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  #81  
Old 19.10.2018, 20:38
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Re: Leaving to live in the EU & cashing in a Swiss Pension

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If you leave Switzerland to live in the EU it's often possible to take your pension fund in full as many countries don't require compulsory insurance.

Further info from http://www.sfbvg.ch/xml_3/internet/E...on/d51/f62.cfm

I have today received my full Pillar 2 fund in CASH, I did not bother to move the fund to a lower tax canton as the saving was less than 2% of the capital & I thought it would take extra time & not worth the hassle.

Getting confirmation from the LOB fund took almost 2 months, payout within 1 week of receiving the signed paperwork from myself & proof of not marrying since leaving CH.
This is very interesting. I have read the doc for the UK http://www.verbindungsstelle.ch/docu...blattUK-en.pdf

If I understand correctly the way to cash the second pillar in full is to move to the UK without getting an employment until you cash out the money. Once you start an employment you'll be enrolled to the UKs retirement system which will lock your 2nd pillar money in Switzerland.
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  #82  
Old 19.10.2018, 20:51
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Re: Leaving to live in the EU & cashing in a Swiss Pension

What vested benefits account in Switzerland would you recommend?
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  #83  
Old 19.10.2018, 21:43
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Re: Leaving to live in the EU & cashing in a Swiss Pension

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What vested benefits account in Switzerland would you recommend?
I used Pictet in Geneva, not quite the lowest tax canton, however they had the best customer services in whatever language you wanted. Very uncomplicated come payout as they accepted my leaving certificate stating I was single with no requirement for further proof unlike most other companies. Paid within 3 days of me sending the paperwork.
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  #84  
Old 21.10.2018, 09:42
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Re: Leaving to live in the EU & cashing in a Swiss Pension

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I used Pictet in Geneva, not quite the lowest tax canton, however they had the best customer services in whatever language you wanted. Very uncomplicated come payout as they accepted my leaving certificate stating I was single with no requirement for further proof unlike most other companies. Paid within 3 days of me sending the paperwork.
Thanks a lot. Just how is the tax calculated? Are you taxed on the entire amount or just the interest earned? I really have no clue about this.
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Old 21.10.2018, 10:02
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Re: Leaving to live in the EU & cashing in a Swiss Pension

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Thanks a lot. Just how is the tax calculated? Are you taxed on the entire amount or just the interest earned? I really have no clue about this.
The entire amount, I invested the money in Fundsmith & the increase in a couple of months more than covered the slightly higher tax rate.
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  #86  
Old 21.10.2018, 13:24
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Re: Leaving to live in the EU & cashing in a Swiss Pension

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The entire amount, I invested the money in Fundsmith & the increase in a couple of months more than covered the slightly higher tax rate.
I really lack the investing skills to try and make up for the higher tax. On a second pillar account of 100,000 CHF is there much difference between Geneva tax and, say, Zug?
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Old 21.10.2018, 13:42
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Re: Leaving to live in the EU & cashing in a Swiss Pension

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I really lack the investing skills to try and make up for the higher tax. On a second pillar account of 100,000 CHF is there much difference between Geneva tax and, say, Zug?
On a larger amount it was about 1.5%
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Old 21.10.2018, 20:40
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Re: Leaving to live in the EU & cashing in a Swiss Pension

Did you have to pay a commission (a % of your second pillar savings) when you opened the "Freizügigkeitskonto" "compte de libre passage" ? the Picet document I found on their website mentions 3% which seems very high to me.
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Old 21.10.2018, 20:53
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Re: Leaving to live in the EU & cashing in a Swiss Pension

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Did you have to pay a commission (a % of your second pillar savings) when you opened the "Freizügigkeitskonto" "compte de libre passage" ? the Picet document I found on their website mentions 3% which seems very high to me.
No it was free, transferred from a Swiss Life subsidiary "Freizügigkeitskonto" who charged 500 to transfer
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Old 22.10.2018, 15:03
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Re: Leaving to live in the EU & cashing in a Swiss Pension

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The entire amount, I invested the money in Fundsmith & the increase in a couple of months more than covered the slightly higher tax rate.
what kind of tax you need to pay when cashing in?
would malta (or Dubai or HK or Panama) wrinkle help anyhow here?
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  #91  
Old 22.10.2018, 15:15
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Re: Leaving to live in the EU & cashing in a Swiss Pension

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what kind of tax you need to pay when cashing in?
would malta (or Dubai or HK or Panama) wrinkle help anyhow here?
The cost of moving the money will in most cases be far more expensive overall. Commissions are high & depending on where you live you may have further taxes to pay.

I was tax resident in Malta when I cashed mine in & I can't bring my Swiss Pension money to Malta or it's subject to taxation in Malta. The tax bill would have been significantly higher than withholding tax,

Just because the money is tax free in a certain jurisdiction does not mean you have no further liabilities elsewhere in the world.
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Old 22.10.2018, 15:39
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Re: Leaving to live in the EU & cashing in a Swiss Pension

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what kind of tax you need to pay when cashing in?
1) Local tax at source (Place where HQ of the company is who has your pillar 2/3a money). Geneva, otherwise a tax hell, has surprisingly low payout tax. Still, not as low as ZG or SZ.

2) Potential tax of your country of residence.

3) Tax of your country of citizenship, might apply in case you North Korean, Eritrean, or U.S. American.

As 1 and 2 might lead to to double taxation there are various double taxation treaties.

See Rundschreiben 2-146-D-2017
German: https://www.estv.admin.ch/dam/estv/d...6-D-2017-d.pdf
French: https://www.estv.admin.ch/dam/estv/f...6-D-2017-f.pdf
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  #93  
Old 22.10.2018, 16:08
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Re: Leaving to live in the EU & cashing in a Swiss Pension

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As 1 and 2 might lead to to double taxation there are various double taxation treaties.
DDT often only give credit for tax paid in the other country rather than exempting from tax in the other country.
Swiss withholding tax can be reclaimed if it can be shown the money is taxable elsewhere.
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Old 22.10.2018, 16:33
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Re: Leaving to live in the EU & cashing in a Swiss Pension

Just to be sure, is it still possible to transfer the money from a Freizügigkeitskonto-provider to another or must it be done before leaving Switzerland?
Thanks.
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Old 22.10.2018, 16:58
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Re: Leaving to live in the EU & cashing in a Swiss Pension

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Just to be sure, is it still possible to transfer the money from a Freizügigkeitskonto-provider to another or must it be done before leaving Switzerland?
Thanks.
It can be moved but they generally charge 500 admin to do so.
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Old 22.10.2018, 17:22
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Re: Leaving to live in the EU & cashing in a Swiss Pension

Thanks but don't they always charge you money, I mean even if you are still in Switzerland ?
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Old 22.10.2018, 17:30
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Re: Leaving to live in the EU & cashing in a Swiss Pension

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Thanks but don't they always charge you money, I mean even if you are still in Switzerland ?
There are fees taken by the funds, however a 500 account closure is common on pension funds.
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Old 22.10.2018, 17:43
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Re: Leaving to live in the EU & cashing in a Swiss Pension

Okay, so fees are actually the same for a Freizügigkeitskonto transfer (with account closure) if you are in Switzerland or have already left the country, right?
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Old 22.10.2018, 17:58
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Re: Leaving to live in the EU & cashing in a Swiss Pension

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Okay, so fees are actually the same for a Freizügigkeitskonto transfer (with account closure) if you are in Switzerland or have already left the country, right?
Only one correct answer: Do not take anything for granted and read the fine print, terms & conditions as well as price list, of the relevant institutions.
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Old 22.10.2018, 19:11
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Re: Leaving to live in the EU & cashing in a Swiss Pension

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Okay, so fees are actually the same for a Freizügigkeitskonto transfer (with account closure) if you are in Switzerland or have already left the country, right?
I had 2 pension funds Swiss Life & Axa Winterthur, both charged 500 to be transferred to PICTET one was transferred after leaving C.H. PICTET then charged 500 when I cashed out roughly 7 months after leaving CH.
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