Moving Pillar 2 pension to Schwyz before leaving for UK

Hi folks, I was searching for this in the forum that is about to be closed and couldn't find the details I was looking for and thought it better to post here. I don't know if anyone here is in the process of or have already shifted their pension to Schwyz to save on withdrawal taxes? If so, has anyone found the best bank or institution in Schwyz that allow for a short term 'contract', don't charge fees and only a small withdrawal fee? There are financial advisors who offer this complete service, but they charge fees and I thought it would be possible to do this myself and save a few thousand francs. Any info anyone could share would be most gratefully received. Merci!

Hi Lamalaa, I don't know the answer but I just wanted to say hello and welcome.

Thank you 3 wishes. Great to be here. May I have 3 wishes ?

I believe that upon pension withdrawal you are taxed according to your residence Canton, irrespective on where the institution holding your second pillar is located. Under the hypothesis that you would move your residence to a low tax canton, you may wish to consider that in those cantons property rental or buy has a much higher price than in high tax cantons - unless your lump sum at the 2nd pillar is very high, taking such residence change for a brief period of time only to save on taxes may not be worth. I know several families that moved to live in low tax cantons to save taxes, but it was worth only because they spent several years residing in those cantons and had a high enough income and wealth to make it reasonable. Also people working fully or almost fully remote may have an advantage in such cantons, if they find a suitable housing for a price that makes the savings vs the expenses worthy. But if you need to take the upheaval of moving, residing in a smaller house and covering large distances on daily basis or several times a week then your tax saving case becomes less appealing.

Suissa wrote:I believe that upon pension withdrawal you are taxed according to your residence Canton, irrespective on where the institution holding your second pillar is located. Under the hypothesis that you would move your residence to a low tax canton, you may wish to consider that in those cantons property rental or buy has a much higher price than in high tax cantons - unless your lump sum at the 2nd pillar is very high, taking such residence change for a brief period of time only to save on taxes may not be worth. I know several families that moved to live in low tax cantons to save taxes, but it was worth only because they spent several years residing in those cantons and had a high enough income and wealth to make it reasonable. Also people working fully or almost fully remote may have an advantage in such cantons, if they find a suitable housing for a price that makes the savings vs the expenses worthy. But if you need to take the upheaval of moving, residing in a smaller house and covering large distances on daily basis or several times a week then your tax saving case becomes less appealing.

Suissa, you are incorrect and have been misinformed. The withdrawal tax is based on the canton of the vested benefits institution, not your canton of residence.

Thanks Lamalaa, do you have a reference for that? I recently asked an advisor, and that is what I was told.

I'm not allowed to post the link, but this is what it says on the PensFree website.


Tax savings when moving abroad

"If you are definitively leaving Switzerland and want to have your pension assets paid out, the one-off tax payment is not based on your last place of residence. The applicable tax rate is that of the canton where the vested benefits institution is based."

Hi Lamalaa,

I had asked for a case of withdrawing lump sum but staying ion Switzerland. Apologies, since my reply overlooked that you stated that you were leaving for UK !