Retiring early? Where?

[evergreen]

What are the budgets living there? What are the deductions, if you ever calculated?

The general income tax rate is15%.
Freelancers (with a trade licence) can deduct 70% of their income and are taxed on the remaining 30%. Capital gain tax is not taxed if it was held for at last 3 years which is convenient for long term passive investor. There is no wealth tax
For employees, health insurance and social premiums are paid by the employer and in most companies the HR departement fills the tax return for the employees. Only in complex cases like multiple employments or real estate one as to fill the tax return themself or ask a tax advisor to do so.
For freelancers, the social + health insurance contributions are about CHF 190.-/month (adjusted every year to the average income)

Cost of life: czech beer is cheap and good
More seriously, housing rental recently became expensive, but still according to Numbeo, cost of living in Prague is 45% lower than in Fribourg (without rent) and 40% including rent.

 

[Badomb]

The general income tax rate is15%.
Freelancers (with a trade licence) can deduct 70% of their income and are taxed on the remaining 30%. Capital gain tax is not taxed if it was held for at last 3 years which is convenient for long term passive investor. There is no wealth tax
For employees, health insurance and social premiums are paid by the employer and in most companies the HR departement fills the tax return for the employees. Only in complex cases like multiple employments or real estate one as to fill the tax return themself or ask a tax advisor to do so.
For freelancers, the social + health insurance contributions are about CHF 190.-/month (adjusted every year to the average income)

Cost of life: czech beer is cheap and good
More seriously, housing rental recently became expensive, but still according to Numbeo, cost of living in Prague is 45% lower than in Fribourg (without rent) and 40% including rent.

Thanks for sharing. Sounds great indeed. Very practical hints and numbers to consider.
Some of my friends (a few) got CZ pass many years ago. They are happy and consider it their main place/passport to live, work, retire.
I wonder if I am missing on something.

 

[markoes]

Hi everyone. A bit late response. I moved to Switzerland last year to reach my FIRE dreams. And after retirement I plan to move back to Slovenia where I come from. The country is very nice, prices are a bit below european average I would say, (increased a lot in last few years, as everywhere). One thing in Slovenia is really good. If you hold to a certain asset like Stocks capital gains tax after 15 years is 0%. As purchase date for assets counts the date of the first purchase, so if I start selling my ETFs in Slovenia in 13 years I will pay 0 capital gains tax.

 

[Rebecca]

I have not decided definitively but am considering southern Germany. The cost of living is generally lower there than in Switzerland but that may be offset by capital gains taxes.

I have found it difficult to fully assimilate to Deutschschweiz culture and feel that will be impossible even if I could speak perfect high German. Most of my friends are other foreigners and "international Swiss" (which I define as Swiss people partnered with foreigners and/or have lived for substantial periods abroad). I feel more comfortable with German culture and appreciate the friendliness of many Germans, they remind me of people in my home country (the United States).

 

[Clara47]

Fantastic topic! I love the idea of retiring in France, for example, but I never thought about what it will mean in terms of taxes. Imagine I will be, for example, living at a budget of 50K/year (whatever currency you choose), what will it mean to me to be taxed for this amount in CH or FR?

 

[Baptiste Wicht]

Fantastic topic! I love the idea of retiring in France, for example, but I never thought about what it will mean in terms of taxes. Imagine I will be, for example, living at a budget of 50K/year (whatever currency you choose), what will it mean to me to be taxed for this amount in CH or FR?

I have no idea in France. But you will not "receive" 50K CHF per year. Some of it will be in dividends (less than half) and hte other in capital gains from selling shares.

In Switzerland, you will also have the wealth tax on top of the income tax (for dividends) but no capital gains tax. The exact numbers will be different for each canton.