Hello,
I'm a newbie here in Switzerland and I think I already made a mistake.
I'm on a B permit and after calculating my tax (Zürich), I'm saving 4000 on taxes by remaining on B permit and not declaring my 3a holdings.
Unfortunately, I invested 7k last year into it, so I don't have access to it anymore. It is sitting in finpension, 99% stocks.
Based on all of these things, is it worth investing in 3a even though I cannot take advantage of the tax deductions for the next 5 years (that is when I probably move out of Zürich or apply for a C permit), or should I invest using IBKR until I reach 80K and then start investing into 3a when I'm on a C permit?
If I understood correctly I don't have to pay taxes on my capital gains up until 80k combined assets (cash + stocks), or am I wrong?
What would be the best strategy for someone who cannot deduct 3a from taxes and might leave Switzerland in the next 15 years?
Any help is much appreciated, thanks.
Conclusion:
It is not a good idea to use 3a without tax advantage due to the 0.39% vs 0.07% fee. The withholding tax of 15% (dividends) is negligible compared to the fees.
I called up finpension and they confirmed that it is not possible for me to take the money out.
After going through all of the cases, the most likely case scenario would be to buy a property in Switzerland or leave the country. If I want to stay in the country, I can only take it out when I retire, or 5 years before retirement. Otherwise I would need to open up a business, this business should be the main source of income, then I can also transfer the money out.
A loophole would be resigning at the current job, opening up a business, transfering the money out, then transferring from business account to personal account and then closing down the business, then finding a new job. Too much hustle for 7k in my opinion, so it is better to leave it there and forget about it until retirement, then transfer out the money. After paying taxes on it, I could invest it back into VT and surprise my kids/wife with it when I die.
Thank you everybody for your answers, much appreciated
I'm a newbie here in Switzerland and I think I already made a mistake.
I'm on a B permit and after calculating my tax (Zürich), I'm saving 4000 on taxes by remaining on B permit and not declaring my 3a holdings.
Unfortunately, I invested 7k last year into it, so I don't have access to it anymore. It is sitting in finpension, 99% stocks.
Based on all of these things, is it worth investing in 3a even though I cannot take advantage of the tax deductions for the next 5 years (that is when I probably move out of Zürich or apply for a C permit), or should I invest using IBKR until I reach 80K and then start investing into 3a when I'm on a C permit?
If I understood correctly I don't have to pay taxes on my capital gains up until 80k combined assets (cash + stocks), or am I wrong?
What would be the best strategy for someone who cannot deduct 3a from taxes and might leave Switzerland in the next 15 years?
Any help is much appreciated, thanks.
Conclusion:
It is not a good idea to use 3a without tax advantage due to the 0.39% vs 0.07% fee. The withholding tax of 15% (dividends) is negligible compared to the fees.
I called up finpension and they confirmed that it is not possible for me to take the money out.
After going through all of the cases, the most likely case scenario would be to buy a property in Switzerland or leave the country. If I want to stay in the country, I can only take it out when I retire, or 5 years before retirement. Otherwise I would need to open up a business, this business should be the main source of income, then I can also transfer the money out.
A loophole would be resigning at the current job, opening up a business, transfering the money out, then transferring from business account to personal account and then closing down the business, then finding a new job. Too much hustle for 7k in my opinion, so it is better to leave it there and forget about it until retirement, then transfer out the money. After paying taxes on it, I could invest it back into VT and surprise my kids/wife with it when I die.
Thank you everybody for your answers, much appreciated