Now that the Third Pillar (3a) becomes more attractive with solutions like VIAC, I wonder how to withdraw the money early.
Because I don’t know if I want to buy a home, a sure way to withdraw the funds would be to just register a business for this purpose and declare self-employement.
Has anyone experiences with this approach or can tell me if this is a viable plan?
Self-employed: you need to be registered as such at the social security offices. They want a business plan, contracts, lists of your clients, proof of payments etc.
Emigration: Methinks (not 100% sure!) you would have to leave EU/EFTA jurisdiction. So: Canada, Australia, Venezuela, Russia, Syria (you get my drift). Proof of presence in the new country is needed.
The “easiest” and probably most profitable way I can see to get the money out would be to leave the money on a 3a bank account and to close the account every 5 years. The money can be taken out for paying off your mortgage. This should result in nice tax savings.
Of course, you need to live in your own home first…
Yes you’re wrong, you can cash out 100% of 3a and most of pillar 2 no matter where you going. Destination country matters for whether you can withdraw mandatory (BVG) portion of pillar 2. And your passport (not destination) matters as to whether you can forfeit your future pillar 1 (AHV) pension and get some cash right now instead, albeit it ain’t much unless you’re 50+, compensation is limited to NPV of future pension with 3% discounting.
I left country and moved to Singapore for an extended period of time. Singapore does not tax capital payouts and has a double tax treaty with Switzerland. If you have it paid out, you’ll be taxed at first but you’ll get the tax paid back if declared correctly.
Thank you for this document. I always thought that AHV contributions were basically robbed from people leaving the country. This seems not to be (completely) the case.
Nachstehende Tabellen und Erläuterungen dienen der Ermittlung der in den Sozialversicherungsabkommen vorgesehenen Rentenabfindungen sowie zur Vergleichsrechnung bei Beitragsrückvergütungen für Staatenlose und Bürger von Staaten, mit denen die Schweiz kein solches Abkommen besitzt. Grundlage zur Berechnung solcher Abfindungen bilden die Barwerte und Grundzahlen in Kapitel 4 dieser Dokumentation. Die gesuchten Abfindungen lassen sich als Linearkombinationen der Rentenhöhen bestimmen, die bei ordentlicher Rentenauszahlung ausbezahlt würden. Als Koeffizienten werden die entsprechenden Barwerte herangezogen. Damit werden Rentenveränderungen als Folge von Zivilstandsänderungen oder Wechsel von der IV zur AHV mitberücksichtigt.
They are robbed out of people! Only first 84600 Fr of your yearly salary goes towards building out your pension benefit which determines how much you get paid back. The rest is just an f’ing tax to sponsor the current retirees with no benefit for you
Yearly savings from not having to pay taxes on dividends in 3a are about breakeven with VIAC fees, depending on your income level, so for these savings alone it’s not worth the trouble. But it’s better than other providers where you would constantly lose some money to even higher fees and misallocation. However you also get to save taxes when you put the money in the first time, this makes it worth your while even if it’s invested in a frigging 0% savings account instead of stocks, at least in the short term.
if you’re relocating to a good country with CH treaty and that doesn’t tax pension payout this whole exercise of switching cantons is pointless and only potentially will cost you money, yes there’ll be some tax but if you withdraw after relocation you get it all back and have to worry about your new country’s tax man instead