Introduction
Launching a self-employed business is an exciting adventure, but one that often requires investment financial capital. For (former) Swiss workers, the pension capital BVG (2nd pillar) can be a valuable resource for financing this project.
In fact, the law allows people who leave salaried employment to become self-employed to remove part or all of their retirement capital. However, this withdrawal is subject to strict rules designed to ensure the responsible use of these funds.
How do I withdraw my BVG to start a self-employed business?
1. Terminate your salaried activity
The first step in withdrawing BVG capital for self-employment is to quit your salaried job.
However, it is possible to continue working if the salary received is below the BVG entry threshold of CHF 22,680 (in 2025).
2. Become self-employed
You must prove that you officially have the self-employed status. This includes registration with the relevant authorities, such as an AHV fund for self-employed workers.
Withdrawal from the BVG is reserved for individuals working as sole proprietorship (RI). If you set up a company (SA or Sàrl), you are considered an employee of your company, and withdrawal from the BVG is not permitted in this case.
3. Obtain the agreement of your spouse or partner
If you are married or in a registered partnership, you must obtain thewritten agreement your spouse or registered partner.
This agreement is designed to protect our joint financial interests, given that BVG capital is an important part of your retirement provision.
Disadvantages of withdrawing your BVG/LPP to start a self-employed business
Withdrawing your BVG capital to start a self-employed business may seem like an attractive opportunity, but it also entails risks to consider:
Reduced pension coverage
This can lead to a significant drop in your income once you retire. The withdrawal will reduce your retirement benefits, and as a self-employed person, you won't be contributing to the BVG, leaving gaps in your pension once you retire.
It is therefore advisable to take out a 3rd pillar and make regular payments. As a self-employed person, you can contribute up to 20% income (maximum CHF 35,280), compared with just CHF 7,056 for salaried employees.
It's also worth contributing voluntarily to the LPP. Savings contributions to the pension fund are tax-deductible up to a maximum of 25% of annual AVS taxable salary.
Tax on BVG withdrawal
The amount withdrawn from your BVG is taxed separately of your other income, at a preferential rate.
The rate are progressive and vary according to the amount withdrawn and the canton of residence. The higher the amount, the higher the tax rate.
Each canton has its own tax rates. It is therefore essential to consult the rates applicable in your canton to estimate the amount of theLPP withdrawal tax.
