In Switzerland, the occupational benefits (BVG) is an integral part of the three-pillar system, and is designed to ensure a high standard of living. adequate income at retirement. However, access to these funds is not automatic and is subject to certain conditions.
- The insured must have contributed to Pillar 3a in the year for which you wish to purchase contributions, and also in the year of purchase.
- He must have received a income subject to AHV in Switzerland during the buyback year and the buyback year.
- In the year of the buyback, the insured must have paid the full ordinary contribution (7258 francs for 2025 and 2026).
Conditions for withdrawing BVG capital
BVG/LPP withdrawals are possible in the following cases:
Purchase of a principal residence
You can use your BVG/LPP credit to finance thepurchase or the construction of your main home, or for amortize an existing mortgage. This withdrawal is possible up to three years before normal retirement age. After age 50, the maximum amount that can be withdrawn is limited.
Cooperative home ownership
BVG/LPP assets can be used to purchase shares in a building or housing cooperative, provided the property is intended for your own use. personal use.
Starting a self-employed business
If you leave your salaried job to become self-employed in Switzerland, you can withdraw thein full of your LPP capital. The request must be made within one year of the start of your self-employed activity, and must be supported by evidence of your activity.
Definitive departure from Switzerland
If you are moving permanently from Switzerland to another country outside the European Union (EU) or the European Free Trade Association (EFTA), you can withdraw your entire LOB credit.
On the other hand, if the departure is to a member country of from the EU or EFTA, only the extra-mandatory portion can be withdrawn as a lump sum, while the mandatory portion must remain in Switzerland until retirement age, unless you are not subject to mandatory social insurance in the country of destination.
Retirement
You can choose to withdraw your benefits as a single lump sum, an annuity, or a combination of both. This choice depends on the regulations of your pension fund.
The capital can be withdrawn at the normal retirement age, i.e. 65 years for men and 64 years for women.
Early withdrawal is possible from five years before legal retirement age, subject to the specific rules of your pension fund.
Tax on BVG capital withdrawals
Taxation method
Amounts withdrawn from the 2nd pillar are taxed separately other revenues, to a prime rate. These taxes apply at federal, cantonal and municipal level.
The Confederation and the cantons apply progressive tax rates on capital withdrawals. The higher the capital withdrawn, the higher the tax rate. It may therefore be advantageous to spread withdrawals over several tax years to reduce the progressive nature of the tax.
Cantonal variations
Tax rates vary from canton to canton. For example, for a withdrawal of CHF 100,000the total tax (federal, cantonal and municipal) can range from 4.7% in the canton of Geneva 8.0% in the canton of Appenzell Ausserrhoden.
Tax on BVG/LPP withdrawals by canton
| Canton | CHF 100,000 | CHF 250,000 | CHF 500,000 | 1 Mio. CHF | 5 Mio. CHF | 10 Mio. CHF |
|---|---|---|---|---|---|---|
| AG, Aarau | 4.9% | 7.2% | 8.3% | 8.8% | 9.1% | 9.1% |
| AI, Appenzell | 3.3% | 4.6% | 5.2% | 5.3% | 5.3% | 5.3% |
| AR, Herisau | 8.0% | 9.0% | 9.9% | 11.1% | 12.0% | 12.1% |
| BE, Bern | 4.7% | 6.6% | 8.4% | 9.7% | 11.1% | 11.2% |
| BL, Liestal | 3.9% | 4.9% | 6.7% | 9.6% | 9.7% | 9.7% |
| BS, Basel | 5.3% | 8.3% | 9.5% | 10.0% | 10.2% | 10.3% |
| FR, Fribourg | 3.3% | 7.0% | 9.3% | 10.4% | 11.1% | 11.2% |
| ZH, Zürich | 4.9% | 5.9% | 7.2% | 11.2% | 22.0% | 26.2% | GE, Geneva | 4.6% | 6.7% | 7.8% | 8.5% | 8.9% | 8.9% |
| GL, Glarus | 5.2% | 6.2% | 6.7% | 6.9% | 6.9% | 6.9% |
| GR, Chur | 3.2% | 4.3% | 5.7% | 5.9% | 5.9% | 5.9% |
| JU, Delémont | 6.2% | 8.6% | 9.7% | 10.1% | 10.3% | 10.3% |
| LU, Luzern | 5.1% | 7.0% | 8.0% | 8.4% | 8.5% | 8.5% |
| NE, Neuchâtel | 5.7% | 7.9% | 8.5% | 8.8% | 8.9% | 8.9% |
| NW, Stans | 3.7% | 5.0% | 5.6% | 5.7% | 5.7% | 5.7% |
| OW, Sarnen | 5.8% | 6.8% | 7.3% | 7.5% | 7.5% | 7.5% |
| SG, St. Gallen | 5.9% | 6.9% | 7.5% | 7.6% | 7.6% | 7.6% |
| SH, Schaffhausen | 3.3% | 5.0% | 5.5% | 5.7% | 5.7% | 5.7% |
| SO, Solothurn | 5.0% | 7.0% | 7.7% | 7.8% | 7.8% | 7.8% |
| SZ, Schwyz | 2.4% | 5.7% | 8.5% | 10.4% | 10.4% | 10.4% |
| TG, Frauenfeld | 6.6% | 7.7% | 8.2% | 8.4% | 8.4% | 8.4% |
| TI, Bellinzona | 4.4% | 5.4% | 7.3% | 8.1% | 8.1% | 8.1% |
| UR, Altdorf | 4.3% | 5.3% | 5.8% | 6.0% | 6.0% | 6.0% |
| VD, Lausanne | 4.6% | 7.0% | 8.4% | 9.1% | 9.4% | 9.5% |
| VS, Sion | 4.8% | 6.3% | 9.1% | 10.3% | 10.3% | 10.3% |
| ZG, Zug | 2.9% | 4.6% | 5.8% | 6.3% | 6.5% | 6.6% |
