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Old 26.11.2009, 22:26
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3rd Pillar Questions

Hi guys,

I've been reading alot about the 3rd pillar. I even went to an seminar about it tonight!

I believe I mostly understand it.. but I still have one question.

Let me put it into a situation...

I stay in switzerland for say 3-5 years. I have a 3rd pillar with a bank. I put in the 6,500CHF per year. Each year I get my tax back from the government based on the 6,500 @ my marginal tax rate, lets say its 1,000-2000CHF. And then end of these 3-5years I decide to buy a house (outside of Switzerland), and withdraw the full cash, to use towards the deposit.

How much taxes do I pay on the withdrawal? Is it worthwhile for me to do this, or is it really only interesting as a true pension sceheme?

Thanks in advance for any tips on this interesting, but tricky subject!
Alan
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Old 29.11.2009, 18:28
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Re: 3rd Pillar Questions

i dont know if you can use it to buy a house abroad(i think you need to leave the country) anyway here is a calculator on the tax

https://calculators.credit-suisse.com/p/d/calc?calculator=capitalwithdrawal〈=en&fullScreen=f alse
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Old 29.11.2009, 20:52
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Re: 3rd Pillar Questions

Thats interesting. It seems like I wouldn't pay much taxes on withdrawing the cash.

The example seems like this. I pay in 3 years, say 20k. Each year I get back ~1500-2000CHF in tax refund. Finally I withdraw the money, and tax around 550CHF on the 20k.

It seems hard to believe. I've have a net earning of around 4k.

Can anyone verify this?

Cheers!
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Old 29.11.2009, 21:05
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Re: 3rd Pillar Questions

hi there
we're also in the process of finding out more and understanding how it works - what i think you need to keep in mind, is that in the fist 2 years most of the money goes to admin fees, make very sure that you can get the full amount that you deposited back in 3 years...
good luck! and pls pm me with any interesting conclusions you come to - we're seeing the agents monday night...
sd
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Old 29.11.2009, 21:06
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Re: 3rd Pillar Questions

Quote:
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Thats interesting. It seems like I wouldn't pay much taxes on withdrawing the cash.

The example seems like this. I pay in 3 years, say 20k. Each year I get back ~1500-2000CHF in tax refund. Finally I withdraw the money, and tax around 550CHF on the 20k.

It seems hard to believe. I've have a net earning of around 4k.

Can anyone verify this?

Cheers!
Your new tax jurisdiction might want to tax this windfall.
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Old 02.12.2009, 09:55
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Re: 3rd Pillar Questions

Still aint really sure about how much is taxed when withdrawing the cash after some years... I would use a bank rather then an insurance co.

Anyone?
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