Captial Withdrawal after retirement and moving to Belgium

Hello,

I am 64 years old and already retired.  I withdrew my 2nd pillar from the libre passage and paid the withholding tax to Swiss Tax Authority.

I planned to move to Belgium in a year or two.

I saw many articles on the internet about double tax agreement between Switzerland and EU.

If someone withdraws the capital on the 2nd and 3rd pillars, he/she will pay the withholding tax in the destination country and can request the Swiss Tax Authority to reimburse the paid tax

Will this apply to me if I already retired for sometime before leaving Switzerland?

Do I still have to pay withholding in Belguim?

Thank you in advance for your advice.

No. The withholding tax is not relevant in your case.

If you are living in Switzerland when you withdraw your pillar 2 and pillar 3a, then you pay the Swiss retirement capital withdrawal tax. This is a one-time tax that applies in the year when you withdraw pillar 2 or pillar 3a money (either at retirement, or early to buy a house, etc.). This is basically an income tax, but the tax rate is much lower than the rates used for federal and cantonal income tax.

Now that you have withdrawn the money from the pillar 2 and pillar 3a and paid the Swiss capital withdrawal tax, that money only counts as wealth, but not as income. So you only declare that money as personal wealth along with your other assets. This is true both in Switzerland and in Belgium.

In Switzerland there is a wealth tax, so you may pay tax on that wealth. But Belgium does not have a wealth tax per se. There is a tax called the tax on securities accounts (TSA) that is levied on custody accounts for stocks and bonds, etc. if the account balance is 1 million euros or more, so it doesn't apply to most people.

Dear karlweber,

Thank you very much for such a good news.