Leaving Switzerland in 2026: A Financial Guide

Leaving Switzerland

This article is not meant to be a guide on all the steps needed to take when leaving Switzerland. We will cover some of these steps, but we will mostly focus on the financial impacts of leaving Switzerland.

We are discussing here a definite leave of the country, not a temporary one. This matters because the financial aspects are quite different. And just because it is definite does not mean you cannot come back, but it means you are not yet planning to come back.

The first step in your journey is to deregister from your local municipality. You should do that about 60 days in advance. This is what will get everything started. This step will produce the proof of departure. You will need this proof to deregister from several important services.

What happens to your third pillar?

First, what will happen to your third pillar account when leaving Switzerland?

The situation is actually simple for the third pillar. You have two options.

1. You can withdraw it entirely (moving abroad definitely is a valid reason for early withdrawal).
2. You can keep it in Switzerland until you reach retirement age.

If you choose the first option, it is important that you then consider your retirement properly. Ideally, this money should serve your retirement abroad as well, not only fund your current lifestyle.

And if you choose to keep your money in Switzerland, you need to be aware of a few important details. First, not all third-pillar accounts will keep you if you move abroad. You will need to announce the move, and some will simply not cater to non-residents. So you may have to switch providers before leaving Switzerland.

Second, you have to make sure to choose a third pillar with a good domicile. The withdrawal taxes when abroad are based on the domicile of the third pillar foundation. And this can make a massive difference. Schwyz is a good example of a great domicile for withdrawing abroad. If you need an example, Finpension 3a is located in Schwyz.

Finally, it is important that you check the presence of a double taxation agreement between Switzerland and the country you are moving to. If they have a double taxation agreement, you might be able to either get back the withdrawal taxes you paid or avoid a second tax in the other country. What you can get back depends on which country has the taxing rights in the agreement.

If you are already retired, you do not have a third pillar since you already withdrew it and integrated it into your personal assets. In this case, nothing changes when leaving Switzerland.

What happens to your second pillar?

The second pillar is also impacted by moving abroad, and the situation is a bit more complex.

If you are still working, you will be part of a pension fund (second pillar). In this case, the first thing you will need to do is transfer this amount to a vested benefits account. Just like the third pillar, the domicile of the vested benefits foundation is important for withdrawal taxes. So you should choose a vested benefits account in a canton with low withdrawal taxes (like Schwyz).

Actually, you should even split it into two vested benefits. The reason is that you want to stagger your withdrawals to save on taxes. So, choose a great vested benefits account (like Finpension vested benefits, for instance) and split your pension into two accounts. Then, you will withdraw each account in a different calendar year.

For your vested benefits accounts, it will depend on where you are leaving to.

If you leave Switzerland for a country that is part of the European Union (EU) or European Free Trade Association (EFTA), then you will keep your vested benefits accounts. You can then withdraw it from abroad starting 5 years before official retirement (currently 65). If you like, you can withdraw the over-mandatory part of your second pillar. The mandatory part cannot be withdrawn at all.

If you are moving to a country outside the EU and EFTA, you can withdraw your entire second pillar.

If you are already retired, you cannot have a vested benefits account since it would have been withdrawn already and would be integrated into your net worth. But you can have a pension. And in this case, if leaving Switzerland, you will continue receiving your pension. You will need to notify your pension fund to continue paying you in the new country.

What happens to your first pillar?

The first pillar can only be withdrawn as a pension when leaving Switzerland.

If you are already receiving a pension from your first pillar (i.e., you are already retired), you can continue receiving your pension abroad. You will need to let the first pillar office know about your new address and bank account details.

If you are not yet retired, the rules will vary again based on where you are moving to.

If you are moving to a country in the EU/EFTA, you will become part of the social security system in the new country. The Swiss social security system becomes linked to the foreign one. At retirement age, you will receive your normal Swiss pension, and you will receive a local pension as well. You will not have to deal with Swiss authorities to get the Swiss pension. It is being coordinated between both countries for you.

In these countries, you cannot continue contributing voluntarily to the Swiss social security system. There is no way to cash out your contributions to the first pillar; you are forced to remain in the system.

If you are moving to a country outside the EU/EFTA, you stay entirely within the Swiss social security system. Swiss and EU/EFTA citizens can even keep voluntarily contributing to it if you want better retirement conditions. In this case, you will need to deal with the Swiss authorities when you retire to get the pension; there is no coordination.

In some cases, you can get your first pillar contributions back. But the conditions are very strict for this case and do not apply to Swiss citizens. It only applies to citizens of countries outside Switzerland, the EU, and EFTA. Depending on where they are leaving to, these citizens may be able to get back their first pillar contributions:

1. If these citizens are moving to a country outside the EU/EFTA and without a social security agreement (United Arab Emirates, for instance)
2. If these citizens are moving to a country outside the EU/EFTA and with a special bilateral agreement (Brazil, for instance). The specific agreement must say that social security can be refunded.

Cancel your bills

Even though you are leaving Switzerland, you do not want to leave any bills unpaid. You will need to officially cancel multiple bills.

One good example is to cancel your health insurance. This will require your proof of departure since health insurance is mandatory in Switzerland.

You will also need to cancel your household and personal liability insurance. There are many insurance policies in Switzerland; you should be careful about canceling everything properly.

Handle your property

Before leaving Switzerland, you will need to leave your apartment or house.

If you are renting an apartment or house, you will have to give it back. Many rental contracts have a long notice period. Therefore, it makes sense to cancel it a lot in advance if possible. This will definitely help. If you cannot do it on time, you will have to search for a new tenant and propose a replacement tenant to your landlord. If you propose one financially solvent tenant that takes back the lease on the same conditions, you will be released. Unfortunately, if you do not find it, you will have to continue paying until the end of the notice period.

If you are an owner, you will need to decide whether you want to sell or keep the property. If you would like to sell your property, you will also have to do it fairly in advance because this is much easier when you are still in Switzerland. On the other hand, if you would like to keep the property, you will need to make sure all the papers are ready to rent it out. In this case, it is also important to mention that well in advance to your bank and to plan accordingly. Indeed, mortgage conditions are not the same for self-occupied properties and for investment properties.

If you are renting out from abroad, you will have to ensure you have some help in the country to handle emergencies while you are abroad. And it is up to you to find a tenant or use a property management company to do it for you.

Prepare your last tax return

When you declare your intent to leave Switzerland, your municipality will prepare the settlement of your taxes.

They will make sure that any previous year is completely accounted for and paid for. And they will also take care that the current year is accounted for.

Since you are usually not leaving on the first of January, it means you will have to complete a partial tax return and pay out taxes for a partial year. They will annualize your income to find out your tax brackets and apply it to the effective income of that year.

You should then be presented with the settled account and pay out the balance (or get paid the balance if you have paid too much).

Plan your banking and investment accounts

There is one important thing you should prepare in advance before leaving Switzerland: your banking and investment accounts (if any).

You will need to make sure that the provider will keep you if you move abroad. Many financial services providers will not accept you if you move abroad. This is the case for most digital banks, for instance. And some others will charge an extra expensive fee if you are not in Switzerland. You will be considered a non-resident, and it is notoriously difficult to find a Swiss bank for non-residents.

So make sure you either move to a new provider that will accept you or make sure your current provider will keep you as a non-resident.

Conclusion

Many things are changing when leaving Switzerland. It is important to be prepared for them.

Changing countries is not a small decision that you can take without thinking about it. And you will have much better mileage if you have prepared for it well rather than if you are discovering all this stuff on the go.

I would recommend you plan each of these changes properly and that you think about your long-term finances. Leaving Switzerland will have a financial impact on your finances that you cannot ignore.

Did you leave Switzerland? Do you have any tips?