Pillar 3a Switzerland: Complete Expat Guide (2025)

Here's the best financial advice for expats in Switzerland:

Max out your Pillar 3a. Every year. No exceptions.

It's a tax-advantaged retirement account where you contribute up to CHF 7,056/year (for employed people in 2024/2025), and that entire amount gets deducted from your taxable income. At a 35% marginal tax rate, that's CHF 2,470 in tax savings. Real money. Every year.

What Is Pillar 3a?

Switzerland has a three-pillar pension system:

The 3rd pillar is optional. But it's the smartest money move you can make in Switzerland because of the tax deduction.

How Much Can You Save in Taxes?

The math is simple:

2024/2025 Maximum Contribution:

• Employed people with pension fund: CHF 7,056/year
• Self-employed without pension: CHF 35,280 (20% of income, max)

Example: Let's say you earn CHF 100,000 and are in the ~30% marginal tax bracket.

• Maximum contribution: CHF 7,056
• Tax savings: CHF 7,056 × 30% = CHF 2,117/year

If you invest that contribution wisely, over 30 years it could grow to CHF 400,000+ (assuming 5% returns).

💡 Pro Tip: The deduction comes off your highest-taxed income (marginal rate). Higher earners save more percentage-wise.

Best 3a Providers Compared

Not all 3a accounts are the same. Old bank accounts often pay 0.5% interest and charge high fees. Modern providers invest in low-cost ETFs and compound properly.

My recommendation: VIAC or Finpension. Both are excellent, low-cost, and easy to use in English. They invest your money in global ETFs instead of letting it sit in a 0.5% savings account.

When Can You Withdraw?

Pillar 3a is meant for retirement. But you can access it early in specific situations:

Early withdrawal allowed:

• ✅ Buying your first home (or paying off mortgage)
• ✅ Starting a business (becoming self-employed)
• ✅ Leaving Switzerland permanently
• ✅ Retiring (5 years before official retirement age)
• ✅ Becoming permanently disabled

When you withdraw:

• You pay a one-time tax (lower than income tax, usually 5-10%)
• The entire balance is paid out

⚠️ Watch Out: Don't plan to use 3a as a savings account. The early withdrawal tax still applies, and you lose the compounding benefit.

How to Open a 3a Account

Step 1: Choose a provider (VIAC, Finpension, or your bank)

Step 2: Download their app or visit website

Step 3: Verify identity (usually takes 1-2 days)

Step 4: Set up automatic monthly contributions

Step 5: Get your tax certificate at year-end

That's it. Most modern providers have you set up in 10 minutes.

5 Pillar 3a Mistakes to Avoid

Mistake 1: Not Starting Immediately

Every month you delay is money lost. The contribution limit doesn't roll over. If you don't contribute CHF 7,056 this year, that opportunity is gone forever.

Mistake 2: Leaving Money in Savings

Traditional bank 3a accounts pay 0.5-1% interest. Inflation is 1-2%. You're losing money in real terms.

Modern providers invest in ETFs averaging 5-7% long-term. The difference compounds massively over 20-30 years.

Mistake 3: Only Opening One Account

You can have up to 5 different 3a accounts. Why? When you withdraw at retirement, each account is taxed separately. Staggering withdrawals over 5 years means lower tax rates on each withdrawal.

Mistake 4: Forgetting the Deadline

You must contribute by December 31 of each year. The money needs to be in the account, not just transferred. Don't wait until December 30.

Mistake 5: Not Getting the Tax Certificate

Your provider sends a certificate in January. You need this for your tax return. Without it, you can't claim the deduction.

Pillar 3a for Expats: Special Considerations

If You Leave Switzerland

You can withdraw your 3a when you permanently leave Switzerland. The tax rate is typically 5-10% depending on the canton where the 3a is domiciled.

Tip: Some cantons have lower withdrawal taxes than others. Schwyz is famous for low rates. If you're planning to leave, consider where your 3a is registered.

If You're Here Temporarily

Even for 2-3 years, Pillar 3a is worth it. The tax deduction each year outweighs the withdrawal tax when you leave.

Example:

• 3 years × CHF 7,056 = CHF 21,168 contributed
• Tax savings: ~CHF 6,000 over 3 years
• Withdrawal tax when leaving: ~CHF 1,000
• Net benefit: ~CHF 5,000

Conclusion: Your Action Plan

1. Open an account today – VIAC or Finpension takes 10 minutes
2. Set up automatic contributions – Spread across the year or lump sum
3. Choose ETF strategy, not savings – Let your money grow
4. Keep the tax certificate – Claim the deduction on your return

Pillar 3a is the closest thing to "free money" in Swiss finance. The tax benefit is guaranteed. If you're not using it, you're leaving thousands on the table.

Read Next

• Swiss Taxes for Expats: Complete Guide – Understand the whole picture
• Tax Deadlines 2025 – Don't miss important dates
• Finance Recommendations – Our vetted partner list

Frequently Asked Questions

What's the maximum 3a contribution for 2025?

For employed people with a pension fund: CHF 7,056. For self-employed without a pension: 20% of net income, max CHF 35,280.

Can I open 3a if I'm not Swiss?

Yes! Anyone working and paying taxes in Switzerland can contribute to Pillar 3a, regardless of nationality or permit type.

Should I invest or keep in savings?

Invest. Savings accounts pay 0.5-1%, which barely keeps up with inflation. ETF-based providers like VIAC and Finpension average 5-7% long-term. Over 30 years, the difference is massive.

Can I contribute in January for last year?

No. Contributions must be made by December 31 of the tax year. Missed it? That limit is gone forever.

What happens if I leave Switzerland?

You can withdraw your full 3a balance when you permanently leave. A one-time tax (usually 5-10%) applies, but it's typically less than what you saved in deductions.

Start today. Every year you wait costs you money.