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Taxes

  • Income and Wealth Tax
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  • Church Exit: Calculate Tax Savings
  • Inheritance Tax
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  • Tax Apportionment
  • Tax Shield / Bouclier Fiscal
  • Swiss Tax Burden Map
  • Withholding Tax at Source
  • Withholding Tax vs. Tax Return
  • Home Office Deduction

Pension

  • Pillar 3a Maximum Contribution and Tax Savings
  • Pillar 3a Staggering
  • Pension Withdrawal Tax
  • Pension Fund Contributions
  • Annuity or Lump Sum
  • OASI Pension
  • OASI Deferral
  • Early Retirement
  • Pension Gap
  • Wealth Planning Switzerland

Business

  • Dividend vs. Salary
  • Corporate Tax
  • Corporate Tax Comparison Between Locations
  • Market Salary
  • Payroll Costs
  • OASI Contributions
  • VAT
  • Freelancer Hourly Rate
  • Liquidation Tax
  • Company Car
  • Participation Deduction
  • Partial Taxation
  • Withholding Tax
  • Stamp Duty
  • Working Days

Real Estate

  • Imputed Rental Value
  • Property Maintenance Deduction
  • Property Tax
  • Property Gains Tax
  • Property Transfer Tax
  • Affordability
  • Fixed-Rate vs. SARON Mortgage
  • Amortise or invest
  • Indirect Amortisation
  • Advance Withdrawal
  • Rent or Buy
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Advance Withdrawal: Pension Fund or Mortgage?

Withdraw pension fund capital or take a higher mortgage? Comparison: capital withdrawal tax, pension reduction, and mortgage costs.

The advance withdrawal for home ownership (WEF) allows the use of pension fund assets for acquiring owner-occupied property. This reduces the mortgage but also the retirement capital. The question: is the withdrawal worthwhile or is a higher mortgage cheaper in the long run?

Related Calculators

Affordability Calculator

Can I afford the mortgage? Imputed costs vs. 1/3 of gross income according to banking guidelines.

Amortise or invest?

Comparison: pay off mortgage vs. invest capital. Tax effect, interest savings, returns, and net advantage over time.

Capital Withdrawal Tax

Calculate the tax on capital withdrawals from pension funds and Pillar 3a.

How does the advance withdrawal work?

Under Art. 30a-30d BVG, you can withdraw pension fund assets for: - Purchase or construction of owner-occupied property - Repayment of a mortgage - Renovations/value-enhancing investments - Participation in housing cooperatives Minimum amount: CHF 20,000 (possible every 5 years) From age 50: Maximum = balance at age 50 or 50% of current balance (whichever is higher)

Costs of the withdrawal

Immediate: Capital withdrawal tax (cantonal, 3-8% of the withdrawal amount) Long-term: The withdrawn capital is missing at retirement. With a CHF 100,000 withdrawal, 20 years to retirement, and a 6.8% conversion rate, the pension reduction is approximately CHF 570-690/month -- for life (depending on the BVG interest rate). Purchase restriction: Voluntary pension fund purchases are only tax-deductible after full repayment of the advance withdrawal (Art. 79b para. 3 BVG).

Repayment obligation

The advance withdrawal must be repaid upon: - Sale of the property - Granting of rights (e.g., usufruct) - Death of the insured person (unless survivor benefits become due) Voluntary repayment is possible at any time (minimum CHF 10,000, WEFV Art. 7). Upon repayment, the capital withdrawal tax is refunded proportionally.

Frequently Asked Questions

Is pledging better than withdrawal?+
Can I combine pillar 3a and the advance withdrawal?+
What happens in case of divorce?+