How can I as a cross-border commuter optimize my retirement savings from a tax perspective?
February 15, 2023 | 60,00 EUR | answered by Paula Bauer
Dear tax advisor,
I am Babette Bacigalupo and work as a cross-border commuter in Switzerland. I am registered in Germany and commute to work in Switzerland on a daily basis.
I am thinking about how I can optimize my retirement planning from a tax perspective. Currently, I am insured in Switzerland and also contribute to the Swiss AHV. I have not yet built up any retirement savings in Germany.
I am worried that I may not be financially secure enough in old age, especially since I am in a unique situation as a cross-border commuter. I wonder if there are special options for cross-border commuters to optimize their retirement planning from a tax perspective. Are there specific tax aspects that I should consider as a cross-border commuter?
What pension products or measures could be suitable for me as a cross-border commuter to optimize my retirement planning from a tax perspective? Are there any specific tax benefits that I can take advantage of as a cross-border commuter? How can I ensure that my retirement planning is tax-efficient in both Switzerland and Germany?
I would greatly appreciate it if you could help me optimize my retirement planning as a cross-border commuter and provide me with possible solutions.
Sincerely,
Babette Bacigalupo
Dear Mrs. Bacigalupo,
Thank you for your inquiry regarding the tax optimization of your retirement provision as a cross-border commuter. It is understandable that you are concerned about your financial security in old age, especially in your specific situation as a cross-border commuter registered in Germany and working in Switzerland.
As a cross-border commuter, there are indeed some particularities to consider when it comes to the tax planning of your retirement provision. First and foremost, it is important to know that as a cross-border commuter, you are usually subject to tax in both Switzerland and Germany. This means that you must pay taxes on your income in both Switzerland and Germany.
Regarding retirement provision, there are various pension products and measures that could be suitable for you as a cross-border commuter. In Switzerland, you have already mentioned that you contribute to the AHV. Additionally, you could contribute to the occupational pension scheme (BVG) to further strengthen your retirement provision. These contributions are tax deductible and can help reduce your tax burden.
In Germany, you have not yet built up any retirement provision. Here, for example, you could invest in a private pension insurance or in a company pension scheme. These contributions are also tax deductible and can reduce your tax burden.
It is important to ensure that your retirement provision is tax-efficient in both Switzerland and Germany. I recommend consulting a tax advisor who is familiar with cross-border tax consulting. They can help you optimize your retirement provision and make the most of tax benefits.
In summary, there are special opportunities for cross-border commuters to optimize their retirement provision tax efficiently. By contributing to the AHV and BVG in Switzerland, as well as investing in a private pension insurance or company pension scheme in Germany, you can improve your financial security in old age and benefit from tax advantages.
I hope that this information was helpful to you. If you have any further questions or would like personalized advice, I am at your disposal.
Best regards,
Paula Bauer
