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Old 14.08.2017, 12:11
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Re: Pillar 2 vesting account recommendations?

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Not likely to happen in practice
- Salary less than the BVG minimum, took the rest by dividends
- Went to a limited company immediately on arrival (or very young)
- Staying the course to Switzerland to amortise the cost of setting up the company
- Avoided scrutiny by the tax authorities

Of course, OP also does have a pillar 2 and is leaving Switzerland so this option is not relevant.
This thread is about leaving to the UK, so my reference was to a UK ltd company that costs very little to set up.

Why you mention costs about a Swiss company beats me, totally irrelevant & only being self employed in CH allows the pension to be cashed in as long as it's during the first 12 months of trading.

FWIW liberty charges 475 CHF transfer out costs, so it's possibly not beneficial to transfer such a low value pension, as the saving could well exceed 475 CHF, for example in Geneva the withholding tax would be just be 150 CHF higher.
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  #22  
Old 14.08.2017, 12:19
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Re: Pillar 2 vesting account recommendations?

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This thread is about leaving to the UK, so my reference was to a UK ltd company that costs very little to set up.
Was it now? Be clear then.
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  #23  
Old 14.08.2017, 12:25
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Re: Pillar 2 vesting account recommendations?

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Was it now? Be clear then.
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I have a small second pillar fund (just under 50k) and intend to move back to the UK soon.
It's always been clear what the thread was about.

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And there are mysterious ways to bypass the normal rules... but no-one will tell you
I was directly replying to you so yes totally clear what I was talking about
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  #24  
Old 14.08.2017, 13:06
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Re: Pillar 2 vesting account recommendations?

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So a contractor with a Ltd company taking the majority of their pay by dividends would qualify.
totally off topic I know..

why would a contractor with ltd take most of his pay in dividend?
I ask as I do contract sometimes and sometimes I have a very good year. Salary up to approx. 200K stays below the corporate tax in VD. Everything above 200K would generate more income tax than corporate tax. But after paying corporate tax the only option left is taxed dividends or leaving it in (but I don't see any benefit for that). All ceteris paribus deductions of course for mortgage, etc, etc

Any suggestions?
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Old 14.08.2017, 13:08
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Re: Pillar 2 vesting account recommendations?

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I have a small second pillar fund (just under 50k) and intend to move back to the UK soon. I understand that one of the best vested accounts is with Pensfree in Schwyz; however, they only deal with funds of 100k or more.

Can anyone recommend a vesting account for a fund of less than 50k which has a very low withholding tax? (I reside in Vaud, so hope that I can open one in another canton with a lower rate).

Many thanks.
On the vesting account I would refer to all the threads on how to take the pillar 2 with you when leaving Switzerland and the parts that can be cashed and not etc. Don't forget the AHV/AVS.
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  #26  
Old 14.08.2017, 13:27
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Re: Pillar 2 vesting account recommendations?

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totally off topic I know..

why would a contractor with ltd take most of his pay in dividend?
I ask as I do contract sometimes and sometimes I have a very good year. Salary up to approx. 200K stays below the corporate tax in VD. Everything above 200K would generate more income tax than corporate tax. But after paying corporate tax the only option left is taxed dividends or leaving it in (but I don't see any benefit for that). All ceteris paribus deductions of course for mortgage, etc, etc

Any suggestions?
For a UK company there is a saving in employee & employer NI contributions, this thread is about taking a Swiss pension to the UK & ways to take that pension as cash. Swiss law does not allow this as it's considered abusive.
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