Publié le 26.07.2026 · Dernière revue des sources : 26.07.2026 · Notre méthode

Leaving Switzerland: what really happens to your 2nd pillar

You are leaving Switzerland for good, and you wonder what becomes of your 2nd pillar. The answer comes down to a single distinction: your destination. To an EU or EFTA country, part of your assets stays locked in Switzerland; outside the EU/EFTA, you can withdraw everything in cash.

This article describes the law in force in 2026 for a definitive departure from Switzerland. It concerns expatriation, not the cross-border worker who keeps their Swiss job: as long as you contribute in Switzerland, your 2nd pillar doesn't move. Each rule points to its legal basis, dated and sourced — not to a custom.

Your 2nd pillar doesn’t disappear: it goes into vested benefits

The 2nd pillar is your occupational provision, governed by the LPP: your employer’s pension fund, which supplements the AVS. When your job ends before an insured event (retirement, disability, death), you are entitled to a vested-benefits payment — the capital accumulated in your name (LFLP, art. 2).

If you don’t join a new Swiss fund, you must keep this provision in another form: a vested-benefits account or policy (LFLP, art. 4). Vested benefits are simply your assets kept safe outside an employer’s fund.

And if you say nothing? Your fund transfers your assets to the substitute institution, between six months and two years after your departure (LFLP, art. 4, para. 2). In other words: even when you leave, your money still exists, somewhere.

Definitive departure: why your destination changes everything

In principle, leaving Switzerland for good opens up the cash payment of your vested-benefits (LFLP, art. 5). But a crucial reservation applies as soon as you settle in the EU or EFTA. To understand it, you have to split your assets in two.

The mandatory part: the old-age assets built up under the legal minimum (art. 15 LPP).
The extra-mandatory part: everything beyond this minimum (more generous plans, buy-ins).

The rule: you cannot withdraw the mandatory part in cash if you remain compulsorily insured against old age, disability and death in an EU state, in Iceland or in Norway — or if you reside in Liechtenstein (LFLP, art. 25f). Put plainly, if you work (or are otherwise covered) in your new country, the mandatory part stays in Switzerland. The extra-mandatory part remains withdrawable.

Two nuances that change everything:

If you move to the EU/EFTA without being compulsorily insured there, you can also recover the mandatory part — provided you prove it to the LPP Guarantee Fund.
The United Kingdom is no longer covered by free movement since Brexit: a departure to the United Kingdom is treated as a departure outside the EU/EFTA (full withdrawal possible).

Destination of definitive departure	Mandatory part (LPP assets, art. 15)	Extra-mandatory part	Cash withdrawal
EU/EFTA, compulsorily insured on site	Locked (stays in vested benefits)	Withdrawable	Partial — extra-mandatory only
EU/EFTA, not insured on site (on proof)	Withdrawable	Withdrawable	Full possible
Liechtenstein (residence)	Locked	Withdrawable	Partial — extra-mandatory only
Outside EU/EFTA (United Kingdom included)	Withdrawable	Withdrawable	Full possible

When do you recover the locked part?

The locked mandatory part isn’t lost: it waits for you on a vested-benefits account or policy in Switzerland. It can be paid out to you at the earliest five years before the AVS reference age, so from age 60, and it is due at the reference age, 65 (OLP, art. 16). An earlier payment remains possible in case of recognised full disability.

The role of the LPP Guarantee Fund and the substitute institution

Two bodies keep coming up in the process. They don’t do the same thing.

The LPP Guarantee Fund oversees the mandatory part. It examines whether you are compulsorily insured in your EU/EFTA country; without this check, your fund won’t pay out the mandatory part in cash. For the extra-mandatory part, no examination is required; for a departure outside the EU/EFTA, none either (LPP Guarantee Fund).
The substitute institution is your default vested-benefits institution. If you never indicated where to transfer your assets, they may have been paid there (LFLP, art. 4). It’s a good starting point for finding forgotten assets.

Which steps and which supporting documents?

The cash payment is requested from your pension fund or your vested-benefits institution. Prepare:

The proof of definitive departure: a departure or deregistration certificate, issued by your commune’s residents’ registry.
The written consent of your spouse or registered partner — without it, no payment (LFLP, art. 5, para. 2).
For the mandatory part (EU/EFTA): the proof of your (non-)liability to compulsory insurance, examined by the LPP Guarantee Fund.

Depending on your destination country, a waiting period applies before payment (LPP Guarantee Fund). Anticipate: an incomplete file delays everything.

How much does it cost in tax?

A single tax, at a reduced rate — and not necessarily where you think

A capital withdrawal from the 2nd pillar is taxed once, separately from the rest of your income, at a reduced rate: one fifth of the ordinary scale (LIFD, art. 38). If you are already domiciled abroad at the time of payment, the tax is levied at source (LIFD, art. 96). It goes to the canton where your pension institution or vested-benefits foundation is based (LIFD, art. 107) — not to your last Swiss commune. Hence a point often ignored: the canton of your vested-benefits foundation changes the bill. Finally, depending on the double-taxation agreement between Switzerland and your country of residence, this tax at source may be refunded to you, on attestation from the foreign tax authority (AFC, Taxation at source, 2025).

Key points

Departure to the EU/EFTA while insured there: the mandatory part (LPP assets) stays locked in Switzerland; only the extra-mandatory part can be withdrawn.
Departure outside the EU/EFTA (United Kingdom included): full withdrawal possible, mandatory part included.
The locked part isn’t lost: it waits for you in vested benefits, paid out at the earliest at 60 (OLP, art. 16).
The capital withdrawal is taxed once, at a reduced rate, to the canton of your institution — the choice of vested-benefits foundation matters.
Before any irreversible step, locate your destination and quantify the tax: that’s exactly what the Relokea engine does.

Practical tips

Check your liability in your host country BEFORE requesting a withdrawal: it’s what decides the fate of the mandatory part.
Compare the cantons of the vested-benefits foundations: at equal capital, the tax at source varies widely by location.
Look into the double-taxation agreement of your country: it may let you recover the Swiss tax.
Gather your supporting documents early: departure certificate, spouse’s consent, proof of liability.
Search for your forgotten assets with the substitute institution before leaving — a former job sometimes leaves a dormant account.

Common mistakes

Believing you recover everything by moving to the EU. If you are compulsorily insured there, the mandatory part stays locked in Switzerland (LFLP, art. 25f) — you only get the extra-mandatory part.

Forgetting the extra-mandatory part. Even to the EU/EFTA, it can be withdrawn in cash; leaving it dormant without knowing is depriving yourself of available capital.

Ignoring the canton of your vested-benefits foundation. It's what sets the tax at source on your capital; choosing it at random can cost dearly.

Leaving without your spouse's written consent. Without this agreement, no cash payment is possible (LFLP, art. 5, para. 2).

Frequently asked questions

I'm moving to France: can I take my whole 2nd pillar in cash? Not the whole of it if you are compulsorily insured in France against old age, disability and death (for example if you work there). In that case, the mandatory part (your LPP assets) stays locked on a vested-benefits account in Switzerland; only the extra-mandatory part can be withdrawn (LFLP, art. 25f). If you are not compulsorily insured in France, you can also recover the mandatory part, on proof supplied to the LPP Guarantee Fund.

And if I settle outside the EU/EFTA, in Canada or the United States? Full withdrawal is possible, including the mandatory part. No examination of liability to compulsory insurance is needed (LPP Guarantee Fund). You need proof of definitive departure and, if you are married or in a registered partnership, the written consent of your spouse (LFLP, art. 5). The capital paid out is taxed once, at a reduced rate.

Where do my assets go if I say nothing to my pension fund? They aren't lost. Absent instructions from you, your fund transfers your vested benefits to the substitute institution, at the earliest six months and at the latest two years after the end of employment (LFLP, art. 4). This is also how forgotten assets from a former employer are found again.

How much tax is paid on a capital withdrawal? The capital is taxed separately from the rest of your income, once, at a reduced rate — one fifth of the ordinary scale (LIFD, art. 38). If you are already domiciled abroad, the tax is levied at source by the canton where your institution or vested-benefits foundation is based (LIFD, art. 96 and 107). Depending on the applicable double-taxation agreement, it may then be refunded to you.

Simulate what happens to your 2nd pillar before you leave. The Relokea engine locates your destination (EU/EFTA or not), separates the mandatory and extra-mandatory parts, and estimates the tax on your capital by the canton of your institution — before any irreversible step.

Review my 2nd pillar

Official sources

LPP Guarantee Fund (SFBVG) — Cash payment on departure abroad (accessed on 26/07/2026)
OFAS (BSV) — FAQ: can I withdraw my LPP capital if I leave Switzerland? (accessed on 26/07/2026)
LFLP (SR 831.42) — art. 5 (cash payment) and 25f (EU/EFTA restriction), as at 1.1.2024 (accessed on 26/07/2026)
OLP (SR 831.425) — art. 16 (payment of old-age benefits), as at 1.1.2024 (accessed on 26/07/2026)
LIFD (SR 642.11) — art. 38, 96 and 107 (taxation of capital benefits), as at 1.1.2025 (accessed on 26/07/2026)
ch.ch — Receiving LPP and private provision abroad (accessed on 26/07/2026)
AFC (ESTV) — Taxation at source (state of legislation as at 1.1.2025) (accessed on 26/07/2026)

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