Swiss pension funds in Portugal after early retirement ?

Finance, Taxes, Banking, Insurance and Retirement
21

Indeed I did have to wait over 6 months., You become tax resident the day you move with the intention of staying. I registered with the tax authorities on the 2nd day & was given a tax no, I also received a tax return for the year of arrival i.e 1 October to 31 December.

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22

When I left Switzerland and wanted to withdraw my pillar 2 BEFORE becoming tax resident in my new EU country I did the following

  • Complete deregistration form (NB on the form it asks for your new address in a foreign country, but does NOT ask for proof of tax residency)
  • Go on holiday for 6 weeks (CH and several other countries)
  • During the 6 week period had the money transferred from the vested account (paying the Swiss withholding tax) into a bank account in my new country of residence
  • Arrive in my new country of residence a few weeks after the transfer and register to pay tax there

The advice I was given was that your destination country is only interested in tax receipts from the date you register for tax residency there. Transfers made prior to this date are classed as wealth and I can prove that tax was paid in Switzerland when the funds were withdrawn. I also understand (but cannot find the source) that during the period until an individual registers for tax in their new domicile, for the purposes of tax, you remain tax resident in Switzerland.

Regarding Portugal, a pillar 2 withdrawal is taxed as a lump sum NOT as income and attracts tax rates between 11% and 28% (this depends on the amount of capital injected during the first half of the pension scheme, and how long you have been paying into the pension scheme).

23

You would still have had Swiss withholding tax deductedā€¦

24

Correct, I mentioned that in my third bullet point.

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25

Iā€™m curious, which other EU countries require registration for tax residency? So far Switzerland was the first one in my international experience.

26

I donā€™t know which other countries require registration for tax residency. In my case I already had a residency permit (Iā€™m from the UK which is unfortunately no longer part of the EU which means I had to secure a residency permit) and when we permanently moved I was informed that I had to officially register to become tax resident in my new country.