When buying or selling a property that you financed with vested benefits, there are a few points to consider. We’ve summed them up for you.
If you sell a property before you reach statutory retirement age, you must repay the advance withdrawal of vested benefits. The repayment is made to the current pension fund, which will confirm the repayment of the advance withdrawal and create the request to cancel the sale restriction.
If the advanced withdrawal cannot be repaid before the property is sold, an irrevocable promise to pay is required. The bank or notary will confirm the amount to be transferred to the collective account (CH81 0023 0230 1011 8870 0) of the UBS Vested Benefits Foundation AG (important for repayment: Note VB account number/ last name / first name / “EHO repayment”). If the repayment is expressly recorded in the purchase contract, no additional promise of payment is required.
You can withdraw funds from your vested benefits account to purchase property. If funds are withdrawn, the law requires that a “sales restriction” note be made in the land registry. This means that the purchased property can be sold before you reach statutory retirement age if the sales restriction has been removed by the provider.
This sales restriction can be removed, upon request, in the following cases:
from 5 years before statutory retirement age (59 for women and 60 for men)
when you’ve repaid the money you withdrew early on
when you have an irrevocable promise to pay if you cannot make the repayment before the sale
upon transfer to a new property serving as your new main place of residence.
If the advance withdrawal was not made with the UBS Vested Benefits Foundation AG, the foundation requires information on the ownership structure, land register sheet, municipality and the amount (e.g., with a copy of the sales restriction) to remove the restriction.
If you sell a property and buy another one, and this property becomes your main place of residence, the existing sales restriction in the land registry must be deleted and another one must be entered for the new property. It's crucial to provide information on the previous property's ownership structure, land registry sheet, municipality (e.g., with a copy of the sales restriction), the new property and the amount (e.g., with a tax notification or a statement from the EHO withdrawal). An official certified purchase contract and a declaration of consent are also required for entering the sales restriction of a new property in the land registry. The sales restriction on the previous property will then be removed and a new one registered for the new property.