Buying an apartment in Germany - Page 3

blasdelezo · #41 24.05.2020, 18:19

	Quote:	mmcc
	I also enquired about this option of using my Swiss pillar 2 funds to purchase a property in Germany. My German tax adviser told me that the pillar 2 funds would be treated the same as if you simply withdrew them and so subject to 26.375% capital gains tax. At that point, I gave up and have left my pillar 2 in Switzerland. If you have success with this approach, I am very interested to learn the details!

I could be in the future in the same situation (CH to DE, buying an apartment there). What was your rationale of leaving it in CH and not taking it even paying the 26%? Is it less tax at retirement age? I thought that the tax will be a flat tax for capital gains no matter what. I.e. it does not matter now or in the future, right?

mmcc · #42 25.05.2020, 11:27

I haven't got a clear picture of what happens at retirement. There may also be some tax efficient scenarios involving leaving Germany, at least temporarily, sometime before retirement. If anyone has experience here, it would be great to hear about it.

blasdelezo · #43 26.05.2020, 10:30

	Quote:	mmcc
	I haven't got a clear picture of what happens at retirement. There may also be some tax efficient scenarios involving leaving Germany, at least temporarily, sometime before retirement. If anyone has experience here, it would be great to hear about it.

Just FYI, VIAC launched today the 2nd pillar vested benefits account, you can park all your 2nd pillar there and self manage/invest in stocks with a highest fee of 0.7.