Retirees considering a move abroad should take several factors into account. Firstly, it is crucial to research the entry and residency requirements of different countries, as these can vary significantly. Some countries may be more hesitant to grant long-term residency permits to foreign retirees, although investing in the country can improve prospects. It is essential to familiarize oneself with the regulations before making the move.
Another important aspect to consider is the tax situation. Retirees are advised to consult a local tax expert, as there may be potential pitfalls, such as retroactive taxation in the first year. Seeking assistance with the initial tax declaration in the new country is recommended, and hiring a trustee can be a wise investment. It is also advisable to seek advice from the local Swiss community on how to proceed.
Retirees should be aware of potential complications when accessing capital from their pension funds or the third pillar. While there is no withholding tax on AHV pensions in Switzerland, capital payments from pension funds or the third pillar may be subject to withholding tax, depending on the country of residence. However, this does not necessarily exempt retirees from taxation by the country of residence. Depending on the double taxation agreement, it may be possible to reclaim the Swiss withholding tax. Retirees should be prepared for potentially higher tax burdens in their new country, as it is uncommon to completely avoid taxation.
When leaving Switzerland, there is still a limited tax liability for Swiss properties and business income. Dividend payments from Swiss companies or bond interest payments are subject to a withholding tax of 35%, which can be partially reclaimed based on double taxation agreements with the country of residence.
Retirees are advised to arrange health insurance well in advance, ideally before moving abroad. The situation is relatively well regulated when relocating to an EU or EFTA country. However, it can be more challenging when moving to countries outside the EU or EFTA, and the question of international health insurance arises depending on the country. It is recommended that retirees moving to non-EU and non-EFTA countries consider taking out an international supplementary insurance policy with a Swiss health insurance provider before the move. However, it is important to note that a health test may be required.
Prior to the move, it is important to discuss banking arrangements with the current bank and explore potential offers for the destination country. The ASO advises retirees to have a conversation with their bank and clarify any offers available for the target country.
This News Article was automatically generated by Bob the Bot (AI)
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