How to Move Back Home from Switzerland Without Financial Pitfalls
Deregistration, health insurance, taxation, pillar 2 and 3a, family allowance, and Serafe — the financial steps of moving home for Hungarians, pitfalls included.
Why should returning home be treated as a financial project?
The Swiss system is highly decentralised: almost every important matter may differ by canton and even by municipality. As a result, returning home is not a single notification, but several parallel settlements.
The order matters. Many contracts, insurance policies and refunds can only be handled with an official deregistration certificate (Abmeldebestätigung). This is therefore the first step; everything else follows from it.
This article provides the financial framework of the process. Before making specific legal, tax or healthcare decisions, always check the current rules of the relevant canton and institution, as these change from year to year.
How and when should you deregister your Swiss residence?
A permanent departure must be reported to the municipal authority responsible for your place of residence (Einwohnerkontrolle), either in person or—where available—online via the eUmzug system. The availability of online administration varies by municipality.
You will receive a certificate of deregistration (Abmeldebestätigung). This document is crucial: without it, many contracts, insurance policies and subscriptions cannot be cancelled—or can only be cancelled with difficulty—as of the actual date of departure.
Practical consideration: the deregistration date simultaneously triggers the tax settlement, the end of health insurance coverage and the possibility of a refund of the Serafe fee (radio and television licence fee). The date is therefore not a formality, but the reference point for the entire financial closure.
Which contracts are affected by deregistration?
Mandatory health insurance (KVG) — written cancellation with the deregistration certificate.
Tax authority — final tax return for the year of departure.
Serafe AG — pro-rata refund of the radio and television licence fee.
Pillar 2 and 3a institutions — the decision on paying out or transferring the savings.
What happens to compulsory Swiss health insurance when moving back to Hungary?
Upon permanent departure, the obligation to hold compulsory Swiss health insurance (KVG-Versicherungspflicht) ends. The insurance does not end automatically — it must be cancelled in writing (Krankenkasse kündigen), and proof of deregistration must be enclosed with the cancellation.
The cancellation date is aligned with the official date of departure. It is therefore important for the deregistration certificate to be available in good time; otherwise, the insurer may continue to charge premiums.
An important exception applies to pensioners. According to the dossier, a Swiss pensioner moving from Switzerland to Hungary may generally remain subject to the Swiss insurance system if they do not receive a Hungarian pension. This is a complex EU coordination issue that must be clarified on an individual basis.
Hungarian perspective: reintegration into the Hungarian social security system (TB) must be arranged separately in order to access healthcare in Hungary. Cancelling Swiss insurance alone does not establish insured status in Hungary — it is advisable to handle the two steps in parallel to avoid any gap in coverage.
How can Swiss tax obligations be settled in the year of departure?
In the year of departure, a tax return must be filed for the part of the year that has elapsed, on the basis of which the tax authority calculates the final tax liability. This procedure is based on information provided by the City of Zürich; details may differ in other cantons.
If tax matters cannot be settled before departure, a Swiss-based tax representative (Steuervertretung) must be appointed. This person or firm handles the remaining administrative matters even after you are living in Hungary.
A common pitfall is that employees subject to withholding tax (Quellensteuer) believe that they have no further obligations. However, final settlement, refund claims and the resolution of outstanding items may also be necessary in withholding tax cases.
Hungarian perspective: the double taxation agreement between Hungary and Switzerland determines which state taxes which income. The Hungarian tax position after moving — including the Hungarian treatment of payments originating from Switzerland — is a separate matter that must also be clarified in Hungary.
Can capital from the second-pillar pension fund be withdrawn when moving to Hungary?
Partly. Under the second pillar (berufliche Vorsorge / BVG), a clear distinction must be made between the mandatory portion and the portion exceeding the statutory minimum.
The mandatory BVG portion (BVG-Altersguthaben) cannot be paid out in cash when moving to an EU/EFTA country if the person concerned is subject to compulsory state pension insurance in their new country of residence. As employment in Hungary entails compulsory state pension insurance, this restriction generally applies.
The portion exceeding the statutory minimum (überobligatorischer Teil), by contrast, may also be withdrawn in cash upon relocation. It is therefore essential to establish exactly how much your pension fund allocates to each of the two categories — it is advisable to request this information in writing.
What happens to the blocked mandatory portion?
The mandatory amount that cannot be paid out may be transferred to a vested benefits account (Freizügigkeitskonto). This amount is not lost; it is merely blocked.
According to the dossier, the mandatory amount held in a vested benefits account may be withdrawn at the earliest five years before retirement age. In other words, the capital remains intact, but access to it is significantly postponed.
This is the largest financial item for most people returning home. Separating the mandatory portion from the portion above the statutory minimum, and choosing the provider of the vested benefits account, can significantly affect the subsequent tax burden and access to the funds.
What happens to Pillar 3a savings, and what determines the withholding tax?
Pillar 3a savings (restricted private pension provision) can be withdrawn in full upon permanently leaving Switzerland. Unlike Pillar 2, there is no lock-up period.
However, the payout is subject to withholding tax (Quellensteuer) if it takes place after the Swiss residential address has been deregistered. The key rule is that the withholding tax rate is determined not by the previous place of residence, but by the registered seat of the foundation.
This creates an important planning opportunity. Since withholding tax varies by canton, what matters is the canton in which the Pillar 3a foundation holding the savings is based. According to the dossier, the most favourable withholding tax in the canton of Schwyz is no more than 4.8% — but this figure applies specifically to the canton of Schwyz and cannot be generalised to other cantons.
Pitfall: many people focus on the timing of the payout, even though the decisive factor is the foundation’s location. Switching foundations before leaving Switzerland (transferring Pillar 3a capital to a more favourable canton) may be a considered step, but it requires an individual assessment and is subject to deadlines.
Are Swiss family allowances available for a child living in Hungary?
In certain cases, yes. EU/EFTA nationals may be entitled to Swiss family allowances (Familienzulagen) for a child living in Hungary if the parent working in Switzerland is insured in Switzerland. Eligibility depends on the parent’s insurance status and employment relationship.
The order of priority depends on the parents’ employment. If both parents work, with one in Switzerland and the other in Hungary, then according to the dossier, the country where the child resides — Hungary — pays first. Switzerland typically only pays the difference if the Swiss benefit is higher.
In practice, three factors must therefore be considered together:
The parents’ employment — who works, where, and under what basis.
The parents’ insurance coverage — whether the parent working in Switzerland is insured in Switzerland.
The child’s place of residence — the country of residence may take priority if there is employment there.
From a Hungarian perspective, this is a typical situation where one parent returns to Hungary earlier with the child while the other continues working in Switzerland temporarily. Double payment is excluded; the system coordinates benefits and operates according to the principle of differential payments.
How can the pro rata portion of the Serafe fee be reclaimed?
The Serafe fee (radio and television fee, Serafe AG) may be refunded on a pro rata basis when leaving Switzerland. The municipality automatically reports the departure to Serafe, but this does not in itself result in an actual refund.
To receive the refund, it is also necessary to contact Serafe AG directly and provide bank details. In other words, the automatic data transfer alone does not initiate the transfer of the money back — an active step is required.
A point of reference for the future: Serafe’s household fee will be reduced to CHF 312 as of 1 January 2027. The pro rata refund applies to the period that was genuinely unused.
Sources
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xeniabern.ch — https://www.xeniabern.ch/index.php?p=de/ausreise-krankenkasse-kuendigen
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comparis.ch — https://www.comparis.ch/krankenkassen/system/schweizer-im-ausland
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vermoegenszentrum.ch — https://www.vermoegenszentrum.ch/vergleiche/quellensteuern-auf-vorsorgebezuegen
pens-expert.ch — https://pens-expert.ch/vorsorge/privatpersonen/freizuegigkeit-wegzug-ausland
ahv-iv.ch — https://www.ahv-iv.ch/p/6.08.d
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serafe.ch — https://www.serafe.ch/
ak-bs.ch — https://ak-bs.ch/media/iveggi0w/akbs_fak_mb_fuer-kinder-im-ausland_02-2024_web.pdf
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admin.ch (EDA – emigrating) —
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sz.ch (Guidance on withholding tax) —
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In Brief
It's best to start wrapping up your finances when moving from Switzerland to Hungary by obtaining the official deregistration confirmation (Abmeldebestätigung), since it is required for arranging several insurance policies, contracts, and refunds. Health insurance, taxation, the Serafe fee, and pillar 2 and 3a savings all need to be settled separately; the mandatory portion of pillar 2 generally cannot be withdrawn in cash, whereas pillar 3a can be paid out in full, subject to withholding tax.
Key Takeaways
- Report your final departure to the municipality (Einwohnerkontrolle) of your place of residence, and request the Abmeldebestätigung deregistration confirmation.
- Use the deregistration confirmation to cancel your KVG health insurance in writing, and simultaneously arrange your Hungarian social security (TB) status.
- Prepare your final tax return for the year of departure; if matters remain open, engage a Swiss tax representative.
- Request a written breakdown from your pension fund of the mandatory and extra-mandatory portions of your pillar 2.
- Before withdrawing your pillar 3a, check the foundation's registered seat, since this — not your former place of residence — determines the withholding tax rate.
- Contact Serafe AG directly regarding your refund and provide your bank details, since the municipal notification alone does not trigger the payment.
Frequently Asked Questions
What should be the first step when moving from Switzerland to Hungary?
Your final departure must be reported to the municipality of residence (Einwohnerkontrolle), either in person or via the eUmzug system where available in that municipality. The Abmeldebestätigung deregistration confirmation forms the basis for several further matters, such as cancelling insurance and certain refunds.
Does Swiss health insurance automatically end when you move back home?
No. Mandatory health insurance under the KVG must be cancelled in writing, and the cancellation must include the deregistration confirmation. Arranging your Hungarian social security (TB) status is a separate task from this.
Do you need to file a tax return in the year you move out?
A final tax settlement may be required for the portion of the departure year that has elapsed, even if you were previously a withholding-taxed employee. The detailed rules may vary by canton; if matters cannot be closed before departure, a Swiss tax representative can be engaged.
Can the full amount of pillar 2 be withdrawn when moving to Hungary?
Generally not. The mandatory BVG portion cannot be paid out in cash when moving to an EU/EFTA country if the person becomes subject to mandatory state pension insurance at their new place of residence. However, the portion above the mandatory minimum may be withdrawable, so it is advisable to request a written breakdown from the pension fund.
What happens to the mandatory portion of pillar 2 that cannot be paid out?
The mandatory amount can be transferred to a vested benefits account (Freizügigkeitskonto). The capital is not lost, but according to the file, it can be withdrawn at the earliest five years before the statutory retirement age.
Can pillar 3a savings be withdrawn when moving back home?
Yes, upon final departure from Switzerland, pillar 3a savings can be withdrawn in full, without the kind of restriction that applies to pillar 2. The payout may be subject to withholding tax, the rate of which is determined by the canton where the foundation has its registered seat.
How can the Serafe fee be reclaimed?
The municipality automatically reports the departure to Serafe AG, but this alone does not trigger the refund. To receive the refund, you must contact Serafe AG directly and provide your bank details.
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