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Old 15.07.2021, 01:19
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Pension: Transfer Vested Benefit to SZ for withdrawal

Hi EF

I am aware that it is possible to transfer pension assets (to SZ for example), before making an early withdrawal - such as for the purpose of becoming self-employed and carrying out this activity within the first 12-months of registering as an individual for self-employment, or for other reasons, such as leaving CH. The transfer of the assets to another canton being of a tax efficient benefit.

So far, I have not found a comprehensive post, nor recommendations of service providers that might be of assistance for this process and I wondered if anyone would care to share their knowledge or experience in this matter.

Thank you in advance - good health to all.
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Old 15.07.2021, 05:26
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Re: Pension: Transfer Vested Benefit to SZ for withdrawal

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... such as for the purpose of becoming self-employed and carrying out this activity within the first 12-months of registering as an individual for self-employment....
This implies you would remain resident, in which case transfer to a different canton does not confer any tax advantage as you would be taxed according to your place of residence. Only if you leave Switzerland does the location of the vested benefits fund determine the tax rate, AFAIK.
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Old 15.07.2021, 07:18
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Re: Pension: Transfer Vested Benefit to SZ for withdrawal

Withdrawal when leaving CH was discussed just the other day here
https://www.englishforum.ch/finance-...ributions.html

Here is an overview of tax rates paid if withdrawal whilst in CH
https://finpension.ch/en/capital-wit...-tax-compared/

Multiple Service providers exist in SZ, most will charge you an admin fee for withdrawing
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Old 15.07.2021, 11:29
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Re: Pension: Transfer Vested Benefit to SZ for withdrawal

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This implies you would remain resident, in which case transfer to a different canton does not confer any tax advantage as you would be taxed according to your place of residence. Only if you leave Switzerland does the location of the vested benefits fund determine the tax rate, AFAIK.
Thank you for this
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Old 15.07.2021, 11:30
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Re: Pension: Transfer Vested Benefit to SZ for withdrawal

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Withdrawal when leaving CH was discussed just the other day here
https://www.englishforum.ch/finance-...ributions.html

Here is an overview of tax rates paid if withdrawal whilst in CH
https://finpension.ch/en/capital-wit...-tax-compared/

Multiple Service providers exist in SZ, most will charge you an admin fee for withdrawing
Many thanks for posting these links
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Old 15.07.2021, 12:01
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Re: Pension: Transfer Vested Benefit to SZ for withdrawal

Its worth mentioning that Schwyz is not always the cheapest. For bigger pots (250K plus) AI is the cheapest.

See https://finpension.ch/en/capital-wit...-tax-compared/, the link already provided above.

Given you can have 5 Pillar 3as and stagger withdrawal over 5 years, and the 6.8k yearly limit, this is probably only relevant for 2nd pillar. But I imagine having a 2nd pillar over 250k will be very common.
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Old 15.07.2021, 15:42
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Re: Pension: Transfer Vested Benefit to SZ for withdrawal

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Its worth mentioning that Schwyz is not always the cheapest. For bigger pots (250K plus) AI is the cheapest.

See https://finpension.ch/en/capital-wit...-tax-compared/, the link already provided above.

Given you can have 5 Pillar 3as and stagger withdrawal over 5 years, and the 6.8k yearly limit, this is probably only relevant for 2nd pillar. But I imagine having a 2nd pillar over 250k will be very common.
That's only for residents, so would apply, like, if you fancy buying a house in the middle of nowhere in AI with your pension money and moving there.

Withholding taxes for non-resident withdrawal case use completely different set of tax progressions and SZ is among the cheapest for that


Ex for 300k -

Quote:
Berechnungsgrundlage: CHF 300'000.00
Quellensteuer des Kantons Appenzeller Innerrhoden: CHF 23'400.00
Quellensteuer des Kantons Schwyz: CHF 12'900.00
(https://www.liberty.ch/freizuegigkei...rigen-ausland/)


Even more important for non-resident withdrawal is how your new country is going to tax the payout. You fancy paying 30-50% income taxes instead of swiss' 4-5% withholding tax? The swiss would actually refund you the latter once you document that you're paying the former so the gyrations of moving money to SZ and paying some extra $$$ for that may be for nothing in the end.
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Old 16.07.2021, 12:21
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Re: Pension: Transfer Vested Benefit to SZ for withdrawal

Thank you all for your contribution. Unable to work out how to thank each user for their comment
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