Taxation of cross-border commuters D-CH married - tax classes and taxation of retirement provision 3a
Dear Sir or Madam,
The following situation:
I currently have my residence in Switzerland and also work there. Consequently, I pay tax on my income in Switzerland with a B residence permit.
I have also taken out a voluntary retirement savings plan (3a), which I have split into a savings account at the bank and a policy with an insurance company.
In August of this year, I will marry my girlfriend. She has her residence in Germany and works as a teacher in Germany (a civil servant). From September onwards, we will establish our joint residence in Germany and I will continue to work as a cross-border commuter in Switzerland. My girlfriend is Catholic and I have no denomination.
Questions:
1. For the month of August, despite being married, can we each maintain our respective residence? Does this mean I will continue to pay taxes on my income in Switzerland and my wife in Germany? Is it still possible to split our tax classes, for example, her in class V and me in class III, even though this does not affect me initially as I am taxed in Switzerland?
2. From September with a joint residence. According to the tax class calculator, with my significantly higher income, should I be in tax class III and my wife in class V? Is it true that I will still pay church tax proportionally, even though only my wife is a member of the church (due to joint assessment)? Would we both be in tax class I if we filed separate tax returns?
3. Regardless of the tax classes chosen, will everything be calculated jointly at the end of the period (year)? Does this mean that we may have more net income available during the year, but regardless of the chosen tax class model, everything will ultimately balance out in the tax return?
4. When leaving Switzerland, I have the option to cash out my tied retirement savings plan (3a). If it is possible in August, will it only be taxed separately in Switzerland?
5. What happens if I already have my residence in Germany (referring to question 4)? In that case, the retirement savings amount in Switzerland will be taxed separately at the source. Would the amount then need to be taxed again in Germany, if so, at what rate? Will retirement benefits (even when paid out in old age after the policy expires) also be taxed again in Switzerland and Germany?
The background for these questions is whether I should cash out my retirement savings early and accept losses in order to avoid taxation in Germany later on. Otherwise, I could leave the retirement savings in Switzerland until the end of the term, but this only makes sense if I do not have to pay a high tax in Germany afterwards.
6. Are there any special considerations regarding the civil servant status of my wife (restrictions, tax benefits, etc.)?
