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Old 16.06.2019, 13:18
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Taking out 3rd Pillar to buy property

I'm considering cashing out my 3rd Pillar to buy property for my retirement in 5 years time.



Does the property have to be here in Switzerland or can it be in another country?


How long is the process to cash out the 3rd Pillar?


Do you pay tax if you cash it out? I'm in the canton of Bern.
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Old 16.06.2019, 13:23
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Re: Taking out 3rd Pillar to buy property

It takes a few weeks, only for CH, and yes you pay tax of around 5%.

Tom
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Old 16.06.2019, 20:16
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Re: Taking out 3rd Pillar to buy property

You may want to speed things up, IIRC cashing out after you've reached age 60 comes with additional restrictions.
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Old 17.06.2019, 09:04
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Re: Taking out 3rd Pillar to buy property

I'm seriously wondering why I bothered with the 3rd Pillar... no longer sure it was such a good savings options.
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Old 17.06.2019, 09:07
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Re: Taking out 3rd Pillar to buy property

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You may want to speed things up, IIRC cashing out after you've reached age 60 comes with additional restrictions.
Actually, there are no restrictions if you cash-out your 3p at 60.

Tom
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Old 17.06.2019, 09:47
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Re: Taking out 3rd Pillar to buy property

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You may want to speed things up, IIRC cashing out after you've reached age 60 comes with additional restrictions.
As Tom says at 60 you can cash in unconditional, but AFAIK after 60 you must cash in the account in full. Maybe still possible to cash in only partially if you use it to finance a self lived-in house. Tax will be the same, regardless for what you use the money. Tax is independent of any other income. But if you cash in more than one pillar 3 account in a year the tax will be calculated on the combined amount.
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Old 17.06.2019, 11:24
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Re: Taking out 3rd Pillar to buy property

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after 60 you must cash in the account in full.
Yes.

Before 60 you can cash out part to buy a house.

Done both.

Tom
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Old 17.06.2019, 11:53
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Re: Taking out 3rd Pillar to buy property

Ahhh! Just spoken to the bank and within 5 years of retirement, which I am, I cash in the 3A and use it for anything I want i.e., property outside of Switzerland, and yes will be taxed on it if it is before I'm 64.



So all in all not bad but will leave it sitting there for now.
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Old 17.06.2019, 12:15
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Re: Taking out 3rd Pillar to buy property

I'm starting to wonder about 3rd pillar too.

You save the ~15% taxes on at the end of the year and pay 5% when you take it out after your 60th IF YOU STILL LIVE IN CH BY THAT TIME.

If you've moved to Spain or so, then it'll probably count as income and you pay the full 50 or so % income tax. Would have been better to have paid the 15% while still in CH and have it be part of normal assets when moving to ES.
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