt with similar situations.
Interesting question since I will probably be in the same situation at some point.
This cash-out that you can get, will it not be taxed in CH when you get it? I do not know it, but my reasoning would be that since CH gave you the tax credit in the first place, they would want to get the tax if you withdraw the money. If this is the case, I suppose that DE will not tax you of the remaining amount?
Also, can you not put all - including obligatory payments - of the money into a pension scheme in DE and then not get taxed of the amount in DE, but rather get a tax credit?
Cash out before you step on german soil. They have no business taxing what's been earned while you were not a german resident and so you'll only pay some insignificant swiss tax withholding. Ideally make sure you have some kind of proof of your arrival date like an airplane ticket.
CH should refund the withholding if it was paid after you left the country and you show them that you've reported it to tax authorities in your new country.
Thanks Ivank for the input. Yes, cashing out at least the non-oblig part of 2nd pillar does seem to be a simpler approach - provided that I can get that done before registering/working in Germany.
I had a brief call with the Vested Benefits Foundation and they said this is fine as long as I can show proof of deregistering and some other formalities (they are posting me the docs). They seem to be able to do the transfer on a specific date, so I shouldn't need to wait too long between deregistering in CH and registering in DE.
Has anybody any first hand experience receiving the cash-out before registering in their new country (specifically Germany would be most interesting)? Any advice?
I am also moving to Berlin, Germany soon, from Lausanne.. I would like to know also possibilities on this.. I am a non-EU citizen (Turkish) and someone told me that cashing out depends on whether Switzerland has agreements with your home country or not.. if they do have an agreement, you might possibly carry it your retirement in your home country as well.. If I learn anything new, I will post it here.. And how long this cashing out last? Can we not rest it in the mean time in our Swiss bank accounts anyway? I leave only for one year to Germany so will most probably keep my bank account still here, in case I return to Switzerland..
let me know from your experiences on how to cash vs. carry it to home country.. and also how long the cashing process lasts..
thank you and happy full moon soon (wed, November 24) to everyone..!