Leaving Switzerland: withdrawing your 2nd pillar by destination country.
Withdrawing LPP on departure from Switzerland depends on where you settle. EU/EFTA and outside-EU are two very different regimes. The details, case by case.
You are leaving Switzerland to settle elsewhere. The 2nd pillar withdrawal rule depends on a single factor: is your destination country in the EU/EFTA or elsewhere. The two regimes are radically different — and confusion costs poorly informed expatriates tens of thousands of francs every year.
The three cases
| Destination | Mandatory part | Extra-mandatory part |
|---|---|---|
| EU / EFTA | Locked in vested benefits CH | Full payment possible |
| Outside EU / EFTA | Full payment possible | Full payment possible |
| United Kingdom (since 2021) | Full payment possible | Full payment possible |
EU / EFTA countries
List of states where the mandatory part stays locked in Switzerland:
| Bloc | States |
|---|---|
| EU-27 | Germany, Austria, Belgium, Bulgaria, Cyprus, Croatia, Denmark, Spain, Estonia, Finland, France, Greece, Hungary, Ireland, Italy, Latvia, Lithuania, Luxembourg, Malta, Netherlands, Poland, Portugal, Czech Republic, Romania, Slovakia, Slovenia, Sweden. |
| EFTA (excl. CH) | Norway, Iceland, Liechtenstein. |
For these countries, only the extra-mandatory part of your LPP can be paid out in cash at the time of departure. The mandatory part is automatically transferred to a vested benefits account in Switzerland that you must designate (or that will be opened by default at the Central 2nd-Pillar Office).
Countries outside EU / EFTA — common examples
For all other states, full withdrawal (mandatory + extra-mandatory) is possible. Frequent cases:
- United States, Canada, Mexico — fairly common departure for pharma or tech expats.
- United Kingdom — since 2021 (Brexit).
- Australia, New Zealand — another expat destination.
- Asia (China, Japan, Singapore, Hong Kong, India…).
- United Arab Emirates, Qatar, Saudi Arabia — expats with often high financial profiles.
- Brazil, Argentina, Chile.
- All African countries and other non-European destinations.
The departure withdrawal procedure
The procedure varies depending on whether you are still employed at the moment of departure or your assets are already in vested benefits. Allow 6 to 12 weeks in total.
Notify departure to the municipality
1-2 weeks before departureDeparture declaration with the Swiss municipality (departure notification form). This proves the end of residence in Switzerland, essential for what follows.Request the foreign address certificate
Varies by countryOnce settled in the destination country, obtain a residence certificate (local equivalent: fiscal residence certificate, Anmeldebestätigung in DE, certificate of address in the UK…). The other key document.Build the file with the foundation
~1 weekWithdrawal request form, CH departure certificate, foreign residence certificate, passport copy, spouse consent if married, IBAN of the destination account (CH or foreign).Review and tax calculation
4-6 weeksThe foundation verifies eligibility (EU/EFTA or not), calculates the source tax applicable in its canton, prepares the statement. In case of EU/EFTA withdrawal: only the extra-mandatory is released. You receive a written decision with the net amount.Payment
~1 week after approvalPayment to the indicated IBAN. For foreign EUR/USD accounts, exchange fees apply (typical 0.5 to 1.5% margin on the interbank rate).Tax return in the destination country
Year of withdrawalThe capital received is generally taxable in the country of residence (unless treaty exemption). To declare in the annual tax return. Tax credit option per bilateral treaty — see our dedicated tax article and adapt by country.
Source tax in Switzerland
At the time of payment, the foundation withholds a source tax in its canton. The rate depends on the foundation's canton of domicile, not the taxpayer's.
| Foundation canton | Indicative rate | Approximate tax |
|---|---|---|
| Schwyz, Zug, Nidwalden | ~4 to 5% | ~CHF 8,000 to 10,000 |
| Vaud, Berne, Ticino | ~5 to 8% | ~CHF 10,000 to 16,000 |
| Geneva, Basel-City, Zurich | ~7 to 10%+ | ~CHF 14,000 to 20,000+ |
A concrete worked example
Works in Lausanne for 11 years, moves back to Portugal. LPP assets CHF 195,000 (CHF 132,000 mandatory + CHF 63,000 extra-mandatory). Fund domiciled in Vaud.
- Total assets
- CHF 195,000
- — mandatory part
- CHF 132,000
- — extra-mandatory part
- CHF 63,000
- Destination
- Portugal (EU)
- Cash payment possible
- CHF 63,000 extra-mandatory only
- Locked in vested benefits CH
- CHF 132,000 until 65 (or legal withdrawal case)
- CH source tax (~6% VD)
- ~CHF 3,800 on the CHF 63,000 paid
The foreign-account trap
Many expats want to receive payment directly to their account in the destination country. Possible, but:
- The foundation applies exchange fees (0.5 to 1.5% margin).
- Some foreign banks impose receiving fees on large amounts.
- The international transfer trail can trigger questions from the local tax authority (source of funds documentation).
Alternative: receive the payment on a CHF account in Switzerland, then transfer yourself at the rate you choose (with a specialized currency broker, often lower spreads).
If you stay for a long time with a CH vested benefits account
Even locked until retirement (EU/EFTA case), the mandatory part continues earning interest. You can invest in securities if the foundation allows. Consider cantonal optimization before retirement: a transfer to a Schwyz/Zug/Nidwalden foundation 12+ months before can reduce the source tax by several thousand francs at the final withdrawal.
- 01EU/EFTA countries: only the extra-mandatory paid in cash. Mandatory locked in vested benefits CH.
- 02Countries outside EU/EFTA (USA, UK, Asia, etc.): full payment possible.
- 03Key documents: CH departure declaration + foreign residence certificate.
- 04Cantonal optimization via prior transfer possible — saving of several thousand francs on the source tax.
For cross-border workers moving back home specifically, see our dedicated guide. For tax details abroad, our taxation article. To understand the technical mandatory/extra-mandatory split, the dedicated article.