The 3rd pillar Switzerland is a retirement savings solution that combines tax advantages and financial security, which is particularly interesting for cross-border workers. With Pillar 3a, you can deduct your contributions from your taxable income in Switzerland, thus reducing your taxes while saving for the future. In 2025, the contribution limits are set at CHF 7'258 for employees affiliated to a pension fund and to 20% of net income (max. CHF 36'288) for self-employed persons without a 2nd pillar. To benefit from it, you must opt for the Subsequent Ordinary Taxation (TOU), respecting specific deadlines and conditions.
3rd pillar funds can also be used to finance real estate or be withdrawn in the event of permanent departure from Switzerland. However, complex administrative procedures and tax rules apply, depending on your canton of work and your status as a quasi-resident. To optimize your contributions and avoid mistakes, it is recommended to use simulation tools or to consult a tax expert.
In summary: The 3rd pillar offers immediate tax reduction, tax-free growth and financial security for retirement, while adapting to the specific needs of cross-border workers.
Eligibility conditions for cross-border workers
Who can open a 3rd pillar account?
Cross-border workers working in Switzerland can access the Pillar 3a provided that the status of virtual resident is obtained. This status is essential to take advantage of subsequent ordinary taxation (TOU) and associated tax deductions. This rule applies to employees as well as to self-employed workers.
However, administrative procedures may vary from canton to canton. It is therefore advisable to contact the tax authorities in your canton of work to obtain precise information on the procedures to follow.
Now let's look at the contribution limits that govern these tax benefits.
Contribution limits and applicable rules
In 2025, the Contribution limits for pillar 3a are as follows :
- Employees affiliated to a pension fund : maximum contribution of CHF 7'258.
- Self-employed persons not affiliated to the 2nd pillar : possibility of contributing up to 20% of net income, with a ceiling set at CHF 36'288, without exceeding the effective annual income in Switzerland.
Contributions cannot exceed the annual income received in Switzerland. For example, a part-time cross-border worker earning CHF 50,000 per year can contribute up to CHF 7,056. On the other hand, if his annual salary is CHF 5,000, his maximum contribution will be limited to this amount.
Impact of tax residency status
To benefit from the deduction of contributions, cross-border workers must opt for the subsequent ordinary taxation (TOU). This involves completing a complete tax return in the canton where they work, as would a Swiss resident. This request must be made within a period of Three months after the end of the fiscal year.
Thanks to TOU, cross-border commuters benefit from the same tax deductions as Swiss residents. Contributions paid to pillar 3a are deductible from their taxable income in Switzerland, depending on their tax bracket.
How to claim tax deductions
Step-by-Step Deduction Process
To get your tax deductions, start by using the contribution certificate that your pillar 3a institution provided you with. This document is used to prove payments made during the previous calendar year.
If you have contributed to several 3a providers, each provider will give you a separate certificate. You will have to report each payment separately in your tax return and attach the corresponding certificates. Enter the amount indicated on each certificate in the “Deductions” or “Insurance and pension” section of your tax return.
Non-resident cross-border commuters who receive at least 90% of their income in Switzerland can, as semi-residents, choose to opt for Subsequent Ordinary Taxation each year.
Common mistakes to avoid
Once you have completed the process, be sure to avoid some common mistakes that could complicate your tax return.
- Keep your contribution certificates : Scan them as soon as you receive them. These documents are essential to justify your requests to the tax authorities.
- Respect the deadlines : Be sure to submit your regular taxation request by March 31. Quasi-residents must repeat this process every year.
- Report each contribution separately : Attach the corresponding certificate to each statement. If you forget, contact the tax authorities quickly to rectify the situation.
To simplify these procedures, you can use financial simulation tools, such as those offered by Best Third Pillar. These tools help you accurately calculate the optimal contributions based on your situation and provide you with personalized recommendations to maximize your tax savings.
By following these steps, you will integrate your tax deductions into a global strategy to reduce your taxes while preparing for retirement with confidence.
Tax benefits and other benefits
Tax advantages for cross-border commuters
The 3rd pillar offers cross-border workers interesting opportunities to reduce their taxes while strengthening their retirement planning. If you are a virtual resident, you can deduct your contributions from your taxable income, which directly reduces your annual tax burden. In addition, the capital accumulated under the 3rd pillar grows without being taxed, which amplifies the effect of compound interest. When withdrawing, separate taxation at a reduced rate applies, making this option even more attractive.
By choosing 3a solutions with titles, cross-border commuters can also aim for higher returns thanks to a long-term investment horizon, while continuing to benefit from the associated tax advantages.
But the benefits don't stop there. The 3rd pillar also offers additional benefits that deserve to be taken into account.
Additional benefits
In addition to tax savings, the 3rd pillar contributes to strengthening your financial security. It makes it possible to fill pension gaps and to ensure adequate income in retirement. Some products also include death and disability coverage, providing essential protection for your family.
Your funds can also be used as a contribution to the purchase of real estate. And if you decide to leave Switzerland permanently, pillar 3a gives you the opportunity to withdraw all of your funds, without waiting for retirement age.
Here is a table that summarizes the main benefits of the 3rd pillar:
Summary table
Thanks to these numerous advantages, the 3rd pillar is an ideal financial tool for cross-border workers. To maximize these benefits according to your personal situation, the simulators offered by Best Third Pillar help you accurately estimate the fiscal impact and potential gains of your savings.
Sbb-ITB-505FA4B
SVQ #44 - Is the 3rd pillar for cross-border commuters not always a good idea?
How to plan your 3rd pillar strategy
To get the most out of your 3rd pillar, it is essential to take a personalized approach and to review your plan regularly. As a cross-border worker, your unique tax situation requires an adapted strategy that maximizes tax benefits while effectively preparing you for retirement. Here are some key steps to get you started.
Use of financial analysis tools
Financial analysis tools, such as simulators, are an excellent starting point for evaluating the impact of your 3rd pillar contributions. These tools allow you to estimate your tax savings as well as the growth of your retirement capital. For example, Best Third Pillar offers a free simulation that calculates your tax savings and future capital based on your monthly contributions. For pillar 3a, the maximum contribution is currently 604 CHF per month.
However, simulators are no substitute for expert advice. A consultation with a specialist can make all the difference. These professionals look at your overall situation, compare different options, and recommend the products that best fit your needs. A free and personalized consultation can also help you choose between pillar 3a and 3b options, depending on your goals and investment horizon.
If you are still far from retirement, investing in solutions with securities can offer more attractive returns, while taking advantage of tax advantages. On the other hand, if retirement is approaching, a more cautious approach may be preferable to secure your earnings.
Updating your strategy
Your strategy should not remain static. It is crucial to reassess it every year, especially if your personal or professional situation changes (new job, salary increase, family change). Making these adjustments before the end of the fiscal year can optimize your deductions and ensure that your contributions remain in line with your goals.
Changes in tax laws, in Switzerland or France, can also influence your strategy. In these cases, it is often useful to consult an expert to adapt your approach and avoid costly mistakes.
Get professional help
La cross-border taxation can be complex, and this is where a specialized advisor becomes indispensable. As a cross-border worker, you are subject to specific tax rules which vary according to your status as a virtual resident and the tax agreements between Switzerland and your country of residence.
An expert in taxation for cross-border workers can help you optimize your tax deductions, choose the most suitable 3rd pillar product and plan your withdrawals in a tax-efficient manner. This expertise is particularly valuable in complex situations, such as a change in tax status or a permanent departure from Switzerland.
In addition to advising you, a professional can ensure regular follow-up. This includes annual reviews of your strategy, assistance with your tax returns, and transparency on the fees applied. This type of support ensures that your strategy remains effective and in line with legislative developments.
Calling on an expert becomes essential when you are uncertain about your choices, when your situation is complicated or when you want to maximize your tax savings. Good advice can often result in additional financial benefits and lasting peace of mind.
Conclusion: Secure your retirement and reduce your taxes
For cross-border workers, the 3rd pillar offers a valuable opportunity to combine retirement preparation with immediate tax benefits. As we have seen, this solution has advantages that it would be a shame to ignore.
Success is based on an approach adapted to your personal situation. Whether you choose pillar 3a, with a maximum annual contribution of CHF 7'258, or pillar 3b, which offers more flexibility, it is essential to act quickly to take full advantage of your contribution options.
Every year counts. Postponing your decision means giving up tax savings and potential retirement capital. To get started, start by using the free simulation tool offered by Best Third Pillar. This tool allows you to concretely visualize the impact of your contributions on your finances, by estimating your tax savings and the progress of your savings.
Professional support can make all the difference. Tax rules between Switzerland and your country of residence can be complex, and a free personalized consultation can help you avoid costly mistakes. Take the time to assess your needs, use the resources available to you, and don't hesitate to ask for expert advice. Your financial future starts to be built today.
FAQs
What are the tax advantages of pillar 3a for cross-border workers in Switzerland?
Cross-border workers working in Switzerland can take advantage of attractive tax advantages thanks to the Pillar 3a. This device allows them to deduct up to CHF 7'258 per year (for the year 2025) of their taxable income. This deduction can significantly ease their tax burden.
However, the amount deductible depends on the personal and professional situation of each individual. In addition to saving taxes, pillar 3a also offers an excellent opportunity to prepare for retirement while building up tax-optimized savings.
How can a cross-border worker take the necessary steps to take advantage of Subsequent Ordinary Taxation (TOU)?
To take advantage of the Subsequent Ordinary Taxation (TOU), it is essential to submit an application before March 31 of the year following tax collection. You have two options for doing this procedure: online via your e-tax procedures area or by mail.
The form DRIS/TOU must be completed carefully. You will need to include specific details about your situation, such as:
- Your family expenses
- Your spouse's income
- Tax deductions to which you are entitled
Remember to add any supporting documentation required to avoid any delay or possible denial of your application.
Finally, take the time to review the official tax guidelines. This will allow you to verify that your file is complete and meets the requirements. Careful preparation will help you optimize your tax benefits without complications.
What are the common mistakes to avoid in order to optimize tax savings thanks to pillar 3a?
To get the most out of your pillar 3a and reduce your taxes, it is crucial to avoid some common mistakes:
- Exceeding annual ceilings : Each year, deduction limits are set. These amounts differ depending on your professional status, whether you are employed or self-employed. Be careful not to exceed them to avoid tax complications.
- Do not report your contributions : If you forget to report your contributions in your tax return, they will not be taken into account for your deductions. Be sure to register them carefully each year.
- Poor payout sync : Waiting until the end of the year to make your contributions can be a problem. If the deadline is too short, your payments may not be taken into account for the current fiscal year.
By respecting these points, you can not only optimize your tax benefits, but also prepare for your retirement in a serene and effective way.
