Hi There,
I would like to submit the following case study (mine

)and I wish to get some advice from someone who already went through the same procedure.
I am 48yo, Italian, I hold a C permit and in a couple of years, I will leave permanently Switzerland and move back to Italy.
I want to withdraw my second and third pillar funds upon departure.
I do not plan to start and lucrative activity in Italy and will not need to pay any social contributions. I will be therefore entitled to withdraw also the mandatory part of my second pillar. This has been already discussed in some previous threads in this forum.
I know how to optimise the capital withdrawal tax in Switzerland (i.e. moving my vested benefit to Kanton Schwyz before departure and get taxed there)
I am however a bit confused on the taxation the Italian fiscal authorities might apply to my cashed-out pension funds.
Considering that my plan is to withdraw my pension funds asap while departing from Switzerland, here is my main questions
1)
I believe I can receive the money from my vested benefits in 0-2 months after leaving Switzerland. Will the Italians consider those money just as part of my after wealth, together with my personal savings and investments upon moving to Italy?
I am aware that if I withdraw my vested benefits later on (few months/year later), when I am already Italian fiscal resident , they won’t be considered as wealth and a different tax rate applies.
2)
If I am going to be taxed, how will they tax me?
Italy and Switzerland signed a bilateral agreement on the taxation rate of the AHV pension(1st pillar). A one off 5% tax is applied if the pension (when you reach retirement age) is transferred from Switzerland directly to authorised Italian bank institution. 5% is a great deal and the same applies to the 2nd pillar pension if received as monthly payment after retirement age.
However, the info about the taxation on one time withdrawals from vested benefits are not clear and sometimes discording.
Has anyone in this forum done that?
Any experience you can share is very much appreciated.
Thanks a lot!