Pillar 2 and 3a when leaving Switzerland: withdrawal options
When leaving Switzerland, your pillar 2 mandatory portion can only be cashed out if you move outside the EU/EFTA - inside the EU/EFTA it must go to a vested-benefits (Freizügigkeit) foundation until retirement age. The super-mandatory portion and pillar 3a can always be cashed out on permanent departure. Pay-outs trigger a one-off withholding tax in the foundation's canton (typically 4-10% as of 2025); splitting balances across two foundations in low-tax cantons (Schwyz, Nidwalden) often saves several thousand francs.
Overview
Pension decisions on departure are irreversible once executed and the rules differ sharply by destination country. Sequencing matters: open the right vested-benefits accounts before deregistering, and document residence and social-security status before requesting any pay-out.
Handling pillar 2 and 3a on departure
- 1
Get a current pillar 2 statement
Ask your pension fund for an up-to-date Freizügigkeitsleistung (vested benefits) statement showing the mandatory (BVG) and super-mandatory (überobligatorisch) split. The split drives what you can cash out and what must be preserved.
- 2
Check your destination's rules
EU/EFTA + covered by that country's compulsory pension insurance: mandatory portion stays in a Swiss vested-benefits foundation until earliest age 60. Outside EU/EFTA, or self-employed/not insured in an EU country: full cash withdrawal is possible on permanent departure.
- 3
Open vested-benefits accounts in low-tax cantons
Before leaving, open one or two Freizügigkeit accounts at foundations domiciled in Schwyz or Nidwalden (low withholding-tax cantons). Splitting the balance across two foundations and withdrawing in different tax years compresses the progressive rate.
- 4
Decide cash vs preserve
Cashing out ends Swiss pension coverage permanently and the money is fully taxable in your new country of residence in most cases. Preserving in a vested-benefits foundation defers tax and keeps options open if you return to Switzerland.
- 5
Cash out pillar 3a
On permanent departure, pillar 3a is paid out by the bank or insurer holding the account, taxed at source in the canton of the institution. Same split logic applies: two 3a accounts at low-tax-canton institutions, withdrawn in two different years, beats one lump sum.
- 6
Apply for withholding-tax refund where a treaty applies
Several treaties (e.g. with the UK, Germany, the Netherlands) reclaim part or all of the Swiss withholding tax if the pension is then taxed in the new country of residence. Time-limited - usually 3 years from pay-out.
Frequently asked questions
Can I cash out my Swiss pension when I move to the EU?+
The super-mandatory portion and pillar 3a, yes. The mandatory BVG portion must be transferred to a Swiss vested-benefits foundation until retirement age, provided you are covered by compulsory pension insurance in the new EU/EFTA country (as of 2025).
How much tax do I pay on a pillar 2 lump-sum withdrawal on departure?+
A one-off withholding tax in the canton where the foundation is domiciled - typically 4-10% all-in on a CHF 200,000-500,000 lump sum, with low-tax cantons like Schwyz and Nidwalden at the bottom of that range (as of 2025).
Should I split my pension between two vested-benefits foundations?+
Often yes. Withholding tax is progressive on the lump sum, so two CHF 250,000 pay-outs in two different tax years generally beat one CHF 500,000 pay-out - particularly when each foundation sits in a low-tax canton.
How long do I have to move my pillar 2 after leaving my Swiss employer?+
If you do not provide instructions, the fund transfers your benefits to the Substitute Occupational Benefit Institution (Auffangeinrichtung) after about 6 months. Open your vested-benefits accounts before you leave to keep control.
Can I reclaim Swiss withholding tax in my new country?+
Possibly, under the double-tax treaty between Switzerland and your new residence. The new country usually has primary taxing rights, so the Swiss withholding is partly or fully refundable - apply within the treaty deadline, typically 3 years.