Switzerland Fact-File Part 7:
Business Owner Welfare and Lifestyle

7.3 Switzerland Offshore and International Pensions

International and Offshore Pension Schemes

Pension Portability

Where a person is not a Swiss national but comes from a country that has a bilateral pension agreement with Switzerland, they are entitled to a Swiss pension. In such cases, pension contributions are non-refundable on leaving Switzerland and are non-transferrable to another pension scheme. If the country of residence is not part of the a bilateral pension agreement, contributions to the basic scheme can be refunded on leaving Switzerland. A person who is a citizen of a country that is party to a bilateral agreement with Switzerland (this includes the EU countries) may transfer their pension to the second pillar of Swiss pension provision; the 'occupational benefits' pillar.

For those wishing to move to Switzerland temporarily, they may be exempt from contributing to the basic scheme.

For UK citizens moving to Switzerland, QROPs (Qualifying Recognised Overseas Pensions Schemes) may be the way to go. QROPs are designed for those who have contributed to a UK pension scheme, but are now living elsewhere (for example in Switzerland) as an expatriate, and have terminated their residence in the country.

For the first five years after transfer, the QROPS provider is obliged to report transfers and payments to HM Revenue and Customs, but after that period, the various tax benefits of the retirement scheme can be taken according to Swiss rules.

QROPS are also more flexible than their UK counterparts, with the pensioner not obliged to purchase an annuity at 75 (or face a tax penalty for not doing so), meaning that the assets can be invested elsewhere, and a greater proportion of the pensioner's wealth can be passed on to his or her beneficiaries.