You have definitely decided to leave Switzerland to live abroad. But then, how to withdraw its capital LPP (2nd Pilar) before the retirement age?

The answer depends on the country where you satisfy yourself.

Yes, it is possible to remove its LPP at the definitive exit of Switzerland. But the rules vary according to their future country of residence, namely, if it is inside or outside the EU/aele. Find the complete list of countries at the end of our article.

Here we approach those of two cases, which allows you to understand the rules that apply to avoid disappointment or unpleasant surprises.

Final exit to a country outside the EU/aele

If Swiss salts to settle in a country Apart from the European Union (EU) or the European Free Trade Association (AELE)You have the possibility of Withdraw all your capital LPPincluding mandatory participation and participation in the Bonded.

Note, however, you must meet the following conditions:

  • Having left his Switzerland.
  • You will no longer be subject to the Swiss forecasting system.
  • Provide proof of your new official residence abroad.

The documents required to withdraw your LPP

To initiate retirement procedures for your second Pilar, your forecast institution will ask you to complete and provide certain documents:

  • Exit certificate from your residence municipality in Switzerland.
  • Residence test in the country of destination.
  • Specific forms of your pension fund.

⚠️ Note: This withdrawal is subject to a source tax in Switzerland! Like any tax, the rate varies according to the canton, where its pension fund is located. We invite you to inform yourself with your LPP fund on the rates that will be applied before making your application.

Final output to an EU/Aele country: only partial withdrawal

If you settle for an EU or aele country, The rules are stricter. Due to bilateral agreements between Switzerland and these countries, you remain automatically insured for old age, disability and survivors in your new country of residence.

What is blocked in Switzerland

The mandatory part of the LPP: You must remain in a free passage account in Switzerland until you have reached the retirement age (65).

What you can withdraw

Part of Survenant: This part, often more flexible, can be removed immediately depending on the conditions of your pension fund.

A concrete example

You are going to live in France. You will not be able to Do not touch the mandatory participation of your second Pilar before your retirementBut you can ask Payment of the Surnoigator part From your departure.

What is the innovable part of the second Pilar?

Let's make an apart from this issue that will necessarily be interested if it leaves Switzerland for an EU/aele country.

The ON -Leledled part refers to the part of its professional forecast capital (LPP) that exceeds the minimum services defined by the Swiss Law. This part is crucial, on the one hand, because it allows you to improve your coverage in case of disability or death, but also as in the present case, to be able to withdraw part of your LPP during an exit abroad.

In a nutshell, in Switzerland the second pillar is divided into two parts:

1. The mandatory part

It represents the minimum coverage that the Swiss Law imposes on all employees. It is a security network to guarantee retirement, disability and death services.

This mandatory part covers three annuities: Old age, disability and death.

2.

Participation in Bond is an additional type of protection. It corresponds to everything that exceeds the basic coverage provided by law. Consequently, it depends directly on the forecast contract signed between its various employers and their pension fund, during all its subscription years.

Participation in the material of the law occurs When your annual salary is greater than CHF 88,200, excessive amounts can be covered by additional contributions. But also thanks to certain companies that voluntarily offer better services to their employees, such as higher annuities or reinforced contributions.

Specifically, how to remove your LPP?

First, cOnta your pension fund. Inform them from your departure and request the necessary forms.

After, Gather the required documents. Prepare all the requested tests and documents in relation to your final exit and residence abroad.

If necessary, in the case of a game in an EU/aele country, Request the opening of a free ticket account. As we saw earlier, it must be done in Switzerland to maintain mandatory participation there until the age of their retirement.

Don't forget declare the withdrawal to the Swiss and foreign tax authorities ! The retirement is subject to taxes in Switzerland and could also be in your country of destination. Do not neglect this point to avoid unpleasant surprises later.

List of EU countries

  1. Germany
  2. Austria
  3. Belgium
  4. Bulgaria
  5. Cyprus
  6. Croatia
  7. Denmark
  8. Spain
  9. Estonia
  10. Finland
  11. France
  12. Greece
  13. Hungary
  14. Ireland
  15. Italy
  16. Latvia
  17. Lithuania
  18. Luxembourg
  19. Malta
  20. Netherlands
  21. Poland
  22. Portugal
  23. Czech Republic
  24. Romania
  25. Slovakia
  26. Slovenia
  27. In view of

Aele countries list

  1. Iceland
  2. Liechtenstein
  3. Norway
  4. Swiss