Switzerland to Spain - tax/pension issues
Sep 24th 2013, 8:35 am
#1
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Thread Starter
Joined: Sep 2011
Posts: 25
Switzerland to Spain - tax/pension issues
Hello all,
I need some advice.
I am currently resident in Switzerland and live/work here.I have been offered a job , with my current employer , to transfer to Spain to be based out of my home office. I bought a property last year near Alicante. This is a great opportunity for my employer to reduce costs and for me to cruise to retirement in 2/3 years.
There are 2 issues:-
1. I want to remain in the Swiss pension scheme that I am currently in as I have the option of taking the money pot with me when I retire (as opposed to a pension )
2. Health insurance. I am currently covered by AXA and following some health issues this year I wonder if a Spanish company would accept me?
So a question – would it be possible to be paid from Switzerland and be taxed at Swiss rates while resident in Spain? Maybe as a consultant? Clearly I do not want to pay tax in Spain at much higher rates than here.
I have been offered a full relocation package and will be on a Spanish salary rather than a Swiss salary which works out at 77000euros plus bonus. This is a lot less than my current Swiss salary and I have to make a mental adjustment to see less cash coming in each month although I do believe this is a good offer.
Anybody know how I might best proceed? I guess a financial consutant might be an option – but who? KPMG?
I need some advice.
I am currently resident in Switzerland and live/work here.I have been offered a job , with my current employer , to transfer to Spain to be based out of my home office. I bought a property last year near Alicante. This is a great opportunity for my employer to reduce costs and for me to cruise to retirement in 2/3 years.
There are 2 issues:-
1. I want to remain in the Swiss pension scheme that I am currently in as I have the option of taking the money pot with me when I retire (as opposed to a pension )
2. Health insurance. I am currently covered by AXA and following some health issues this year I wonder if a Spanish company would accept me?
So a question – would it be possible to be paid from Switzerland and be taxed at Swiss rates while resident in Spain? Maybe as a consultant? Clearly I do not want to pay tax in Spain at much higher rates than here.
I have been offered a full relocation package and will be on a Spanish salary rather than a Swiss salary which works out at 77000euros plus bonus. This is a lot less than my current Swiss salary and I have to make a mental adjustment to see less cash coming in each month although I do believe this is a good offer.
Anybody know how I might best proceed? I guess a financial consutant might be an option – but who? KPMG?
Sep 24th 2013, 4:28 pm
#2
Joined: Jun 2006
Location: Granada Costa
Posts: 10,899
Re: Switzerland to Spain - tax/pension issues
I can't see why you can't take the money pot with you to Spain but be aware that if you take a lump sum out of it, it will be taxed in Spain - I don't know if that would be the case in Switzerland.
As for health insurance, AXA is a EU wide company and you may be able to transfer the cover to Spain. If you have to take out a new policy then pre-existing conditions will probably be excluded.
As for how you are paid, that is irrelevant as you will pay Spanish tax on your worldwide income is you are tax resident in Spain, irrespective of how the payments are made.
A good tax consultant should be able to offer you advice on any other options that you might have and the fee could be money well spent.
As for health insurance, AXA is a EU wide company and you may be able to transfer the cover to Spain. If you have to take out a new policy then pre-existing conditions will probably be excluded.
As for how you are paid, that is irrelevant as you will pay Spanish tax on your worldwide income is you are tax resident in Spain, irrespective of how the payments are made.
A good tax consultant should be able to offer you advice on any other options that you might have and the fee could be money well spent.
Sep 26th 2013, 8:08 am
#3
Just Joined
Thread Starter
Joined: Sep 2011
Posts: 25
Re: Switzerland to Spain - tax/pension issues
Thanks Fred. Consultant it is then.
