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Old 08.07.2015, 12:10
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Receiving Canadian pension in Switzerland..

I'm wondering if there are any Canadians who see this message and can comment on situation regarding pensions. My parents are looking to move here, probably under the family reunification program. They hold both a Canadian passport as well as one from Slovakia. They would easily qualify to stay here from my understanding.

The question is mainly related to the company pension and canadian pensions my father receives from back home. Will he need to pay taxes on this here in Switzerland? Will he need to pay taxes on this back in Canada? Are there some deductions/taxes for canadians living overseas / Switzerland?

I realize I could ask revenue canada directly, which I probably will depending on the answers I get here.
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Old 08.07.2015, 13:30
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Re: Receiving Canadian pension in Switzerland..

Do they plan to live with you? Required under family reunification and you must already be supportng them, not them support themselves.

https://www.ch.ch/en/family-reunification-eu-efta

"Parent(s) and grandparent(s), provided that they financially depend on the petitioner (they must prove that they were dependent on the petitioner before entering Switzerland)."

https://www.bfm.admin.ch/bfm/en/home...hweiz/faq.html

Not sure if this is a recent change or not. I don't recall seeing the requirement that they be financially dependent before moving over before for EU nationals, but my brain isn't what it used to be. And the page was modified for something in January this year - unfortunately not easy to find out what was changed.

Whether they would be able to meet the requirements on their own to move here would be a matter for the cantonal migration office to decide.

Yes, I believe the pensions would be taxed here, but there may well be a double taxation policy in place.

If you're in Switzerland on your Canadian passport then you're classed as a non-EU and your parents wouldn't qualify for family reunification in any case. Only your spouse and any children under 18 qualify, assuming you hold a C permit. If you hold a B then there's no automatic right to family reunification, it's down to the individual cantonal migration offices to make the decision.

https://www.ch.ch/en/family-reunification/
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  #3  
Old 08.07.2015, 16:46
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Re: Receiving Canadian pension in Switzerland..

I'm here on a B visa with my Slovak passport and not Canadian one. They will have some monthly income from pension + the money from the house they sold in Canada recently. So I don't think money is an issue.

Either we can do a family reunification or they can come on their slovak passport then as retired people.

Still doesn't answer my question about the canadian authorities and taxation. I think only someone who is getting a canadian pension and living here could answer this..

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Do they plan to live with you? Required under family reunification and you must already be supportng them, not them support themselves.

https://www.ch.ch/en/family-reunification-eu-efta

"Parent(s) and grandparent(s), provided that they financially depend on the petitioner (they must prove that they were dependent on the petitioner before entering Switzerland)."

https://www.bfm.admin.ch/bfm/en/home...hweiz/faq.html

Not sure if this is a recent change or not. I don't recall seeing the requirement that they be financially dependent before moving over before for EU nationals, but my brain isn't what it used to be. And the page was modified for something in January this year - unfortunately not easy to find out what was changed.

Whether they would be able to meet the requirements on their own to move here would be a matter for the cantonal migration office to decide.

Yes, I believe the pensions would be taxed here, but there may well be a double taxation policy in place.

If you're in Switzerland on your Canadian passport then you're classed as a non-EU and your parents wouldn't qualify for family reunification in any case. Only your spouse and any children under 18 qualify, assuming you hold a C permit. If you hold a B then there's no automatic right to family reunification, it's down to the individual cantonal migration offices to make the decision.

https://www.ch.ch/en/family-reunification/
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Old 08.07.2015, 16:51
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Re: Receiving Canadian pension in Switzerland..

Quote:
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Still doesn't answer my question about the canadian authorities and taxation. I think only someone who is getting a canadian pension and living here could answer this..
I think you will need to talk to the Canadian Revenue for the answer if it can be paid gross to non residents. In any case it will be taxable in CH & any tax deducted in Canada can be offset against CH tax which is probably lower depending on there they live in CH.
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Old 08.07.2015, 16:53
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Re: Receiving Canadian pension in Switzerland..

Ok thanks.. I'll reach out to them. I know of a friend who lives in Slovakia and gets his pension in full without deductions and pays no local tax either.

But I need some more swiss specific info. Thanks..
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Old 08.07.2015, 17:50
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Re: Receiving Canadian pension in Switzerland..

There is an agreement between Canada and Switzerland:
Art. 18
Quote:
1. Les pensions et les rentes provenant d'un Etat contractant et payées à un résident de l'autre Etat contractant, y compris les paiements en vertu de la législation sur la sécurité sociale d'un Etat contractant, sont imposables dans l'Etat d'où elles proviennent et selon la législation de cet Etat. Toutefois, dans le cas de paiements périodiques d'une pension ou d'une rente (à l'exclusion des paiements forfaitaires découlant de l'abandon, de l'annulation, du rachat, de la vente ou d'une autre forme d'aliénation de la rente, et des paiements de toute nature en vertu d'un contrat de rente le coût duquel était déductible, en tout ou en partie, dans le calcul du revenu de toute personne ayant acquis ce contrat), l'impôt ainsi établi ne peut excéder 15 % du montant brut du paiement
https://www.admin.ch/opc/fr/classifi...index.html#a18
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Old 08.07.2015, 17:52
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Re: Receiving Canadian pension in Switzerland..

From this it looks like it is taxable in Canada only.
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Old 08.07.2015, 18:06
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Re: Receiving Canadian pension in Switzerland..

OP, I sent you a pm. Sorry, forum. Maybe at the end of his/her inquiry and when all the dust settles, the OP will give Canadians a list with the do's and the don'ts when deciding to settle abroad.

Last edited by FunnyBone; 08.07.2015 at 18:39.
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Old 08.07.2015, 19:28
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Re: Receiving Canadian pension in Switzerland..

My husband receives a pension from Canada. It only gets taxed in Canada, but at a rate of 15%. Same with company pension, wich he has in a RIF. Whatever he takes out of that is taxed there as soon as he takes it out. Keep in mind that the Franc is much stronger than the Canadian $. What he ends up getting is very little. I am much younger and work full time, but we could not survive here on just Canadian pensions.
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Old 13.07.2015, 23:21
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Re: Receiving Canadian pension in Switzerland..

See article 18 of the Canada-Switzerland Tax Treaty: http://www.fin.gc.ca/treaties-conven...suisse-fra.asp
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