Moving abroad and organising assets across borders
InternationalAnyone leaving Switzerland cannot simply take pension provision, insurance and assets along. This page is for people who are planning to move away and shows which questions need to be settled before deregistering.
What happens to pension provision and insurance
Pillar 3a
On leaving Switzerland permanently, the pillar 3a assets can be withdrawn, regardless of the destination country. A withholding tax is levied on the payout; its amount depends on the canton in which the pension institution is based. Depending on the double taxation agreement, it can be reclaimed in full or in part.
Pension fund and vested benefits
When moving to a country outside the EU and EFTA, the entire balance can be withdrawn in cash. When moving to an EU or EFTA state, the mandatory part remains tied in Switzerland if you are subject to compulsory pension insurance there; the extra-mandatory part can be withdrawn. Exception: no cash payment is possible when moving to Liechtenstein. A withholding tax is levied on these withdrawals as well. Whatever is not withdrawn remains in a vested benefits account or a vested benefits policy.
AHV
Deregistration generally ends the obligation to pay contributions, and contribution gaps can arise. Voluntary insurance is open to Swiss, EU and EFTA nationals only if they live outside the EU and EFTA; it requires a prior period of insurance and must be applied for within one year. Pension entitlements already acquired remain in place. Whether the pension is paid abroad depends on nationality and on the social security agreement with the country of residence.
Health insurance
The obligation to be insured in Switzerland ends, as a rule, when you leave. Exceptions apply in certain cases within the EU and EFTA, for example for people who draw a Swiss pension. Supplementary insurance often cannot simply be continued or taken out again later. We clarify this before anything is cancelled.
Taxes
Leaving ends unlimited tax liability in Switzerland. A limited tax liability remains for real estate and certain income. How pension withdrawals, pensions and assets are taxed in the destination country depends on the law there and on the double taxation agreement. That calls for a tax adviser who knows both countries.
Private Placement Life Insurance for mobile wealth
What PPLI is
PPLI is a unit-linked life insurance policy for larger assets. The assets belong to the policy: they are held in a custody account of the insurer with a custodian bank and are managed according to an agreed investment strategy. The policyholder is the client; the contracting party is a life insurer, often based in Liechtenstein, Luxembourg or Ireland.
What it is used for
A policy can bundle assets, clearly determine the beneficiaries on death and remain in place when the place of residence changes. Whether and how it is recognised and taxed in the new country of residence differs from country to country and must be clarified before the policy is taken out.
What to bear in mind
PPLI is not a solution for every situation. Minimum premiums, ongoing costs, the requirements of the destination country and the rules on managing the assets all need to be on the table. A policy replaces neither tax planning nor estate arrangements.
Our role
We compare insurers and structures, coordinate with the custodian bank, the asset manager and your tax and legal advisers, and accompany the process through to conclusion. We only arrange policies from insurers that are authorised in the client's country of residence. The tax assessment lies with the specialists in the previous and the new country of residence.
To settle before deregistering
- Pension assets: what can be withdrawn, what stays in Switzerland?
- Health insurance in the destination country and the transition to it
- Possible AHV gaps and the voluntary insurance
- Existing policies and supplementary insurance
- Tax advice in both countries
- Beneficiary designations and estate in the new country of residence
This page provides general information. The tax and legal treatment depends on the destination country and on your personal situation. We do not give tax advice and make no statements about tax or return advantages.
Let's discuss your situation
Every advisory engagement begins with a conversation, by phone, email, or in person in Zurich. We take the time to understand your situation before making recommendations. The initial consultation is free of charge and without obligation.