We need to move my 2nd Pillar money to a vested benefits account, with a view to exiting Switzerland and withdrawing the money fully around June-December this year (i.e. vested benefits account only for a few months). We do not need investment or high interest - just low to zero withdrawal fees and convenience to withdraw.
Looking for suitable Vested Benefits Accounts in Canton Schwyz - so far only seen Sparkasse Schwyz. Please could I get your collective wisdom on other suitable providers.
Thank you very much!
I did use Schwyzer Kantonalbank in Pfäffikon. Short train ride from Zurich.
Used it for 2nd vested account and 3rd. I think it was about CHF 500 for withdrawal and gets cheaper after a year, check out their webpage, I think they publish the costs there.
Bear in mind that your money is probably not sure in any financial institution as they can go broke, but the Kantonalbank has kind of a state warranty.
They do that all the time, I had no problem and was explained exactly how to do every step. Could do some things even while still in Switzerland.
@Singaporean In which country will you be tax resident at the time of withdrawal? Have you checked the existence of a DTA and if any taxes are due in Switzerland?
You are lucky, Singapore does not tax out-of-country pensions or lump sums. You will only pay the 4-5% of Kanton Schwyz.
A little remark: If somebody plans to move to a country which does tax those lump sums you may be better off with a temporary residence in a country that does not tax it. There are tax hells that may take away half of your retirement money, heard some horror stories of seized houses in Spain…
If a country does not tax retirement lump sums a double taxation treaty with Switzerland is not needed. If it does it is needed, so you can get back at least the smaller amount, which is usually the Swiss one. Many treaties state that lump sums are only taxed at the source.
If you are a U.S. citizen or a citizen of Eritrea you always pay, those are the only two countries that tax their citizen no matter where.
Spain is really bad and there are some more tax hell countries.
I heard from poor Swiss people (now they are poor) that bought a house in Spain with their lump sum and then it got taken away by the taxman and it was sold for peanuts, barely enough to pay the mortgage. No house in the sun, no money, back to Switzerland.
If you plan to move to such a country, as I said, it may be a very good idea to get a temporary residence in a country where pension lump sums are not taxed.
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