Personal equity

News from DL MoneyPark and information on the financial market and Swiss romande real estate

Author : Kristen

2nd pillar (occupational retirement planning) and 3rd pillar (private linked pension plan 3a)

If you look on the annual 2nd pillar statement, under the section "vested benefits" or "available assets," you will find the amount available to build personal equity in order to purchase a property.

Rules for withdrawing from vested benefits:

  • Spousal consent is required.
  • Minimum withdrawal is CHF 20,000, with a mandatory 5-year waiting period between each withdrawal. If the amount is less than CHF 20,000, it is possible, in certain pension funds, to transfer the difference in order to withdraw the maximum amount.
  • A disclosure is registered at the Land Register (restriction of the right to alienate).
  • A tax is levied, between 3% and 15%, proportionate to the amount and in relation to the cantonal and communal tax rate. In the canton of Vaud for example, if two spouses withdraw their vested benefits in the same year, the tax rate will be determined by adding the two sums. If the vested benefits are withdrawn in two different fiscal years, the tax will be reduced.
  •  The retirement pensions are reduced as well as the insurance benefits, depending on the private linked pension plan (disability and survivors pension).
  • If the property is sold, the anticipated payment must be refunded. The tax is returned if the request is submitted within three years.
  • If the insurance holders are older than 50, they can obtain the maximum vested benefits that they have a right to at age 50, otherwise, they can use half of the accumulated vested benefits at their disposal at the time of payment.

Rules for using the pension fund as collateral:

  • Spousal consent is required.
  • Mortgage interest costs are increased (deductable from taxable income).

The 3rd pillar (private linked pension plan 3a)

The assets from the 3rd bank pillar and/or the value of the life insurance purchase can be withdrawn or used as collateral. In the case of withdrawal, the same tax as for the 2nd pillar will be levied. The tax rate will be determined by adding all of the amounts withdrawn from the 2nd and 3rd pillars by the couple.


Articles relating to personal equity