OPP2

Below, you’ll find the most important elements related to the pension funds (LPP) when buying a property.

 

OPP2 articles

 

It is allowed to use your pension funds (LPP) in order to fund the purchase of your main residency. You can either withdraw the available amount or pledge it. Please, be aware that the first 10% of your down payment, as well as the closing costs, can not be funded through your pension funds.

 

Early withdrawal

 

You can withdraw the available amount as part of the down payment, to pay back part or all of your mortgage loan, or use it to pay for renovation work. Again, these options are only available when it comes to your main residency, whether it is in Switzerland or abroad (for exemple, people who live in France next to the border, but work in Switzerland).

 

A few restrictions :

 

  • The minimum amount to withdraw is CHF 20k
  • The spouse must give his/her agreement for the withdrawal to be made
  • A withdrawal can only happen every 5 years
  • After 50 years old, you can either withdraw half of the amount at your dispoal or the amount available when you were 50 years old
  • 3 years before your retirement age, the withdrawal is not possible anymore
  • In some isolated situations, your pension fund could refuse the withdrawal
  • When selling your main residency, the amount that was withdrawn at the purchase, will be pay back to the pension fund

 

Pledging

 

Instead of withdrawing your pension funds, you could ask to pledge them, in order for exemple to avoid paying taxes on the withdrawal.

 

 

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