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Old 23.03.2014, 20:38
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Tax on withdrawal of AHV + 2nd Pillar- freizugikeitskonto

Hi all,

As i ( Non-EU) am moving out of Switzerland, i plan to withdraw the AHV and the 2nd Pillar contribution. I heard that to reduce the tax on withdrawal,we can move the money to a "freizugikeitskonto" in Schwyz canton which has the lowset rate of such tax and then move the money to my native country.

Does anyone have more insight into this process and know whether this actually works?

Thanks in advance for your inputs.
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Littlestar.
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Old 23.03.2014, 20:47
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Tax on withdrawal of AHV + 2nd Pillar- freizugikeitskonto

It works, however the canton of choice depends on the value of the fund. Expect to pay 500 in fees to do this.

You need to be concerned of any taxation in the country you go to as you will not be tax resident in CH when you get the payout
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Old 23.03.2014, 21:40
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Re: Tax on withdrawal of AHV + 2nd Pillar- freizugikeitskonto

http://www.hev-schweiz.ch/erwerben-f...kel/?tx_ttnews[tt_news]=3133&cHash=5f76e0960c15fa8ea738c3272d6dc49a

https://www.google.ch/#q=Steuern+spa...kassenkapitals
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Old 24.03.2014, 10:48
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Re: Tax on withdrawal of AHV + 2nd Pillar- freizugikeitskonto

Thanks for the update.

Anyone have experience with the below company for the move of money.

http://www.pens-expert.ch/en/pensexp...ich-office.php

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Littlestar
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Old 24.03.2014, 18:48
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Re: Tax on withdrawal of AHV + 2nd Pillar- freizugikeitskonto

For the ahv Idont think it can get transferred to Swvyz or anywhere as it sits with the gov, you just ask for it. But you only get the pension part (not the unemployment and disability etc parts which were insurance during your employment) and that only when you move to certain countries outside the eu, eg not usa, canada etc.

For the pillar 2 you can do it but 3 points to be aware
- must wait until next year to withdraw otherwise they still use your old residence canton for taxation
- fees are high, so only worth for high amounts, but in that case there is an argument that it may actually be a good idea to keep it and have a pension in the future. Remember the pension pot is part what you paid and part what the job paid in, so by cashing you only get your part
- you need to research taxation in your new country. Sometimes if you cash the pension right away near the time you moved you dont pay tax in the new country, but if you wait 1 year you may have to pay tax in the new country when you receive the money.
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Old 24.03.2014, 22:39
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Re: Tax on withdrawal of AHV + 2nd Pillar- freizugikeitskonto

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For the ahv Idont think it can get transferred to Swvyz or anywhere as it sits with the gov, you just ask for it. But you only get the pension part (not the unemployment and disability etc parts which were insurance during your employment) and that only when you move to certain countries outside the eu, eg not usa, canada etc.

For the pillar 2 you can do it but 3 points to be aware
- must wait until next year to withdraw otherwise they still use your old residence canton for taxation
- fees are high, so only worth for high amounts, but in that case there is an argument that it may actually be a good idea to keep it and have a pension in the future. Remember the pension pot is part what you paid and part what the job paid in, so by cashing you only get your part
- you need to research taxation in your new country. Sometimes if you cash the pension right away near the time you moved you dont pay tax in the new country, but if you wait 1 year you may have to pay tax in the new country when you receive the money.
If cashed in you will get the full value of the fund ie employer & employee contributions. However due to legally required insurance, quite a lot will be lost.
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