Schweiz- Suisse - Switzerland

Swiss Fixed annuity Plan

A Swiss fixed annuity has all the features one could wish for in a long-term investment. The investor benefits from a life income guarantee once the income option is chosen. It is therefore a savings plan and a pension fund all in one. Fixed annuities issued by a swiss insurance company, are primarily for those who do not want to take risks on losing their deposits.

Fixed annuities, guarantee a minimum fixed rate, while holding the capital. The insurance company guarantees a periodic payments for lifetime or for a fixed term. You may chose when you want to receive payments, either immediately or after some time frame (deferred annuity).

The safety and security of Switzerland have been for generations of investors seeking financial refuge.

There are 2 types of swiss fixed annuity plans

  1. Immediate annuity (ideal for retirement income for senior citizens)
  2. Deferred Annuity (ideal for accumulated growth)

and the policy duration can be `fixed term` or `lifetime`. The significant advantage of lifetime option, is the insurance company will continue to make payments, even after the depletion of initial deposit. You may wish to accumulate earnings and prefer to receive periodic payments after certain number of years.

Update: Immediate and deferred swiss annuities are not available for Americans. We are only able to serve clients outside US

Immediate Annuity

Immediate annuity - most commonly known as retirement income annuity, are the most preferred option among senior citizens to receive their retirement income, almost immediately after paying the premium to the insurance company. You may chose a with or without refund option if you are planning on taking lifetime payments, as this contributes significantly to your earnings.

With Refund Without Refund
Average lifetime income. Gives maximum lifetime income
Incase of sudden death, the outstanding amount minus payments made, is paid out to the beneficiaries Incase of sudden death, contract cannot be cancelled and the insurance company makes no refund.

** Please note that `without refund` option is only possible with lifetime annuities. As of fixed term annuity `with refund` is always written in the contract, just to avail the death benefits.

Deferred Annuity

With deferred annuity, you chose when you want to receive payments, for a specific fixed term. For example, you want to invest USD 100'000 as premium now and want to receive your income after 10 years. During the accumulation stage, the principal grows with compounded interest including dividends plus currency gains. This works best if you have a future planning like education for grandchildren, income for your wife or parents after certain number of years. If you want to cancel the annuity, it is recommended to `with refund` option written in the contract.

To start with a swiss fixed annuity, first pick your choice

  1. Immediate or deferred annuity
  2. Select policy duration to be lifetime income or fixed term income
  3. Select your currency choice CHF/EUR/USD/other
  4. Name your beneficiaries (revocable or irrevocable)
  5. Name your insured person (single or joint)
  6. Setup your annuity contract with or without refund

Please note that naming a beneficiary can be revocable or irrevocable.

We can send you free proposal quote, necessary brochures and application forms by email or by postal mail.

Should you have further questions please contact us


Swiss insurance companies are not allowed to report the purchase of an annuity certificate to anyone, private persons or government authorities. This means that the purchaser is solely obliged to report and pay taxes.

Asset Protection

Swiss fixed annuities can be used as an `asset protection vehicle`, if you have named the beneficiaries as irrevocable. As per article 80/81 of the swiss insurance law, the annuity is safeguarded against debt-collection or creditors or bankruptcy proceedings from a foreign country.

Guaranteed life income

You may choose to receive an income for life which ensures that you will receive payments for your entire life, even if your principal investment is depleted. In case of death prior to depletion, the residual value in your annuity
is paid to the beneficiaries.

No Swiss taxes

Your annuity investment is completely free from Swiss taxes.

Currency convertibility

Swiss annuities are available in Swiss francs (CHF), U.S. dollars (USD) or the new European currency, euros (EUR). You choose the denomination of your annuity, retaining the right to switch currencies at any time during the accumulation period. Therefore, you have the flexibility to adjust your currency allocation according to longterm currency trends.

For US Citizens

The information below may not be interpreted as legal or tax advice before making an investment decision. We do not provide legal, tax advice to our clients. Please consult your tax expert in your country for more information.

If you are a US citizen, the following below may apply to you.

1035 Tax free exchange

It is possible to 1035 tax free exchange from your existing US policy to a swiss annuity.

IRA Rollover to Swiss annuity

It is possible to purchase a swiss annuity and can be held within your IRA on certain conditions. It can also be from a Keogh plan, corporate plan or 401k plan from a US custodian (bank or institution) qualifying for such plan.

US Excise Tax

IRS requires you to file Form 720 for 1% excise tax (which is 1% of premium paid) if you buy a foreign held annuities. But the recent tax treaty with switzerland eliminates this tax. But Form 8833 Treaty-Based Return Position Disclosure Form has to be filed to claim the treaty benefits. The excise tax is not exempt for annuity contracts purchased from insurance companies in Liechtenstein.

US Tax Deferral

Swiss fixed annuities DOES NOT qualify for tax deferral because it guarantees to pay certain sum (debt instrument). The swiss annuity contracts are treated like any other US annuities, in which case interest and dividends on U.S. annuities are tax-sheltered until withdrawn, while swiss fixed annuities are taxable each year as ordinary income. If you want, the insurance company in switzerland will give you yearly statement on earnings and interest accrued to file your taxes. Please consult the tax advisor in your country.

When should I convert my US dollars into Swiss francs?

you should buy when the price is low, that is, use any temporary period of weakness in the franc to convert your dollars. Or you can purchase a Swiss annuity certificate in US dollars and wait until it's the best time for you before switching into francs. Just remember, with a long holding period, the long-term trends are what count. Better yet, buy a series of equally-valued certificates in dollars and convert them into Swiss francs at regular intervals. In volatile markets, dollar cost averaging ensures that you never pay peak prices.

What happens if I die before recovering my investment?

If you are the insured person, and upon death the surrender value of the contract is paid immediately to your designated beneficiary. It should be claimed by the beneficiary, upon presenting original policy and death certificate. Incase of joint annuity, the insurance company will continue to pay the income until the death of surviving annuitant.

What options i have for naming the beneficiary?

A beneficiary is the legal entity or person who gets the benefit of the policy. You can name the beneficiary revocable or irrevocable and name them separately in case of death or survival and for receiving benefits.

For more information please refer our Frequently Asked Questions (FAQ) section

IRS Tax Treatment

* The information published below is only indicative and may not be accurate due to frequent change in tax laws in US and other countries. We ask you to consult a tax expert in your home country for professional advice with regard to filing taxes. We do not provide legal, tax advice to our clients.

  U.S annuities Swiss Fixed Annuities*
Earnings during
accumulation phase
tax-deferred taxable
Partial withdrawals taxable tax-free
Full liquidations taxable taxable
Annuity payments taxable taxable
Premature withdrawals
pre-age 59 1/2)
with penalties
no penalties
Loans taxable
with penalties
no penalties
Loan interest never
can be
*Applicable to fixed annuities only

Here is the detailed overview of the annuity we offer.


Insurance Company Swiss Insurance Company
Type Immediate or Lifetime
Investment Minimum USD 50'000
Multicurrency choice • CHF - Swiss franc
• EUR - Euro
• USD - US dollar
• GBP - British pound
• NOK - Norwegian Krone
• CAD - Canadian dollar
• AUD - Australian dollar
• NZD - New Zealand dollar
Add on minimum CHF 20'000
Policy Holder/Beneficiary Legal entities or natural persons
Insured person Natural person only (can be joint persons)
Loans yes, upto 80% of policy value
Early withdrawal penalties variable - depending on the insurance company
Partial withdrawals no
Loans yes
Life Income possible yes
Asset Protection yes
Currency switch Yes - It is either free or usually CHF 300 + 0.4% of the policy value (depends on insurance company)
Term/Deferment period 5 yrs minimum

Target Investment return*


Technical interest rate 1.75% for CHF (as defined per FINMA)
+ surplus participation + currency gains

The insurance company will take into account a number of variables like insured persons age, sex, policy duration and others factors involved

Other costs and fees see quote
Guaranteed fixed interest/return yes
Capital guaranteed yes
Annuity Cancellation No - Annuity designated as without refund
Yes - Other Annuities
Max age at purchase no limit
Mail Retaining Available as your agent (to hold all your correspondence letters in switzerland)

We can send you free proposal quote, necessary brochures and application forms by email or by postal mail.

Should you have further, questions please contact us


For more information please refer our Frequently Asked Questions(FAQ's) section. Should you have any questions of general category, please do not hesitate to Contact Us.