Best Freizügigkeitskonto for emigration

Taxes
1

I’m in the market for a Freizügigkeitskonto to temporarily park 6 figures from my pillar 2 account. I plan to move out of country and take it all in cash in a few months. What are the best options for that?

I’ve heard institutions in SZ are highly recommended because of generally low withdrawal taxes there. Any particular recommendations or anti recommendations? How high exactly are those taxes in comparison to Zurich, if anyone knows?

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Why do you want to take it all in cash? Why not invest it tax-free?

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I will in fact get to invest it tax free as a non domiciled UK resident. But first things first: I need to get it out of the swiss system with minimal losses (taxes & fees)

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The thing you will want to look at are the fees charged for early withdrawal due to emigration. For example, the Sparkasse Schwyz charges CHF 25 if you withdraw within 1 year of opening the vested benefits account, and nothing after that. The Schwyzer Kantonalbank charges CHF 800, and Liberty charges between CHF 475 and 950. You can find all fees on the pruduct info pages in this comparison:
https://www.moneyland.ch/en/vested-benefits-accounts-comparison

In any case, Schwyz has the lowest capital withdrawal taxes. If you withdraw after deregistering in Switzerland, capital withdrawal taxes are charged in the vested benefits foundation’s canton of domicile. This is particularly important if you will not be eligible to claim a capital withdrawal tax refund (I’m not sure whether non domiciled UK residents benefit from the double-taxation treaty).

If you withdraw while still resident in Switzerland, then you pay tax where you live. If you are willing and able to move to another part of Switzerland for a while before you withdraw, then Appenzell Innerrhoden is where you will want to be.

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Yeah, I’ve seen those ridiculous withdrawal charges at all those big heavily-marketed names that pop up in search, that’s why I was asking

Thanks for mentioning Sparkasse Schwyz! Looks like a great option, I’ll give them a call

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Checked out Sparkasse. Their Freizügigkeitskonto product for private persons is done through Unabhängige Freizügigkeitsstiftung Schwyz who want 400 CHF for withdrawal. 25 CHF fee is actually for something else, doesn’t apply in my case

I suppose it’s still cheapest compared to SzKB (800 CHF) and Liberty (475 CHF), but still a tad expensive

Anyone knows a better option?

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My research so far:

  • Sparkasse Schwyz / Unabhängige Freizügigkeitsstiftung Schwyz - 400 Fr for withdrawal, free account management
    • Update: they are only interested in 250k+ accounts AND if you will invest into their funds which will cost extra $$$$ fees (0.5% to buy/sell + 0.4%/y). Small time customers and people who want simple cash account not welcome
  • Liberty-Vorsorge - 475 Fr for withdrawal, free account management
  • Schwyzer Kantonalbank - 800 Fr for withdrawal (but 200 Fr for partial, suppose some combinations possible to save here), free account management
  • PensFree Freizügigkeitsstiftung - prices on request only. if you need to ask you cant afford it heh, pass
    • Update: 500-1000 CHF to withdraw, partnered with Stiftung Independent apparently
  • Elite Freizügigkeitsstiftung - likewise, prices on request only. Sounds like $$$$ from this report
  • Freizügigkeitsstiftung Independent - 500-1000 Fr for withdrawal
  • tellco pkPRO - poorly worded conditions. From a quick read it looks like 350-20000 Fr per withdrawal. Account management 0.25% up to 600 Fr per year.
  • Tellco Vested Benefits Foundation - Schroedinger foundation - maybe free, maybe 600 Fr for “Withholding tax certification (following moving away from Switzerland”. Either way unclear conditions that don’t inspire my confidence
  • PFS Freizügigkeitsstiftung - 2000-3000 Fr per withdrawal if parked under a year + maybe 36 Fr/year management
  • Profond Freizügigkeitsstiftung - no clear answer in the conditions, could vary from free to I suppose 150 Fr/h nach Aufwand
  • ValuePension - 500 Fr + 400 Fr (if parked under a year) + surprise fees nach Aufwand

Seems like Sparkasse is so far still the cheapest no-surprises option. But that’s still gonna be 400 CHF.

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They are not based in SZ. Their Wir Bank is Basel based.

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Well… 0.4% in the worst case! Lucky you, you can cash it out.

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Lucky indeed. I will also cash out pillar 1. Or at least about the half of it that they will let me - the rest they want to keep to feed old swiss geezers and i get no right to complain, its a take it or leave it kind of deal

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To my knowledge UK resident are not eligible for a refund of withholding tax (though I assume that means it’s taxed favourably, if at all, in the UK).

pkPRO is a pension fund, not a Freizügigkeitsstiftung.

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Ah, interesting. I oversaw this moment. So they have a separate Tellco Vested Benefits Foundation for FZG accounts. Are you with them, have any experience?

Conditions mention account maintance and closure is free. But possibly 600 CHF for “Withholding tax certification (following moving away from Switzerland)”…

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No personal experience, sorry.

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Update on Sparkasse: according to their fantastic account opening form, they are ONLY interested in customers with 250k+ cash to bring (ok) AND who want to invest that cash into their funds (not ok!). Unserious customers who just want to temporarily park a little bit of cash hoping to get it out of swiss paying just 400 Fr and SZ tax will be shown the door - no options for them on the form

Guess I can strike them off my list and the choice is obvious where I’ll take my money.