Pillar 3a is a good way to lower your taxes while setting aside for your retirement in Switzerland. By putting money into it, you can remove these amounts from your taxed income, which reduces your taxes. Here are the keys:
- 2025 limits : Up to CHF 7,258/year for those with a job who have a pension fund (2nd pillar), and CHF 36,288 or 20% of net income for solo workers.
- Tax gains right away : Lower income taxes for federal, cantonal, and local.
- Who can benefit : People with a job, solo, cross-border workers with a G license, and those who work after retirement age up to 5 years older.
- Rules to follow : Put the money before December 31 within the limits of the laws. Too much is not deducted.
Concrete example
An employee earning CHF 80,000/year and putting CHF 7,258 into pillar 3a will only pay taxes on CHF 72,742, which saves him a lot depending on his tax rate.
Tools to better save
- Free online estimator : Find your tax earnings according to your income, canton and job.
- Tailor-made aids : Pros can help you make the most of your situation.
- Appointments every year : Adjust what you put in according to the laws or your finances.
By choosing pillar 3a, you are preparing for tomorrow while cutting your taxes today. Start by looking at your possible earnings and plan your bets before the end of the year.
What tax savings do we achieve with a 3rd pillar A?
Contribution limits and rules
To earn Pillar 3a tax bonuses, you have to follow clear limits and rules. These standards say how much you can get out of your taxes and what you need to do to do that. Let's take a look at the contribution limits and the rules to follow.
Max contributions per year
The amount you can put into pillar 3a changes with your job. In 2025, if you have a job and are in a pension fund (2nd pillar), you can put a maximum of CHF 7,258 each year. You can subtract this amount from your income for taxes.
For those who work for them without a pension fund, the max is CHF 36,288 or 20% of your net income, taking the smaller of the two. Putting more than these limits will not be tax deducted.
As said by Finpension :
“You can't deduct more than this maximum amount from your taxes.”
Basically, anything that's extra gets stuck and doesn't give you any tax gain. The Poor Swiss also says:
“Since there are no tax benefits, you should never put more than the maximum per year into your third pillar. It is not interesting to lock money without advantages.”
To properly manage your payments, you can choose to divide the total for the year into 12 months. For example, in 2025, that would be nearly 604.83 CHF each month.
Rules for cutting off your payments
You must follow the rules to properly cut your taxes. You only need to put your payments into a pillar 3a account. If you have other accounts, anything you put in should not exceed the annual maximum.
Only earnings where AHV contributions are paid can go into your pillar 3a. This includes salary, earnings as a solo worker, and some other earnings, such as money when you don't have a job or daily payments.
Your payments must be put into your pillar 3a account before December 31 to be counted for the tax year, they must appear on your pillar 3a account before this date.
Some who manage pillar 3a accounts automatically stop overpayments. And keep your proof of payment, you'll need it to show your cuts when you file your taxes.
How to see your tax earnings: three easy steps
Here is a clear path to change what you set aside with pillar 3a into less taxes to pay. Whether you're working for someone else or self-employed, these three steps will help.
Step 1: Put your money info together
Start with the stuff you need: what you earn in the year (paycheck for those with a boss or account info for others) and your work. That says how much you can put into pillar 3a.
Take a look at your home life as well. If you are alone or with someone, how many children, your age, and where you live affect your taxes a lot. Rates change from place to place. Finally, write down how much you put into your pillar 3a account this year.
When you have all that, you can go to the next step: take off what you put on.
Step 2: Remove your pillar 3a bets
Now, take away what you set aside in pillar 3a from what you have to pay in taxes. This reduces what your taxes are calculated on.
A simple case: if you earn CHF 80,000 in the year and put in CHF 7,258, you have to pay taxes on CHF 72,742. We use this figure for your federal, cantonal and local taxes. But keep in mind not to put in more than what is allowed, because the extra doesn't take away anything.
This sets the foundation for estimating your earnings.
Step 3: See your tax gains
To see your earnings, take your tax rate and put it on the difference between what you earn at the start and after taking away what you set aside. But because tax rules change from place to place and are complex, there's no one way to calculate.
To keep things simple, you can use an online tax calculator. These grants take everything into account and quickly give you an idea of how much you are saving.
Keep in mind that what you win changes with a lot of things. In general, the more you win, the more setting aside helps with this system where the more you win, the more you pay. In the following, we will see other aids to refine your calculations.
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Rules for those who come from other countries for work and those who live elsewhere
In Switzerland, how you pay taxes for pillar 3a changes if you come for work or if you live elsewhere. These details include how you can lower what you pay in taxes, depending on where you live and tax agreements.
Rules for those who come from other countries for work
If you come to Switzerland for work but live in another country, you can often lower what you pay in Swiss taxes with your pillar 3a payments. But, the agreements to avoid paying taxes twice between Switzerland and your country touch this.
Countries like France, Germany, Italy or Austria have agreements with Switzerland. These agreements say where and how your money is taxed and how tax cuts are applied. For example, someone living in France and working in Geneva pays taxes on their salary in Switzerland, but must also declare these pennies in France.
Here, the fall in payments to pillar 3a First, lower your Swiss taxes, which reduces what you owe in Switzerland. But, it may change the taxes in your country. Each case depends on the tax agreement.
Some places in Switzerland, such as Geneva or Basel, have agreements with nearby areas, which may affect your tax cuts. It is therefore key to know the rules in your region and country well.
What to do if you live in Switzerland but come from elsewhere
If you live in Switzerland but come from elsewhere, you need to do more to lower your taxes with pillar 3a. Each year, show a piece of paper from your bank or insurance company with your Swiss tax return. Without this paper, we can't accept your tax cut. It is key to keep these papers well.
For people who are taxed at source, tell your employer about your pillar 3a payments. Give him a copy of your paper at the beginning of the year to properly adjust the taxes. This prevents you from paying too much tax during the year.
If you leave Switzerland, a departure tax will be applied to your pillar 3a. The rate of this tax changes depending on the region and the amount taken. Some countries have agreements with Switzerland to reduce this exit tax. Before leaving, check the tax rules between your new country and Switzerland. It could save you a lot of money when you take your savings.
Tools and services Top Third Pillar
Make your steps easier and lower your taxes with the simple tools and services provided by Top Third Pillar. With these no-cost, easy-to-use options, you can see how much you're saving on your taxes and adjust your money plan with ease.
Free calculator to save on taxes
Use the free online calculator to see how much putting into pillar 3a can cut your taxes. This tool counts things like how much you earn per year, whether you work for yourself or someone else, your age, and the canton where you live.
It shows you not just how much you'll earn in taxes right away, but also how your saved money can grow over the long term. You can try various amounts — up to the legal cut of 604.83 CHF per month — and quickly see their effect on your taxes by viewing them in real time. For example, putting 7,056 CHF per year, with a tax cut on the verge of 25%, could save you nearly 1,764 CHF on your taxes.
Money advice for you
Beyond experimenting, get money advice that's made just for you. Since each slot plan is unique, Top Third Pillar gives free talks with pros who see your type to guide you to the best plan. These free professionals work with major banks and insurers in Switzerland, promised to give fair and good advice for your goals.
When you talk, the pro looks at where you are with taxes, what you want to come up with, and what you care about. For those who live near the border or not from Switzerland, there are also double tax pacts and rules of your type.
Annual strategy meetings
As your income and tax laws change, you should always revisit your retirement plan. An appointment every year lets you put your savings according to what you earn or the new laws. These changes are key to keeping a fair mix of money and getting the most out of your earnings.
This help also comes with help for your tax form. Your professional ensures that you have all the necessary documents and that your tax cuts are well spent, to fully enjoy the tax gains of pillar 3a.
These tools and services go well with advanced information on saving on taxes, letting you adjust your plan from year to year to make the best use of it.
Dossier: Your steps to pay less in taxes with the 3rd pillar
Here is a brief summary of the key actions to take advantage of the tax gains offered by the 3rd pillar.
Start by seeing how much you could keep with the 3rd pillar. This plan helps you cut your taxes while preparing for the end of your job. If you work for a company, direct cuts can greatly reduce what you owe in taxes, depending on your tax schedule. This method must be reviewed every year to work well and meet your needs.
For the border workers And the foreigners living here, bi-country agreements set separate rules. These rules still allow significant tax bonuses to be won.
The tools of Best Third Pillar make your actions easier. Their web tool takes into account points such as where you live, your personal situation and your job to accurately say how much you will save in taxes. In addition, meetings without paying with their pros guide you to adjust your plan according to your goals for when you stop working.
Managing your taxes requires monitoring this closely. Your money can change, so do the tax rules, and what you want for later becomes clear over time. Having meetings every year helps keep your plan fresh and get the most out of the tax system.
So, start today: test the free tool to quickly get an idea of how much you will save. Then set a time to discuss it in detail. With the right tools and tailor-made advice, the 3rd pillar is a solid way to pay less taxes while ensuring your old age. One update per year ensures that everything stays in line with your plans.
FAQs
How can I lower my taxes with pillar 3a as a self-employed person in Switzerland?
In Switzerland, if you work for yourself, pillar 3a is a good way to lower your taxes. You can put up to 20% of what you earn each year, but no more than 36,288 CHF (in 2025). To get the most out of this plan, it's wise to set the highest amount each year.
If you start saving money young, you're not just lowering what you pay in taxes, but you also benefit from your investments that are growing. It's smart to prepare for the days when you no longer work while keeping more of your money tax-free.
What are the advantages of paying pillar 3a for people near Switzerland with a double tax pact?
People who pay pillar 3a and live in a country that agrees with Switzerland to stop double taxation often earn more against double taxation. Their earnings from Switzerland are taxed just in the country where they live.
These amounts due must be said in the country where you live, where they can give More fiscal or free ones, depending on the tax laws there. To get the best of these plus, it's good to see a tax aide who can adjust the advice for your case.
