Pensions

The 2004 Agreement on pensions avoids double taxation of former European Union (EU) employees living in Switzerland. Prior to the Agreement their pensions were taxed both by the EU and by Switzerland.

A bench on a field in the mountains.
Retired employees of the EU institutions resident in Switzerland will not be taxed twice. © Rolf Weiss

Under the Agreement, Switzerland waives taxation of pensions that have already been taxed at source in the EU. However, the tax-exempt amount can be taken into account when determining the rate of taxation on other income that is subject to taxation. Switzerland has concluded double taxation Agreements with the EU member states with a similar reciprocity provision. These provisions, however, are not applicable to former EU employees owing to the supranational character of EU bodies and agencies, hence the need to conclude a separate agreement.

Chronology

  • 31.05.2005: Entry into force of the Agreement
  • 17.12.2004: Approval by Parliament
  • 26.10.2004: Signing of the Agreement (in the framework of Bilateral Agreements II)