Here's something that surprises many new arrivals: Switzerland actually gives you a straightforward way to pay less tax. Pillar 3a is a voluntary private pension savings account, and every franc you put in is fully deductible from your taxable income. If you do nothing else on this list, open a 3a account. It's the single easiest way to reduce your tax bill in Switzerland.
How much can I contribute?
For 2025 and 2026, employees with a Pillar 2 pension fund can contribute up to CHF 7,258 per year. Self-employed people without a Pillar 2 pension can contribute up to 20% of their net income, with a maximum of CHF 36,288.
The tax savings are real and immediate. Depending on your canton and income, contributing the full CHF 7,258 can save you roughly CHF 1,500 to CHF 2,500 in taxes every year. That's money back in your pocket.
New from 2026: if you missed contributions in previous years (going back to 2025), you can now make retroactive top-up payments of up to CHF 7,258 per missed year, on top of your current-year contribution. This is a big deal if you arrived in Switzerland recently and didn't open a 3a right away.
Where should I open a 3a?
You have two main options: a traditional bank 3a account (basically a savings account with a low interest rate) or an investment-focused 3a app.
For most expats, an investment-focused provider like Finpension or VIAC is the better choice. They invest your savings in globally diversified index funds (ETFs), which historically outperform bank savings accounts significantly over the long term. Both charge low fees — around 0.39% to 0.41% per year — compared to 1% or more at traditional banks.
You can invest up to 99% in equities with either provider. Setting up takes about 10 minutes on your phone. Both are regulated Swiss financial institutions.
When can I access the money?
Pillar 3a money is locked up — that's the trade-off for the tax break. You can withdraw it starting 5 years before your official retirement age (65 for men; for women, it's rising gradually to 65 by 2028 under the AHV 21 reform).
However, there are several situations where you can access the money early:
- You're buying your primary home in Switzerland (purchase, construction, or mortgage repayment)
- You're leaving Switzerland permanently
- You're becoming self-employed and leaving your pension fund
- You're buying into your Pillar 2 pension fund
- You receive a full disability pension
For most expats, the "leaving Switzerland" option is the most relevant — if you move away, you can cash out your entire 3a balance. A withholding tax applies at withdrawal, but it's a fraction of what you saved in deductions over the years.
Pro tip: open multiple accounts
You're allowed to have up to five Pillar 3a accounts. Why would you want more than one? Because when you withdraw, you must close the entire account at once — you can't take out a partial amount. By splitting your savings across two or three accounts, you can stagger withdrawals across different tax years and reduce the tax hit at retirement. It's a simple trick that can save you thousands of francs.