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Old 01.04.2020, 14:34
spark spark is offline
Join Date: Feb 2020
Location: Zurich
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Re: Cantonal Tax on Vested Benefit when Leaving Switzerland

SZ is canton of choice for the withdrawal possibility you describe.

But even more important than canton is for you to check the tax treatment of the withdrawal in your new country of residence. What's the point of saving some small X% in swiss tax when you risk having to pay XX% income tax on it to Canada?

The other two withdrawal possibilities:
  • withdraw the money right before you leave Switzerland. You will pay tax according to your last residence canton's rates, not the canton of your pension foundation. It's pointless to switch in this case.
  • withdraw the money while you're in tax residence limbo: after leaving Switzerland but before settling as a resident somewhere else. You pay tax according to domicile canton of pension foundation, so it makes sense to move the money to a foundation in SZ.
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