Retiring abroad
Swiss savings, lower costs elsewhere. Geo-arbitrage can bring independence years closer, if you count taxes, health care and the franc.
What it is
Retiring abroad means living on Swiss savings and pensions in a country where daily life costs less. Lower spending shrinks the pot you need, often by a third or more.
Who it suits
People with ties to another country, those who enjoy a different climate and pace, and those for whom Swiss costs are the main obstacle.
The Swiss angle
Leaving Switzerland can trigger a payout of Pillar 3a and, outside the EU and EFTA, part of your pension fund. Lump sums paid to people abroad face Swiss withholding tax, which may be reclaimable under a treaty. Health insurance changes, and spending in another currency adds exchange-rate risk.
How to model it
Enter your expected budget abroad as retirement spending. Keep a margin for currency swings and for returning to Switzerland later. Read retiring abroad from Switzerland, southern Europe compared and Thailand, and see the Retire abroad hub.
Tools for this plan
Terms
- Geo-arbitrageEarning or saving in a high-cost country and living in a cheaper one.
- Tax residenceThe country where you are taxed on your worldwide income, usually where you live and have your main ties.
- Double taxation agreementA treaty between two countries that decides which one taxes which income, so you are not taxed twice.
Frequently asked questions
Do I keep my AHV pension abroad?
AHV pensions are generally paid abroad. Rules for voluntary insurance and for pension-fund and 3a withdrawals depend on the country, especially EU and EFTA versus elsewhere.
Is this tax advice?
No. Taxes on Swiss pensions depend on the destination and the treaty. Talk to a cross-border adviser before you move.
Related reading
Retire abroad
Retiring in Thailand from Switzerland: budget, visa and risks
Thailand can cut your monthly budget to about CHF 1,800. What the retirement visa asks for, how foreign income is taxed and the risks that matter at 70.
Retire abroad
Portugal, Spain, France or Italy: a Swiss retiree’s comparison
Four southern European options compared for an early retiree from Switzerland: visas, tax approach, healthcare and budget in francs. Facts to check.
Retire abroad
Retiring abroad from Switzerland: what actually changes
Lower costs are only part of it. What happens to your AHV, pension fund, Pillar 3a, health insurance and taxes when you leave Switzerland to retire.