Vested Benefit Account Emigration Fees

Dear sirs/madames,

I found your vested benefits account comparison very interesting. Thank you for making this service available.

I am a cross-border worker and have a vested benefits account in Switzerland. I am looking for the ideal vested benefits foundation, particularly with regards to interest earned and early-withdrawal fees charged.

However, I have found out that the Schwyzer Kantonalbank charges fees for early withdrawal of vested benefits due to emigrating from Switzerland. A fee of 800 Swiss francs according to the bank!

I would be grateful if you could update your comparison accordingly. It would be fantastic if you could update this information for other banks as well. My impression is that some banks have introduced very high fees for this service.

Thank you very much!

With kind regards.

Hi there,

The Schwyzer Kantonalbank charges a flat fee of 800 Swiss francs for a full withdrawal of assets held in a vested benefits account when the account holder resides outside of Switzerland.

The bank does not charge a fee for a full withdrawal when the account holder resides in Switzerland.

Many emigrants place their vested benefits in vested benefits foundations in the canton of Schwyz in order to benefit from the relatively low withholding tax levied by that canton. That makes this fee particularly relevant for cross-border workers and for Swiss who move abroad before withdrawing their Swiss vested benefits rather than withdrawing assets before leaving the country.

Make sure to consider withdrawal fees and weigh these up against the potential tax savings when choosing a vested benefits account. If you have relatively little in the way of vested benefits, or if the tax in your canton of residence or employment is not exceptionally high, then using a vested benefits foundation which does not charge a withdrawal fee may work out cheaper even if it is not domiciled in a low-tax canton.

Best regards from Moneyguru

More on this topic:
Vested benefits account comparison

Much more important would be to consider tax implications of the withdrawal in the new country of residence in this case. Some countries (US, AFAIK) count withdrawal as pure income and will literally rob you off with income taxes on it, some don't tax it at all