AVS, French retirement and real estate ownership in the Pays de Gex: the complete guide

The AVS (Old Age and Survivors' Insurance) is the first pillar. It is a compulsory, universal pay-as-you-go system managed by the Swiss state, whose objective is to guarantee a minimum income for all pensioners. As soon as you have a job in Switzerland, you automatically contribute to it, whether you are a Swiss resident or a French cross-border worker.

The overall AVS/IV/APG contribution rate is 10.6% of the gross salary, shared between the employer and the employee. There is a ceiling on the salary subject to contributions, set at CHF 148,200 per year in 2026 — beyond that, contributions no longer apply to the excess portion for certain components.

The amount of your pension depends on two factors: the number of years of contributions and the average income received over your entire career. To obtain a full and maximum pension, you must have contributed for 44 consecutive years (from 21 to 64 years old) and have received an average annual salary of at least CHF 88,200. The monthly pension for a single person is therefore between CHF 1,225 (minimum) and CHF 2,450 (maximum) in 2026. For a couple where both spouses have contributed, the cumulative pension is capped at 150% of the maximum individual pension, i.e. CHF 3,675 per month.

Good news for future retirees: from December 2026, a 13th AVS pension will be paid out annually. This measure, adopted by popular vote in March 2024, represents an increase of 8.33% in the annual amount of pensions and also applies to former French cross-border workers now residing in France.

The LPP (Occupational Pension Act) is the second pillar. It is mandatory for all employees with an annual income of more than CHF 22,050 and is financed jointly by the employer and the employee. It is a funded scheme : your savings accumulate in an individual account managed by your employer's pension fund.

This is often the most substantial pillar for cross-border commuters with high Swiss incomes. It is designed to maintain your standard of living after retirement, and offers remarkable flexibility : it can be received in the form of a monthly annuity or a single lump sum, and — this is where it becomes interesting for real estate — it can be released early under certain conditions.

The third pillar is an individual and optional pension plan . Pillar 3a (known as "tied") has strong tax advantages: contributions are deductible from taxable income in Switzerland, up to an annual ceiling (CHF 7,056 in 2025 for employees). Please note: this deductibility is only available to cross-border workers provided that they have the status of quasi-tax resident in Geneva or in the canton concerned. The funds remain blocked until retirement, except for certain specific projects including the purchase of real estate.

Since the AVS 21 reform, which has been in force since 1 January 2024, the legal retirement age in Switzerland has been set at 65 for both men and women. It is possible to bring forward this retirement by one or two years (i.e. to 63 or 64 years of age), but the pension will be reduced proportionately for the entire retirement period. Conversely, it is possible to postpone up to 5 years to benefit from an increased pension.

On the French side, the legal age is now 64 following the 2023 pension reform.

This is where many cross-border workers get lost in the process. Rest assured: thanks to the bilateral agreements between France and Switzerland (and more broadly to European Regulation 883/2004), the procedures are coordinated.

As a cross-border worker living in France, you submit your application to the CARSAT (Caisse d'Assurance Retraite et de la Santé au Travail) in your department — and not directly to the Swiss funds. CARSAT draws up a European liaison form (type E202) which it then forwards to the competent Swiss Compensation Office. The latter calculates your rights by taking into account all your years of contribution in Switzerland.

The recommended deadline for submission is at least 6 months before the desired departure date. In some cases, for mixed careers involving several employers and several funds, it is advisable to anticipate even more.

Swiss law allows the early withdrawal of all or part of the LPP capital to finance the acquisition of one's main residence. This mechanism, called EPL (Encouragement à la propriété du logement), is open to cross-border workers for the purchase of a property located in France, provided that this property is your main residence — second homes and rental investments are excluded.

The minimum withdrawal amount is CHF 20,000. Under the age of 50, you can in principle withdraw your available vested benefits in full. After the age of 50, the withdrawal is capped at the higher of your LPP assets at the age of 50 and half of the assets available at the time of application. In addition, two successive withdrawals can only be made with a minimum period of 5 years between them.

Instead of withdrawing the money, it is possible to "pledge" your LPP assets with a credit institution. In concrete terms, you use your capital as collateral to obtain better financing conditions, without the funds leaving the pension fund. The advantage is to preserve your retirement capital; The downside is that your mortgage debt remains intact.

French banks generally require a personal contribution of 10 to 20% of the price of the property. The capital from the BVG release is considered to be a contribution, which significantly increases the borrowing capacity of cross-border commuters. Be careful, however: FINMA (Swiss Market Supervisory Authority) regulations specify that 10% of the price of the property must be financed by "real equity" – i.e. outside the 2nd pillar. Notary fees (around 7 to 8% in France) cannot be financed by the LPP and must be provided for separately.

For a cross-border worker residing in France and taxed in France, the early withdrawal from the 2nd pillar is subject to French tax. Thanks to the Franco-Swiss tax treaty, this capital benefits from advantageous tax treatment: the tax rate is 6.75% of the total amount repatriated. This preferential rate applies because this income qualifies as "exceptional income".

A Swiss deduction is made at source at the time of payment. If you are taxed in France, you can in principle obtain a refund of this Swiss source tax, provided that you present proof of payment in France — you must apply for it within 3 years from the tax authorities of the canton concerned.

Also beware of social security contributions in France: if you depend on the general social security system, social charges are added to the tax on the capital withdrawn. If you are affiliated to the cross-border CMU (CNTFS), an additional levy of 8% of net income may apply.

The unlocking process usually takes between 1 and 2 months. Your pension fund will ask you for a signed promise of sale or agreement, a financing plan, notarized receipts and, if applicable, your spouse's written consent if you are married or in a civil partnership. This period must be anticipated before the date of signature at the notary's office.