Getting RAV money as lump sum, and leaving CH

Hello.
I have recently heard about a person who had an interesting case, and I’m curious if someone encountered the same.
He lost is job at age 55 , which allowed him to have 2 years on RAV.
He negotiated his RAV to get these two years money as a lamp-sum (i.e. 24 salaries), and in return he agreed to give his C permit and leave switzerland.
The rational - his chance to find a job was pretty low, and after 2 years he will start pulling social funds. The authorities found it more appealing to get his permit and “outsource” this problem to another country.
Have you heard about a similar case?

Thanks!

Hi.

No, and it sounds a bit unusual for one specific reason: income taxes.

Assuming this person being a EU citizen, 2 years of 70% income from Switzerland in a single payment put him in a high tax bracket. 40-50% tax? So, why?

As a citizen of a 3rd country, 2 years of income at 70% + whatever is saved on 1st and 2nd retirement pillars. Now, that’s a significant amount of money that will make you a target for tax authorities.

So, let’s assume RAV made a lump-sum payment for 24 months of income, but…what was his tax minimization strategy? This knowledge is gold.

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Well sounds like some gossip, getting social help is not some walk in a park even if he does fail to find a job after 2 years, all his assets will be taken and you still have to go through all obstacles for many months before you see anything, so it is more burden and trouble for him then authorities, and considering that he gave up permit and moved he would have given up anyway and moved once left on 1500 chf per month here, so don’t find logic in this…

It does sound improbable because the money from the RAV is intended as an insurance based on the recipient doing everything in their power to get back into work. I know there are some allowances and easing for people closer to retirement age but it’s unlikely that the state will subsidise someone’s income outright for the maximum payment window while they go abroad.

By all means, ask at the RAV and see what they say but it would be very interesting to find out if that is indeed possible.

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It sounds very doubtful… as the funding comes from two different sources and I doubt the RAV would be too concerned about community funds…

True.
I’m not saying that the RAV did the payment. It’s the idea to leave CH (and avoid social burden) and in return get the unemployment funds.

If you’re unemployed and move to an EU country you can fill out form U2 and request 3 months of RAV payments while living abroad. The catch is that you’ll have to register with the EU country’s unemployment office.

More info here: https://sozialversicherungen.admin.ch/de/d/16089/download

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