The Cantonal Government proposes capping the tax burden on pension capital withdrawals from 2024. The resulting overall maximum tax rate in Ticino will be approx. 8% (combined federal, cantonal, and communal).<\/p>\n\n\n\n
Currently, a pension capital withdrawal of CHF 500,000 is taxed at an overall rate of approx. 7%. In this scenario, Ticino\u2019s overall tax rate is the 10th highest among the 26 Swiss cantons. However, for pension capital withdrawals starting at CHF 800,000 (tax rate of approx. 12%), Ticino drops to the 26th rank, becoming the most fiscally expensive Swiss canton. The tax rate further increases as the withdrawal amount rises: approx. 19% for a pension capital withdrawal of CHF 2 million and approx. 24% for a withdrawal of CHF 5 million.<\/p>\n\n\n\n
By comparison, the neighbor cantons, the Canton of Graub\u00fcnden and the Canton of Uri, apply a maximum rate of around 6%. The significant tax burden difference between Ticino and the other Swiss cantons has led many taxpayers to leave Ticino and relocate to other cantons.<\/p>\n\n\n\n
If the proposed tax measure comes into effect, with a maximum tax rate of approx. 8%, the Canton of Ticino will become competitive not only \u2013 as is currently the case \u2013 for pension capital withdrawals of a few hundred thousand Swiss francs, but also for much higher amounts.<\/p>\n\n\n\n
The proposed tax measure aims to discourage individuals from leaving Ticino and transferring their residence to other Swiss cantons, while also attracting new taxpayers to Ticino.<\/p>\n\n\n\n