When an individual moves to an EU/EFTA country, their social security coverage is reviewed. This is verified by the BVG Guarantee Fund, which must confirm to the pension fund that the individual is not subject to social security contributions in that EU/EFTA country; if this is the case, a cash payment may also be made within the EU/EFTA countries. If this cannot be confirmed, the vested benefits must remain in a blocked account (vested benefits account) in Switzerland.
EU Member States: Belgium, Bulgaria, Denmark, Germany, Estonia, Finland, France, Greece, Ireland, Italy, Croatia, Latvia, Lithuania, Luxembourg, Malta, the Netherlands, Austria, Poland, Portugal, Romania, Sweden, Slovakia, Slovenia, Spain, the Czech Republic, Hungary, and Cyprus
EFTA countries: the Principality of Liechtenstein, Iceland, Norway, and Switzerland
If you are leaving a country outside the EU/EFTA, no further verification is required. However, a confirmation of deregistration from the municipality is mandatory, and proof of civil status may also be required.
Important Information for Traveling to the European Union:
Restrictions on the cash withdrawal of pension fund assets after departure:
Tax Issues Related to the Disbursement of Pension Fund Assets When a Person Is No Longer a Resident of Switzerland:
A tax is due when pension fund assets are withdrawn. The amount of this tax varies not only from canton to canton but also from municipality to municipality. However, if you are no longer a resident of Switzerland, this capital withdrawal tax can no longer be levied. Instead, a withholding tax is deducted from the capital to be paid out; this tax is usually lower than the capital withdrawal tax but also varies from canton to canton. This withholding tax is lowest in the canton of Schwyz.