Leaving Switzerland for the USA

Hello!

I plan to leave my job at the end of 2026 (November). I want to officially leave my city of residence (in Wallis) in December 2026 and be in the USA in January 2027.

-How do I withdraw my second pillar pension funds, I understand I've to send it in Schwyz (Liberty) but can I withdraw from Liberty to a bank account in Switzerland after I quite officially my city and before be in the US?

-Is it better to withdraw in Switzerland before leaving (if it's possible) to avoid being taxed in the USA, or transfer to Liberty, then move to the US and ask Liberty to send me the money from Switzerland to USA?

Thank you for your help :)

Hi there,

1. Before you make an early withdrawal of your second pillar benefits on account of moving from Switzerland to a non-EFTA/EU country, it is beneficial to transfer the assets to a vested benefits foundation in a canton that has a low withholding tax for early withdrawals due to emigration. The reason is that when you are not a tax resident of Switzerland, the withdrawal is taxed by the canton in which the vested benefits foundation or pension fund is domiciled. Schwyz currently has the lowest withholding tax.

Examples of vested benefits service providers with foundations domiciled in Schwyz include Liberty Vorsorge, Finpension, the Schwyzer Kantonalbank, and the Sparkasse Schwyz, among others. Not all of these cater to short-term accounts for the purpose of emigration. It is also important to look at the fees charged for early withdrawals due to emigration. 

You can have the money transferred to a Swiss bank account if you have one.

2. In order to make an withdrawal due to emigration, you have to prove that you are no longer a tax resident of Switzerland. Normally, you must submit the deregistration certificate noting your move to the foreign country. You receive this certificate from your municipality when you deregister.

Whether or not the money is taxable in your new country of residence depends on the double-taxation agreement (DTA) between Switzerland and that country. In the case of the US, the DTA stipulates that the benefits are taxable in the US, and not in Switzerland. This means you can reclaim the Swiss withholding tax.

I am not familiar with US taxes for foreign pension benefits. If you have a sizeable amount of pillar 2 benefits, it may be worth consulting a tax expert who specializes in Swiss-US immigration.