Are there any special regulations for cross-border commuters in retirement age?
April 11, 2023 | 60,00 EUR | answered by Thomas Schottmann
Dear tax advisor,
My name is Selma Gehrmann and I have been working as a cross-border commuter between Germany and Switzerland for many years. I am now approaching retirement age and am concerned about my financial situation in retirement.
As a cross-border commuter, I have so far benefited from the tax advantages provided by the agreement between Germany and Switzerland. However, I am now wondering if there are special regulations for cross-border commuters in retirement. How will my pension from Germany affect my tax situation in Switzerland? Should I expect double taxation? Are there ways to avoid this?
I am worried that I may be financially disadvantaged in retirement and would like to take early measures to optimize my situation. Can you provide me with information on the tax implications of my pension as a cross-border commuter and suggest possible solutions?
Thank you in advance for your help and support.
Sincerely,
Selma Gehrmann
Dear Ms. Gehrmann,
Thank you for your question regarding your tax situation as a cross-border commuter in retirement age. It is completely understandable that you are concerned about your financial future and wish to take measures early on to prevent any potential disadvantages.
In retirement age as a cross-border commuter between Germany and Switzerland, there are indeed specific regulations that affect your tax situation. In general, your pension from Germany will be taxed in Switzerland. This means that as a cross-border commuter in Switzerland, you are subject to taxation, even for your German pension.
However, double taxation can be avoided, as there is a double taxation agreement between Germany and Switzerland. This agreement stipulates that the taxes you have already paid in Germany on your pension can be credited in Switzerland. Therefore, your pension will not be taxed twice and you should not have to fear any financial disadvantages.
To optimize your tax situation in retirement age, I recommend seeking advice from a tax advisor early on. Together, you can analyze your individual situation and discuss possible optimization measures. There are various tax planning options to minimize your tax burden and optimize your financial situation.
It is also important that you inform yourself in a timely manner about your pension entitlements in Germany and Switzerland to get an overview of your income in retirement age. Depending on the amount of your pension entitlements, your tax situation may change accordingly.
Finally, I recommend regularly reviewing your tax situation and making adjustments if necessary to avoid financial disadvantages in retirement age.
I hope my information was helpful to you and I am available for further questions.
Best regards,
Thomas Schottmann
