How to transfer UK pension to Switzerland

Moving or retiring to Switzerland from the UK? You’ll have a lot to organise ahead of your big move, but don’t forget about your pension.

You may want or need to transfer it overseas, so that you can easily access your hard-earned pension income once you're settled in Switzerland. But is it possible to move a UK pension to another country?

Read on for a comprehensive guide on how to transfer a UK pension to Switzerland. This includes how to do it step-by-step, which pension types are suitable for transfer, and any tax implications you need to know about.

And remember, if you’re looking to move pension savings or other income across international borders, the Wise account is an ideal solution. It offers low transfer fees*, the mid-market exchange rate and a choice of 40+ currencies, as well as being safe and secure for transferring large sums.

Can I transfer my UK pension to Switzerland?

Yes, you should be able to transfer a UK private or workplace pension to Switzerland.

However, your eligibility to move a pension abroad all depends on the conditions and restrictions of your particular pension scheme.

You’ll also need to move your pension to what is known as a Qualifying Recognised Overseas Pension Scheme (QROPS) in Switzerland. This means that it’s on HMRC’s list of approved QROPS schemes.

Moving your pension to a QROPS makes it easier to transfer your pension, as well as helping you swerve a high tax bill. We’ll cover QROPS and how it works in more detail later in this guide.

An important thing to note though is that transferring UK-based pensions abroad can have significant tax implications. These can sometimes be complex and costly, depending on the country you’re moving to and your personal circumstances.

So before you do anything, it could be a good idea to speak to a pensions or tax specialist to get some expert advice.

Which UK pensions are eligible for transfer to Switzerland?

You should be able to transfer many types of workplace or private pension from the UK to Switzerland.

This includes both defined contribution and defined benefit pension schemes, although the latter can be more complex and challenging to transfer overseas.

Some UK pensions can’t be transferred out of the country, such as UK state pensions for example. You will still be able to receive your state pension payments while living in Switzerland though, as long as you’re up-to-date with your National Insurance (NI) contributions.

All you’ll need to do is apply to the International Pension Centre within 4 months of your state pension age.¹

It’s not possible to transfer unfunded civil service pensions abroad either. This means that you may not be able to move this kind of pension if you’re a teacher, police officer or NHS worker.²

You’ll need to check the specific conditions of your pension though. Some, such as defined benefit schemes, can have restrictions on transfers.

How to transfer your UK pension to Switzerland - a step by step guide

Now, how do you actually go about transferring a pension from the UK to another country?

There are a few key steps involved, starting with checking that your pension is eligible for transfer. You’ll also need to find a suitable QROPS scheme in Switzerland, and then tackle the required paperwork.

We’ll run through these steps in more detail in just a moment. But first, some useful info on QROPS and how these schemes work.

Qualifying Recognised Overseas Pension Schemes (QROPS)

The most crucial part of transferring a UK pension overseas is finding a Qualifying Recognised Overseas Pension Scheme (QROPS). These are pension schemes that have been vetted and approved by HMRC, and which allow UK nationals to transfer their pensions when they move abroad.

Most UK pensions can only be moved to a QROPS, otherwise your UK pension provider may refuse to make the transfer. It may be possible to move your pension to a non-QROPS scheme, but you’ll face a whopping 40% tax bill on the transfer.³

It’s important to note though that transferring your pension to a QROPS in Switzerland may not mean you avoid tax charges altogether.

💡 Learn more: What is a QROPS?

Steps to transfer your pension

To help you get started, let’s take a step-by-step look at the process for transferring your pension from the UK to Switzerland:

1 - Find a QROPS scheme

Your first task will be to find a suitable QROPS in Switzerland. This is pretty easy to do, as you can simply check the recognised overseas pension schemes notification list here.

Sorted alphabetically by country, these are all the schemes that meet HMRC’s requirements to be a QROPS.

The good news is that Switzerland is on this list, and there are currently a couple of different QROPS to choose from - although the list is updated regularly.

2 - Check that your UK pension allows transfers

The next step is to make sure that your pension is eligible for overseas transfer. Contact your pension provider to make the relevant enquiries, and find out about any particular conditions or costs attached to your pension scheme.

There may also be tax implications you need to know about before setting up the transfer, so you should also seek professional advice at this stage.

3 - Submit the transfer application form

Once you’re armed with specialist advice and all the information you need, the final step is to apply for the transfer.

When you’re ready, you’ll need to download and complete Form APSS 263 from the UK Government website. This asks for information such as:

• Your personal details and National Insurance number
• Address and contact information for you in the UK (or your previous UK address if you’ve already moved)
• Details of the QROPS - including the name, address, country in which the scheme is established and regulated and its HMRC reference number
• Your employment details (if relevant).

This form needs to be submitted to your UK pension scheme administrator to start the transfer process.

It’s really important to check your form carefully before submitting it, and provide any extra information you’re asked for as quickly as possible.

If you fail to provide all the requested details within 60 days of submitting your form, your transfer will be taxed at 25% - whether or not you’re exempt from other taxes or charges.³

Timeframes and costs involved

How long it takes to transfer a UK pension overseas depends on a few different factors, such as:

• The complexity of your personal circumstances
• The efficiency of the pension providers involved in both countries
• How quickly you respond to requests for information

You’ll need to speak to your pension provider (and perhaps the QROPS provider in Switzerland too) to find out more about specific timeframes for the transfer to be completed.

In terms of costs, there is one main charge you need to know about. This is the overseas transfer charge of 25%.

If you’re living in the same country as the QROPS you’re transferring to - and you don’t leave for at least 5 years - you shouldn’t have to pay this.³

But it may apply if your transfer exceeds your overseas transfer allowance (OTA). This is currently set at £1,073,100, although it can differ in some circumstances. If you exceed your OTA, the 25% charge may be payable on the excess.³

Tax considerations of transferring your UK pension to Switzerland

Tax is never simple, and it can be even more complicated when you throw pensions into the mix. This is why it’s always a good idea to get some professional financial advice before transferring a pension to another country.

But generally, here’s what you need to know about tax when you move a UK pension to Switzerland.

If you’re living in the same country as the QROPS, you shouldn’t be liable for tax on the transfer. So if you’ve already moved to Switzerland and live there permanently, and transfer your UK pension to an Switzerland-based QROPS, you shouldn’t have to pay tax.³

However, there are still some tax implications you need to know about, depending on your circumstances.

For example, you may have to pay tax on your pension transfer to Switzerland if:

• You make a transfer that exceeds your overseas transfer allowance (OTA) of £1,073,100³
• You transfer your pension to a non-QROPS (which is usually not permitted, but still technically possible).

Save money on pension transfers to Switzerland with Wise

After reading this, you should have a better idea of how to transfer your UK pension to Switzerland. We’ve covered all the important points, including info on QROPS, transfer taxes, and the steps to get started.

But it’s also important to think about how you’ll actually receive your pension sum in Switzerland.

A key consideration is that your pension pot will need to be converted from British pounds (GBP) to Swiss francs (CHF).

If you use a local bank account, you could be stung by high currency conversion fees and poor exchange rates. As it’s likely to be a large amount you’re transferring, this could make a serious dent in your retirement funds.

Luckily, there’s a better solution available. Open a Wise account and you can manage your money in 40+ currencies, including GBP and CHF.

You can use it to send and receive money internationally, for low fees* and mid-market exchange rates.

This could be hugely useful for transferring your pension between countries, or even for receiving your UK state pension or other UK-based income while living in Switzerland.

Sign up with Wise today

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Sources used:

1. Blacktower Financial Management Group - Qualifying Recognised Overseas Pension Scheme (QROPS)
2. GOV.UK - State Pension if you retire abroad
3. GOV.UK - Transferring your pension

Sources last checked on date: 22-Jan-2025