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Tax deductions Fribourg: Complete guide to optimizing your 2026 tax return

Claire Fivaz — Thu, 29 Jan 2026 12:58:51 +0000

Table of main tax deductions in Fribourg

Deduction	Category	Maximum amount
Travel expenses	Professional	ICC: max. CHF 12,000 IFD: max. CHF 3,300 Car: 70 ct/km (up to 10'000 km), 60 ct/km (10'001-20'000 km), 50 ct/km (>20'000 km) Motorcycle: 40 ct/km Light vehicles (bicycle, moped): CHF 700
Meal expenses	Professional	CHF 15/day (max. CHF 3,200/year) CHF 7.50/day with employer contribution (max. CHF 1,600/year)
Out-of-home expenses	Professional	CHF 30/day (max. CHF 6,400/year) Reduction to CHF 7.50 for lunch if employer participates
Other business expenses (flat rate)	Professional	3% of net salary IFD: min. CHF 2,000, max. CHF 4,000
Continuing education and training costs	Professional	Actual costs max. CHF 12,000/year (not limited to training related to current activity)
Dual careers for spouses	Professional	IFD: 50% lowest net income (min. CHF 8,600, max. CHF 14,100)
Building maintenance - Flat-rate (built after 31.12.2013)	Housing	10% of total rental value
Building maintenance - Flat-rate (built before 31.12.2013)	Housing	20% of total rental value
Building maintenance - Actual costs	Housing	Energy-efficient investments, repairs, renovations, insurance, administration
3rd pillar A (employee with BVG/LPP)	Pension	CHF 7,258
3rd pillar A (self-employed without BVG/LPP)	Pension	20% net income (max. CHF 36,288)
2nd pillar (BVG) purchases	Pension	Gap amounts (Please note: no further repurchases may be made within the following 3 years)
Health insurance premiums	Pension	ICC: Flat-rate deduction according to personal situation Single person: CHF 4,810 Married couple: CHF 9,620 Child <18 ans: 1'140 chf Young student aged 18-25: CHF 4,210 IFD: Cumulative lump-sum deduction (see guide)
Interest on savings capital (debt)	Pension	Deduction limited to yields (codes 3.210, 3.220, 3.240, 3.250) Married couple: CHF 300 Other taxpayers: CHF 150
Private debt (mortgage interest, loans, etc.)	Pension	Deductible up to gross asset income + CHF 50,000
Childcare expenses	Family	Per child <14 ans ICC: max. CHF 12,000 IFD: max. CHF 25,800 (Supporting documents required)
Social deductions for children	Family	Declining balance according to net income (code 6.910) Examples: Income ≤62'700 CHF: 8'600 CHF (1 child) Income ≤72'800 CHF: 17'200 CHF (2 children) Income ≤82'900 CHF: 26'800 CHF (3 children) (See complete scale in the guide)
Other dependents	Family	CHF 5,000 per needy person (Maintenance costs: min. CHF 6,700/year)
Taxpayer in school or apprenticeship	Family	CHF 3,600 (Up to the age of 25)
Wheelchair activity	Family	CHF 2,500 (If gainfully employed and no OASI/DI pension)
Orphan of mother and father	Family	CHF 8,600 (If minor, student or apprentice)
Social deduction for home care	Family	Amount actually received as lump-sum compensation (ICC only)
Maintenance payments	Family	Amount actually paid
Medical and sickness expenses	Health	ICC: Amount exceeding 0.5% of net income IFD: Amount exceeding 5% of net income
Disability-related expenses	Health	Full amount (without deductible)
Donations to charitable organizations	Other	ICC & IFD: min. CHF 100, max. 20% of net income (code 4.910) (Exempt legal entities with registered office in Switzerland)
Donations to political parties	Other	ICC: max. CHF 5,000 (Party obtaining min. 3% of the vote in cantonal elections) IFD: max. CHF 10,600
Low-income deduction	Other	Decreasing amount according to situation and net income Examples (ICC only): Single person (income ≤20'300): CHF 4'100 Married couple (income ≤24'300): CHF 5'100 Single AHV/IV pensioner (income ≤24'300): CHF 9'100 (See complete scales in the guide)
Social deduction on wealth	Other	Declining balance according to net assets Single person (assets ≤75'000): CHF 55'000 Married couple (assets ≤125,000): CHF 105,000 (See complete scales in the guide)
Tax rate reduction	Other	50% for married couples and single-parent families (Full splitting - automatic, ICC only)

1. Medical expenses

Automatic lump-sum deduction

Medical expenses are an important deduction, but their eligibility threshold is higher than in other cantons. To be deductible, your medical expenses must exceed 5% of your income net (code 4.910).

Example of deductible expenses:

Medical treatment and hospitalization
Prescription drugs
Medical devices
Glasses and contact lenses (with medical certificate)
Supplementary health insurance premiums
Substantial dental costs
Medically prescribed therapies

Practical example: Couple with a net income of CHF 80,000 and medical expenses of CHF 6,000 :

Disability-related expenses

People who take care of elderly, sick or disabled relatives can deduct the amount they actually receive as a tax deduction.’lump-sum allowances in home care.

Please note: This deduction only applies to cantonal tax.

2. Volunteer payments: optimize your donations

General conditions

Charitable donations represent an opportunity to reduce your tax burden while supporting causes close to your heart. The canton of Fribourg applies specific rules for this deduction.

Eligible organizations:

Legal entities headquartered in Switzerland
Tax-exempt institutions with a public service or charitable purpose
Confederation, cantons, municipalities and their institutions
Red Cross, Winter Relief, Pro Juventute
Museums and public hospitals
Assistance institutions

Deduction limits:

Advice on major gifts: If you are planning to make a substantial donation, please contact the cantonal tax department beforehand to avoid any misunderstanding regarding deductibility. In special cases of overriding public interest, the Conseil d'Etat may authorize a deduction in excess of 20%.

List of institutions: A non-exhaustive list of tax-exempt legal entities headquartered in Fribourg is available.

3. Social deductions for children

The canton of Fribourg applies a particularly generous system of child deductions, but with one particularity: the amount decreases progressively according to the taxpayer's net income.

Conditions of eligibility

The deduction is granted for:

Important rule: The situation on December 31 is decisive. However, the deduction is maintained if the child dies during the year.

Notable exceptions:

Scale of deductions based on net income

Tax deductions for children based on net income in Switzerland decrease progressively as income rises.

For 1 child: The deduction starts at CHF 8,600 for incomes up to CHF 62,700 and decreases in increments of around CHF 100 to CHF 7,100 for incomes over CHF 76,701.
For 2 children: The deduction starts at CHF 17,200 for incomes up to CHF 72,800 and gradually decreases to CHF 14,200 for incomes over CHF 86,801.
For 3 children: The deduction starts at CHF 26,800 for incomes up to CHF 82,900 and drops to CHF 22,300 for incomes over CHF 96,901.
For 4 children: The deduction starts at CHF 36,400 for incomes up to CHF 93,000 and decreases to CHF 30,400 for incomes over CHF 107,001.

4. Other social deductions

Other dependents

Deduction of CHF 5,000 for each needy person you support for at least CHF 6,700 per year.

Terms and conditions:

Taxpayer in school or apprenticeship

Deduction of CHF 3,600 for the taxpayer himself if he is:

Wheelchair activity

Deduction of CHF 2,500 if you meet these three cumulative conditions:

Orphan of mother and father

Deduction of CHF 8,600 for taxpayers who have lost both parents if they are:

This deduction must be entered on the taxpayer's own tax return. The system of limitations and reductions follows the same scale as for child deductions.

5. Low-income deduction

The canton of Fribourg provides an additional deduction for people on modest incomes, with scales differentiated according to family situation and pensioner status.

AHV/IV pensioners living alone without children: The deduction starts at CHF 9,100 for incomes up to CHF 24,300 and gradually decreases to CHF 0 for incomes over CHF 54,301.
AHV/IV pensioners married or with child(ren): The deduction starts at CHF 11,100 for incomes up to CHF 30,300 and decreases to CHF 0 for incomes over CHF 57,301.
Non-annuitant taxpayers living alone: The deduction starts at CHF 4,100 for incomes up to CHF 20,300 and decreases to CHF 0 for incomes over CHF 40,301.
Non-annuitant taxpayers married or with child(ren): The deduction starts at CHF 5,100 for incomes up to CHF 24,300 and decreases to CHF 0 for incomes over CHF 49,301.

In short, as income increases, the deduction decreases, and the amounts are higher for pensioners and people who are married or have children.

6. Social deduction on wealth

The canton of Fribourg also offers a deduction on net wealth, exclusive to cantonal tax.

In short, as net wealth increases, the deduction decreases, and couples or parents benefit from higher deduction amounts.

7. Deduction for recognized forms of pension provision

2nd pillar purchases

The buying back contribution years in occupational pension plans represent a significant tax advantage. However, the amounts paid in cannot be withdrawn as capital for a period of three years. All early withdrawal results in the cancellation of the tax advantage, accompanied by a tax reminder procedure.

Contributions to a pillar 3a pension plan

Contributions to the Pillar 3a are deductible within limits which depend on your situation:

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Life insurance payments

This item covers insurance for which premiums have not already been taken into account elsewhere, such as life insurance with or without surrender value, insurance covering only the risk of death, daily allowance insurance and life annuity insurance.

The maximum deductible amounts are from:

8. Business expenses

Income acquisition costs for salaried employees

Income acquisition expenses apply only to dependent activities as their main occupation. Salaried secondary occupations are subject to specific rules. Furthermore, when one spouse works in the other's business, expenses are only allowed if a genuine employment relationship can be proven, with social insurance coverage, and if this activity clearly goes beyond normal mutual assistance between spouses.

No deductions are allowed for expenses already covered by the employer, or for expenses related to children in training, such as transport, accommodation or board.

Transportation to and from work

Travel expenses can be deducted when the distance between the home and the workplace is exceeds 1.5 km. The deduction is capped at CHF 12,000 per year for cantonal and municipal taxes.

Calculation methods vary according to the means of transport used:

When the use of public transport is not possible or reasonably required (lack of connections, unfavorable schedules, infirmity, remoteness), a deduction per kilometer is allowed, with decreasing rates according to the number of kilometers traveled.

Meals away from home, weekly holiday and night work

Meals eaten away from home are deductible when it is impossible to return home for lunch, notably because of distance, irregular working hours or short breaks. The deduction is limited to CHF 15 per meal, with an annual ceiling. When the employer subsidizes meals, only a half-deduction is allowed.

People staying at their place of work during the week can deduct:

People working continuous shifts or night shifts can also benefit from a daily deduction, provided that these expenses are not already covered by the employer. In principle, this deduction cannot be combined with deductions for meals or accommodation away from home.

Other business expenses

A flat-rate deduction corresponding to 3 % of net salary is provided, with an annual minimum and maximum. It covers in particular:

Professional tools
Hardware and software
Specialized books
Professional clothing
Voluntary teleworking costs
Exceptional wear and tear due to activity
Using a private room for business purposes

The taxpayer can opt out of the flat-rate deduction and deduct his actual expenses, provided he can justify the totality of these expenses and the business need for them.

Secondary salaried activity

For a secondary salaried activity, a deduction proportional to income is allowed, within minimum and maximum limits. Any higher deductions must be supported by documentary evidence.

When both spouses are gainfully employed and taxed jointly, a deduction is granted on the gross income. lowest income. This rule also applies when one spouse provides significant professional assistance to the other.

9. Real estate-related deductions

Building maintenance costs

For each property and each tax period, the taxpayer can choose between:

Flat-rate deduction: it applies to private real estate and is calculated on the gross yield:

Deduction of actual costs: actual costs must be detailed, justified and correctly broken down. Only amounts actually paid are taken into account, after deduction of subsidies, insurance or discounts. Remuneration for the owner's personal work is never deductible.

Energy savings and demolition

In particular, investments to save energy or protect the environment are fully deductible:

These deductions are not allowed for buildings new or during the first 5 years following their construction.

If the amounts cannot be fully deducted in a single year, the balance can be deducted in the following way deferred over the following two fiscal periods.

The demolition costs for a replacement building are also deductible, subject to conditions and prior notification to the tax authorities.

9. Bank charges and other deductions

Securities administration fees

In particular, only expenses directly linked to the management of the securities are deductible:

Expenses incurred for the purchase or sale of securities, consultancy fees, tax costs or personal work are not deductible.

Bets linked to gaming winnings: Stakes on winnings from lotteries, betting or casino games are deductible at a flat rate of 5 % du gain, with a ceiling of CHF 5,000 per gain.

Annuities, long-term charges and housing rights

Are deductible:

The return portion of life annuities and life maintenance contracts is also deductible. The beneficiary must always be indicated.

Alimony paid

The alimony and child support paid to a divorced or separated spouse are deductible if proven.

Contributions paid on behalf of minor children are also deductible when the beneficiary parent has parental authority.

On the other hand, contributions paid for children over the age of majority are not deductible and are not taxable in the child's home. Social security deductions for children depend on the actual cost of maintenance.

10. Tax rate reduction: full splitting

The canton of Fribourg applies a system of full splitting particularly advantageous for married couples and single-parent families.

Splitting principle at 50%: Overall taxable income (code 7.910) is taxed at the rate corresponding to 50% of this income. The minimum tax rate (1%) remains applicable.

This discount automatically applies to:

Important: No action is required, as the reduction is applied automatically by the tax authorities.

Tips for optimizing your Fribourg tax return

1. Check your situation on December 31

The December 31 date is decisive for most social deductions. Make sure that your family situation and that of your dependent children are correctly established on this date.

2. Plan your BVG & 3a buy-ins

If you are planning to buy into your pension fund, spread the purchases over several years rather than making them all at once. This maximizes the tax advantage by avoiding excessive growth.

Proceed to redemptions in pillarv3a from 2026 (for the year 2025).

4. Check the eligibility of institutions

Before making a major donation, consult the list of recognized institutions on the cantonal website, or contact the tax authorities directly.

5. Keep all your receipts

Even if certain documents do not need to be attached to your tax return, keep them for at least 10 years. The tax authorities may ask for them in the event of a subsequent audit.

6. Take advantage of the 3rd pillar until December 31

To ensure that your 3rd pillar (A and/or B) is deductible for the current tax year, it must be made before December 31. Don't delay, as some establishments have processing deadlines.

13th AHV Pension: Everything You Need to Know About the Payment Starting in 2026

Claire Fivaz — Wed, 28 Jan 2026 12:50:00 +0000

Did you know?

The combined benefits of the 1st pillar and 2nd pillar generally cover only about 60% of previous income.

What is the 13th AHV pension?

The 13th AHV pension represents an additional monthly pension paid once a year, in December, to all recipients of an old-age pension. In concrete terms, it corresponds to one twelfth of the total amount of old-age pensions received during the year.

The amount of the 13th AHV pension is calculated according to the following rules:

It is equivalent to 1/12 of your annual retirement pension.
Supplementary pensions, children's pensions and special supplements (in particular for women of the AVS 21 transitional generation) are not taken into account.
The amount is rounded to the nearest franc
A precise calculation is only possible in December, as the pension may vary during the year.

Who benefits from the 13th AVS pension?

All individuals entitled to an old-age pension in the month of December will automatically receive the 13th AHV pension. The payment will be made at the same time as the regular December pension.

Important to remember

Only old-age pensions are affected by this additional annual payment. Survivors’ pensions (widows, widowers, orphans) and disability pensions (IV) will continue to be paid only 12 times per year.

In the event of death between January and November, beneficiaries will not be entitled to the payment of the 13th AHV pension.

Implementation schedule

The first payment of the 13th AHV pension will take place in December 2026. The payment arrangements were adopted by the Federal Council at its meeting on November 12, 2025, and then unanimously approved by the National Council.

No action is required on your part: the payment will be made automatically if you receive an old-age pension in December.

Financing the 13th AHV pension

The cost of this measure is estimated at CHF 4.2 to 4.3 billion per year from 2026, of which around 850 million will be borne by the Confederation. Without additional funding, the AHV compensation fund would rapidly fall below the legal threshold of 100% of annual expenditure.

The Federal Council proposes to finance the AHV through a uniform increase in VAT (standard rate at 8.8%, reduced rate at 2.8%, and accommodation at 4.2%), which would ensure the system’s balance until 2030. Meanwhile, the Council of States favors a mixed solution combining a moderate increase in employee contributions starting in 2028, a capped VAT increase (with 0.5 points dedicated to the 13th AHV pension), and a relaxation of the compensation fund. This approach aims to better distribute the burden between workers and retirees and to prepare for potential future reforms, while parliamentary discussions continue in 2026 to reconcile the positions of both chambers.

Impact on supplementary benefits

The 13th AHV pension will not be taken into account when calculating the income required to qualify for the supplementary benefits (PC). It will therefore not lead to a reduction or elimination of any of your PCs.

Anticipating pension gaps

While the 13th AHV pension is a welcome improvement, it does not address the structural challenges of old-age provision in Switzerland. Pensions from occupational pension funds continue to decline due to low interest rates and increasing life expectancy.

All too often, AHV and occupational pension benefits cover only 50% of the last salary, while 70% to 80% is needed to maintain one’s standard of living. This gap in coverage must be filled through private savings (3rd pillar).

Our recommendation

From the age of 50, it is essential to :

Even with the 13th AHV pension, careful planning is still essential if you want to enjoy your retirement with peace of mind.

Need help analyzing your situation? Our pension experts can assist you in setting up a retirement planning strategy tailored to your needs. Contact us for a personalized, no-obligation assessment.

Frequently asked questions about the 13th AHV pension

I'm an invalidity pensioner. Will I be entitled to the 13th pension?

No. Only old-age pensions are paid 13 times a year. Disability pensions continue to be paid 12 times a year.

Can I calculate my 13th AHV pension now?

A precise calculation is only possible in December of the year of payment, as your pension may vary during the year. For an estimate, divide your annual retirement pension by 12.

Which caisse should I contact if I have any questions?

The competent fund is the one that pays your December AHV pension. Contact it directly for any information requests.

I'm a widow receiving a survivor's pension. Will I receive a 13th pension?

No. Survivors' pensions (widows, widowers and orphans) are not affected by the 13th pension. Only old-age pensions benefit from this additional payment.

What happens if I die before December?

If you die between January and November, your heirs will not be entitled to the 13th AHV pension for that year.

Do women of the AVS 21 transitional generation receive their 13th pension supplement?

No. The extraordinary supplement granted to women born between 1961 and 1969 is paid only 12 times a year. Only the basic old-age pension is paid 13 times.

Will the 13th AHV pension be taken into account for my supplementary benefits?

No. The 13th AHV pension is explicitly excluded from the calculation of income qualifying for supplementary benefits. It will therefore not reduce your supplementary benefits.

Do I need to take any steps to receive the 13th AVS pension?

No. Payment is fully automatic. If you receive a retirement pension in December, you will automatically receive your 13th pension with your regular payment.

I'm retiring in March 2027. Will I be entitled to the 13th pension in December 2027?

Yes, as long as you are receiving a retirement pension in December 2027, you will be entitled to the 13th pension. It will be calculated in proportion to the months in which you received your pension during the year.

Is the 13th AHV pension taxable?

Yes, like the ordinary AVS pension, the 13th pension is subject to income tax.

My spouse and I both receive AHV pensions. Will we each receive a 13th pension?

Yes, every pensioner receives his or her own 13th pension, calculated individually on the basis of his or her personal pension.

Can the amount of the 13th AHV pension vary from year to year?

Yes, as it corresponds to 1/12 of your annual pension, if your monthly pension changes (inflation adjustment, change in your situation), the amount of your 13th pension will change accordingly.

Part-time Work: How to Fill the Gaps in Pension Coverage?

Claire Fivaz — Tue, 20 Jan 2026 09:55:46 +0000

Did you know?

The combined benefits of the 1st pillar and 2nd pillar generally cover only about 60% of previous income.

Pension gaps: more than just a question of money

When discussing pension gaps related to part-time work, the first thing that comes to mind is the reduction of retirement capital. This is indeed a major issue, but it is not the only one. Gaps also affect risk coverage: life insurance, disability insurance in case of illness (LPP) or accident (LAA).

This distinction is crucial because these two types of risks are treated differently. Accident coverage falls under the LAA (Accident Insurance Act), while protection in the event of disability due to illness depends on your pension fund (LPP). Poorly planned part-time work can leave you vulnerable on both fronts, but especially in the case of illness-related disability.

The main problem: lack of pension fund affiliation

Most people working part-time are not affiliated with a pension fund. It should be noted that the LPP entry threshold is set at CHF 22,680 per year (as of 1.1.2026). Below this amount, you are simply not insured under the 2nd pillar.

In practical terms, this means:

For women in particular, who are often over-represented in part-time work, this situation can create dangerous financial dependency and considerable pension gaps.

Voluntary 2nd pillar affiliation

Even if your salary is below the LPP/BVG threshold, some pension funds allow voluntary affiliation. This option can be attractive for obtaining death and disability coverage while also accumulating retirement capital.

Check with your employer to see if the rules of their pension fund allow for this option. If not, other solutions are available.

The solution: Pillar 3a as an essential alternative

In the absence of LPP coverage, the 3rd pillar (tied pension plan) becomes your main tool to fill these gaps. However, be aware that not all 3rd pillar plans are equally suitable for your situation.

3a in insurance: the solution tailored for part-time work

For part-time workers without LPP affiliation, a 3rd pillar in insurance offers several decisive advantages:

Death and disability protection: Unlike a 3a bank policy, a 3a insurance policy includes cover in the event of death or disability. These guarantees compensate for the absence of BVG protection.
Guaranteed savings: even in the event of disability, your contributions continue to be paid, thanks to the waiver of premiums. Your retirement capital continues to build up without you having to pay.
Flexibility: you can tailor the level of coverage to your personal situation and protection needs.

Pillar 3a contribution limits

In 2026, it will be possible to pay out amounts in tied personal pension plans:

If you are not affiliated with a pension fund due to part-time work, you therefore benefit from a significantly higher contribution ceiling. This is an opportunity to take advantage of to compensate for the absence of a 2nd pillar, provided you have the financial capacity to do so.

Complete with a 3a bank

Once risk coverage is secured through an insurance-based 3rd pillar, you can consider supplementing it with a bank-based 3rd pillar for the purely savings component. This approach offers:

A combined strategy is therefore ideal: a 3a insurance policy for protection, complemented by one or more 3a bank policies to maximize savings within the annual limit.

Why choose Invexa for your 3rd pillar?

We are one of the few brokers who clearly explain the real costs, in plain language, with no hidden catches.
We focus on fund performance, the transparency and the relevance for your situation, not about pushing a product.
We work exclusively with selected service providers, and we only recommend solutions that really suit you.

Spouse protection: an often overlooked aspect

If you work part-time and care for children, it is essential that your partner names you as beneficiary of their pension fund, life insurance, and 3rd pillar plan.

Key point: this protection is automatic if you are married, but not if you are in a cohabiting relationship. In that case, your partner must take explicit steps to designate you as a beneficiary. Certain conditions must be met; generally, five years of living together are required.

Accident insurance: not to be forgotten

Under the LAA, you are insured against both occupational and non-occupational accidents if you work more than 8 hours per week for the same employer.

If you work less than 8 hours per week, you remain covered for occupational accidents but not for non-occupational accidents. In that case, you must arrange this coverage yourself through basic health insurance, where the gaps can be significant.

Warning: the amount of daily benefits and pensions depends on your insured earnings, which are naturally reduced in the case of part-time work. Make sure that the coverage level is sufficient to maintain your standard of living in the event of an accident.

Concrete steps to secure your pension coverage

To avoid unpleasant surprises, here are the steps to follow:

1. Check your LPP/BVG membership: ask your employer for your pension certificate. If your annual salary is less than CHF 22,680, find out whether you can join voluntarily.

2. Open a 3a in insurance: Choose this solution to benefit from death and disability cover, which compensates for the absence of a 2nd pillar.

3. Complete with a banking 3a: if your finances permit, maximize your payments up to the annual limit.

4. Secure your family situation: if you are cohabiting, make sure you are named as beneficiary in your partner's pension fund, life/death insurance and Pillar 3a.

5. Check your accident coverage: confirm that you are insured against non-work-related accidents, especially if you work less than 8 hours a week.

6. Check your AHV statement regularly: order your individual account statement (CI) to check that there are no gaps in your contributions. You have five years in which to fill them.

Concrete steps to secure your pension coverage

Part-time work need not be synonymous with future financial insecurity. With the right strategy and the right tools, such as Pillar 3a insurance for protection and Pillar 3a banking for savings, you can effectively compensate for the absence of BVG coverage.

The key is to act quickly: every year without protection is a year in which you and your loved ones are exposed to significant financial risk. Don't wait to put your pension strategy in place.

Need help analyzing your situation? Our pension experts can help you set up a strategy tailored to your part-time situation. Contact us for a no-obligation personal assessment.

Frequently asked questions

Am I affiliated to a pension fund if I work part-time?

You are automatically enrolled in a pension fund if your annual salary exceeds CHF 22,680 (as of 1.1.2026). Below this threshold, you are not insured under the 2nd pillar, unless your pension fund allows for voluntary affiliation.

What is the maximum amount I can contribute to my 3rd Pillar A?

The maximum amount for the 3rd pillar in 2025 is CHF 7,258 for individuals affiliated with a pension fund (LPP).
For self-employed individuals without a 2nd pillar, the ceiling is 20% of income, up to CHF 36,288.

When can you withdraw your 3rd pillar A?

The 3rd pillar can be withdrawn in the following cases:

5 years before AHV retirement age
Purchase of principal residence
Mortgage amortization
Departure from Switzerland
Independence
Disability or death

What type of 3rd pillar plan should I choose?

There are a wide range of options for the 3rd pillar, either through a bank or an insurance provider. Most products can be subscribed to within both tied pension schemes (pillar 3a) and flexible pension schemes (pillar 3b).

In insurance, a third pillar is often set up in the form of a life insurance policy or income protection insurance, while in banking, a 3a or 3b most often corresponds to a standard savings account or one linked to investment funds.

Comparing 3rd pillar plans will help you choose the solution best suited to your profile and goals.

Is a 3a in banking or insurance better for part-time work?

For part-time workers without LPP affiliation, a insurance-based 3rd pillar is generally recommended as the first option because it offers:

Death and disability cover to compensate for the absence of a 2nd pillar pension plan
Waiver of premiums in the event of disability
Protection for your loved ones

Can I buy back years of contributions to my pension fund if I work part-time?

Yes, if you are affiliated with a pension fund (salary > CHF 22,680), you can make voluntary buy-backs to cover gaps in your pension provision. These purchases are tax-deductible.

AXA 2026 3rd pillar: analysis of SmartFlex solutions (3a/3b)

Claire Fivaz — Thu, 15 Jan 2026 09:56:33 +0000

What is the 3rd pillar?

1. Pillar 3a (tied pension provision): primarily intended for retirement, it offers significant tax advantages by allowing contributions to be deducted from taxable income. For 2025, the maximum amount deductible is CHF 7’258 for employees affiliated with a pension fund. In return, the capital remains locked in until retirement, except under specific conditions (home purchase, moving abroad, starting self-employment).

1. Pillar 3a (tied pension provision): mainly intended for retirement provision, it offers tax advantages but imposes certain withdrawal conditions.

2. Pillar 3b (unrestricted pension provision): more flexible, allowing more flexible use of the savings accumulated.

AXA 3rd pillar solutions

AXA offers a 3rd pillar insurance (3a/3b) with risk coverage. The offer is structured around three distinct plans, each meeting different objectives.

1. SmartFlex Pension Plan (3a/3b)

The principle is based on regular payments from CHF 600 per year (i.e. CHF 50 per month) and until maximum amount in 3a. This accessibility makes it possible to start early, even with a limited budget. The minimum term is 7 years for Pillar 3a and 10 years for Pillar 3b.

Flexible premium allocation is the central element of SmartFlex. With each payment, you decide how to divide your premium between 2 compartments:

1. The secure capital functions like a traditional savings account. Your money is legally guaranteed at 100% within AXA’s tied assets. It earns a technical interest rate (currently 0% according to the provided offer) plus a potential variable surplus interest (projected at 1.50% in the moderate scenario). The drawback: potentially limited returns over the long term.

2. The performance-oriented capital is invested in equities through diversified funds. You benefit from financial market growth and historically higher returns. The capital is guaranteed up to the current value of the fund units. The advantage: higher return potential driven by equity markets. The drawback: short-term fluctuations depending on market movements.

Key features

2. SmartFlex Capital Plan (3a/3b)

The AXA SmartFlex Capital Plan is an investment solution under the 3a pillar (transfer only) and 3b pillar that combines performance, security, and flexibility. You can freely decide what portion of your capital is invested in equities to seek returns and what portion remains securely placed at a preferential rate currently set at 2.2%. This allocation can be adjusted at any time, free of charge.

One of the great advantages of SmartFlex is its tax benefitsPillar 3b: dividends and interest are not subject to income tax if the Pillar 3b conditions are met. In the event of death or bankruptcy, the capital also benefits from legal protection, as it is excluded from the estate and protected from creditors. Thanks to very low fund charges, similar to those of large institutional investors, the potential return is more attractive than on a conventional savings account.

You can strengthen the security of your investment by activating, free of charge and at any time, options such as staggered investment management (to smooth out market entry risks), gain protection, or the progressive reallocation of capital towards the end of the contract.

Key features

3. SmartFlex Income Plan (3b only)

The AXA SmartFlex Income Plan is designed for those who wish to turn a single lump sum into regular income while maintaining full control over their savings. You make an initial contribution of CHF 15,000 or more and define the amount, frequency, and duration of the payments you wish to receive. If your needs change, the contract remains flexible — you can adjust both the withdrawals and the capital allocation at any time.

The investment is divided into two parts. The secure capital earns a fixed preferential rate and is 100% protected in the event of AXA’s insolvency. The performance-oriented capital, on the other hand, is invested in diversified equity funds according to the investment theme you choose.

Key features

Comparison of the three AXA plans

Savings + protection

Placement

Regular income

Periodic premium

Lump sum

3a/3b

3a (transfer)/3b

Yes

Minimal

Four investment themes available

World - Replicates the MSCI ACWI index (2,558 companies, 47 countries). Low-cost passive management (0.16%/year). High exposure to the United States (65%), followed by Japan (4.9%), the United Kingdom (3.4%) and China (3.2%). Main sectors: technology (23%), finance (18%) and consumer (11%). Ideal theme for global diversification.
Switzerland - Invested in major Swiss companies (Nestlé, Novartis, Roche). Offers familiar but geographically and sectorally concentrated exposure. SPI historical performance: +7.2%/year over 25 years.
Durability - Selection of ESG-compliant companies, excluding tobacco, weapons, coal, oil and gas. Combines ethical values with competitive returns.
Future trends - Focus on innovative sectors (AI, renewable energies, digital healthcare). Riskier in the short term, but high potential in the long term.

What are AXA's 3rd pillar fees?

AXA's SmartFlex plan also stands out for its clear, low-cost structure. Fund charges vary according to the investment theme chosen: between 0.13 % and 0.39 % per annum, and there are no issue or redemption fees. When contract management and administration fees are added, the total cost (including TER) averages around 0.9 to 1.3% per year, according to configuration and the duration of the plan. In all cases, contract fees are as follows indicated clearly in the’offer.

This is a low level for an insured pension product, especially when compared to other 3a solutions on the market, which often exceed the 2 %. In practice, AXA manages to keep these costs down thanks to its largely passive and institutional management. AXA's Pillar 3a is one of the least expensive insurance products in Switzerland.

Are you interested in AXA's 3rd pillar solution?

Receive a offer as well as a objective assessment within 24 hoursadvantages, limits and relevance to your age, professional situation and savings objectives.

Conclusion

AXA's SmartFlex is one of the world's leading pension solutions. modern and efficient, designed for those who want to grow their savings without tying their hands. By combining flexibility, tax advantages, security options and controlled costs, this plan brings the world of insurance closer to that of pure investment.

The result is an intelligent hybrid product: secure enough for retirement, but performing well enough to generate real long-term capital growth thanks to high-quality funds with very competitive fees (TER at 0.13% for the «World» fund). For those looking for an alternative to the classic 3a account, and who want to retain control over their allocation between security and yield, SmartFlex is clearly one of the most coherent options on the Swiss market today.

Frequently asked questions

What's the best AXA investment?

AXA offers 4 funds for SmartFlex products:

1. AXA (CH) Strategy Fund Global Equity CHF (TER: 0.13%)

2. AXA (CH) Strategy Fund Swiss Equity CHF (TER: 0.37%)

3. AXA (CH) Strategy Fund Trends Equity CHF (TER: 0.34%)

4. AXA (CH) Strategy Fund Sustainable Equity CHF (0.24%)

The best-performing funds is the historical Global Equity CHF (1), a passively managed global index fund that replicates the MSCI ACWI, hedged in Swiss francs at around 85 % against currency risks. The TER (annual costs) amounts to only 0.13%. Performance since launch in 2019 amounts to +87.72%.

Who can benefit from an AXA 3rd pillar?

AXA’s 3rd pillar is aimed at anyone looking to build capital over the long term while benefiting from a favorable tax framework.

It is particularly well suited for those who wish to prepare for retirement proactively, protect their loved ones in the event of death, or simply invest in a disciplined way. Thanks to its flexibility, SmartFlex adapts equally well to young professionals, self-employed individuals, or families seeking a balance between security and performance.

What's the difference between pillar 3a and 3b?

The difference between 3a and 3b is as follows:

Pillar 3a is linked to occupational pension provision: deposits are tax-deductible, but withdrawals are restricted by law (retirement, property purchase, independence, etc.).
Pillar 3b, However, the money remains accessible at all times, and some solutions (such as SmartFlex 3b) offer inheritance benefits and protection in the event of bankruptcy.

In all cases, compare the 3rd pillars will help you find the solution that's best for you.

What returns can we expect?

Returns depend on the proportion invested in yield-oriented capital (equities) and the investment theme chosen. Historically, SmartFlex funds have posted solid performances: the «World» theme, for example, has generated 87.72% in returns (+10% annualized) since its launch in 2019. This fund has even outperformed its benchmark of 86.27. Naturally, results vary according to market and investment horizon.

AXA theme monde - Portfolio performance VS benchmark

Can I change my investment theme?

Absolutely. You can switch from one theme to another, for example from «World» to «Sustainability», free of charge, at any time.

What are the minimum amounts?

The minimum annual premium is around CHF 600 for versions 3a and 3b. For the SmartFlex income plan, the initial contribution must be at least CHF 15,000.

Is it risky to invest your Pillar 3a in equities?

Historically, equity investments have delivered higher long-term returns than so-called “safe” assets such as bonds or savings accounts. If you have more than 15 to 20 years before retirement, allocating a portion to equities is often recommended to generate stronger returns.

The key is to adjust the allocation to your risk profile and gradually reduce the equity portion as you approach retirement.

What happens in the event of disability?

In the event of a loss of earning capacity, AXA provides a premium waiver.
In practical terms, if you become unable to work due to illness or an accident, AXA steps in and continues paying the premiums on your behalf, ensuring that your retirement plan remains fully intact.

It works as follows:

As soon as a loss of earning capacity of at least 25% is recognized, AXA covers a portion of the premiums.
If the disability reaches 66 % or more, you are completely free of premium payments.
The waiting period before coverage begins depends on the contract (3, 6, 12, or 24 months, depending on your selection).

During this period, your SmartFlex plan continues to function normally: savings remain invested, guarantees remain in force, and you do not lose your tax benefits or your protection in the event of death.

Tax Deductions in Geneva: Complete Guide and List of Deductions for 2026

Claire Fivaz — Tue, 13 Jan 2026 13:12:59 +0000

Main Tax Deductions in the Canton of Geneva

Deduction	Category	Maximum amount
Travel expenses	Professional	ICC: max. CHF 534 IFD: max. CHF 3,300
Meal expenses	Professional	CHF 15/day (max. CHF 3,200/year) CHF 7.50/day with employer contribution (max. CHF 1,600/year)
Other business expenses (flat rate)	Professional	3% of net salary ICC: min. CHF 640, max. CHF 1,812 IFD: min. CHF 2,000, max. CHF 4,000
Dual careers for spouses	Professional	ICC: CHF 1,051 IFD: 50% lowest net income (min. CHF 8,600, max. CHF 14,100)
Family deduction (married couple)	Family	CHF 2,800
Building maintenance - Fixed price (≤10 years)	Housing	ICC: 15% rental value after allowance IFD: 10% gross rental value
Building maintenance - Fixed price (>10 years)	Housing	ICC: 25% rental value after allowance IFD: 20% gross rental value
Building maintenance - Actual costs	Housing	Energy-efficient investments, repairs, renovations, insurance, administration, additional property taxes
3rd pillar A (employee with BVG/LPP)	Pension	CHF 7,258
3rd pillar A (self-employed without BVG/LPP)	Pension	20% net income (max. CHF 36,288)
2nd pillar (BVG) purchases	Pension	Gap amounts
Health insurance premiums	Pension	ICC: Premiums actually paid Child: max. CHF 3,965 19-25 years: max. CHF 12,842 Adult: max. CHF 17,122 IFD: Cumulative lump-sum deduction (see guide)
Interest on savings capital (debt)	Pension	IFD: Cumulative lump-sum deduction with insurance (see guide)
Childcare expenses	Family	Per child <14 ans ICC: max. CHF 26,320 IFD: max. CHF 25,800
Dependent child or relative (fully loaded)	Family	ICC: 13,660 CHF IFD: CHF 6,800 (capped at CHF 10,508 if childcare costs deductible)
Half-dependent child or relative	Family	ICC: CHF 6,830 IFD: CHF 3,400 (Capped at CHF 5,254 if childcare costs deductible)
Single-parent deduction	Family	See conditions in the guide
Deduction for modest taxpayers	Family	See conditions in the guide
Maintenance payments	Family	Amount actually paid
Medical and sickness expenses	Health	ICC: Amount exceeding 0.5% of net income (code 92.20) IFD: Amount exceeding 5% of net income (code 92.20)
Disability-related expenses	Health	Full amount (without deductible)
Donations to charitable organizations	Other	ICC: max. 20% of net income (code 92.40) IFD: max. 20% of net income (code 92.40), minimum CHF 100
Donations to political parties	Other	ICC: max. CHF 10,000 IFD: max. CHF 10,600
Bank account and securities administration fees	Other	Effective, limited costs (see guide)

1. Professional Expenses: Lump Sum or Actual Costs?

Automatic lump-sum deduction

For employees, a flat-rate deduction of 3% net income is applied by default. This lump sum has different ceilings depending on the type of tax:

This deduction is automatically calculated by GeTax on the basis of gross income less compulsory social security contributions (AVS/AI/APG, and unemployment/AANP/AMat) and contributions to the 2nd pillar.

When to opt for actual costs?

In some situations, the actual expenses incurred far exceed the 3% flat rate. This is particularly the case for people who live far from their place of work, or who have specific business expenses. In such cases, you can opt out of the flat-rate system and deduct your actual expenses, provided they can be justified. This option mainly concerns:

Travel expenses: strict limits

Travel expenses between home and workplace are capped:

For the IFD, deductions vary according to the means of transport:

Public transport: effective subscription cost
Bicycle, moped or light motorcycle: lump sum CHF 700
Motorcycle (+50 cm³): CHF 0.40 per kilometer
Automotive: generally limited to the cost of public transport, except in exceptional circumstances (lack of public transport, incompatible schedules, disability), in which case CHF 0.70 per kilometer

Meal expenses: eligibility requirements

For the ICC, the deduction is only granted if the daily commuting time by public transport exceeds two hours:

For IFD, conditions are more flexible:

Is teleworking tax-deductible?

Teleworking only qualifies for a deduction in the following cases:

One room in your home must be exclusively and permanently dedicated to your professional activity.
The employer does not provide you with a workstation on its premises.
You must be able to deduct the part of the rent corresponding to this room.
Attach a copy of the lease and prove that the property is used exclusively for business purposes
Expenses relating to personal convenience or paid by the employer are not deductible.

Workers outside the canton: what deductions?

If you work outside the canton but do not live there during the week:

If you live outside the canton during the week:

Travel expenses: 534 CHF (ICC) / 3,300 CHF (IFD)
Meal expenses: up to CHF 30 per day for lunch and dinner (maximum CHF 6,400 per year)
ICC accommodation costs: effective rent up to CHF 500 per month
IFD accommodation costs: usual price of a room at the workplace

2. Pensions: Pillars 2 and 3A

2nd pillar purchases

The buying back contribution years in an occupational pension plan is an important tax deduction, but these payments must not be withdrawn as a capital sum for at least three years. A early withdrawal will result in a tax reassessment and cancellation of the deduction.

Contributions to a pillar 3a pension plan

Contributions to the Pillar 3a are deductible within limits which depend on your situation:

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Health and accident insurance

For the ICC, premiums (compulsory and supplementary) are deductible up to twice the cantonal average premium:

Important: Even if a subsidy fully covers your basic premium, report the total amount under code 52.21 and the subsidy under code 16.30.

For the IFD, health insurance premiums are combined with life insurance premiums and savings interest in an overall package:

Life insurance: optimize your tax deductions

For persons domiciled in Geneva, the maximum deductible amounts for a life insurance in 3rd pillar B are:

1. Cantonal and municipal tax (ICC)

2. Direct federal tax (IFD)

In both cases, the amounts are increased by half if the taxpayer is not affiliated to a 2nd pillar or pillar 3a.

Invexa helps you choose the best life insurance policies

Our experts will compare market offers for you and propose tailor-made solutions that combine tax benefits and financial security. Contact us for a personalized analysis of your situation.

Schedule an Appointment

Medical expenses: high deductibility thresholds

Medical expenses are only deductible above a certain threshold:

Practical example: Couple with child, medical expenses of CHF 7,000

Deductible medical expenses:

Medical treatment and hospitalization
Prescription drugs
Therapeutic vaccinations
Medical equipment
Glasses and contact lenses
Various therapies
Treatments for drug dependence

Important: Supporting documents must be retained but not attached to the declaration.

Disability-related expenses

Deduction of actual costs (after insurance/institutions):

Or flat-rate annual deduction for recipients of disability allowances:

4. Family deductions

Family expenses: significant amounts

For ICC:

For IFD (CHF 6,800 per dependant):

Childcare costs

Deductible expenses:

Day-care centers
After-school (before/after-school care, excluding school kitchens)
Vacation camps and summer camps
Vacation camps and summer camps
Care at home or with a third party (day mothers, nannies, au pairs)
Theme camps: fixed price CHF 50/day (maximum CHF 250/week)

Annual limits per child up to the month of the child's 14th birthday:

Important: Please enclose invoices with full details of the person being paid.

Deduction for dual-earner couples

Deduction for married couples (IFD)

Flat-rate deduction of CHF 2,800 for married couples or couples in a registered partnership, regardless of their activity.

Deductions for AHV/IV pensioners (ICC)

Decreasing deductions based on income are granted to beneficiaries of AHV pension/AI:

For couples (max. income CHF 98,080):

For single people (max. income CHF 85,287): maximum deduction of CHF 10,661, decreasing according to a similar scale.

5. Maintenance Contributions and Life Annuities

Alimony: full deductibility subject to conditions

Amounts fully deductible:

Important: all supporting documents must be supplied (payments, copy of judgment, etc.). Pensions for adult children are deductible only up to the month of majority.

Life annuities paid

Deductible up to 40% of their amount (60% = capital repayment):

6. Donations and payments to political parties

Charitable donations: conditions and limits

Eligible organizations:

Deduction limits:

Payments to political parties

Deductible amounts:

6. Capital allowances (ICC only)

Social deduction on wealth

Basic amounts:

The net personal assets of the adult child are subtracted from the CHF 43,816.

Deduction from business assets

For self-employed operators:

7. Property maintenance, bank charges and other deductions

Property maintenance costs

Account and securities administration fees

Professional training costs:

Deduction for occupational pension benefits

For services that began before certain dates:

Non-taxable but declarable income

Although tax-exempt, this income must be declared, as it is used to determine family expenses and the application of social laws:

Social benefits:

Supplementary OASI/DI benefits (SPC)
Supplementary family benefits
Supplementary benefits from the City of Geneva
Allowances for dependent persons
Transitional benefits for older unemployed people
Social assistance from Hospice général

Other exempt income:

Non-deductible expenses

List of expenses excluded from any deduction:

Maintenance costs for the taxpayer and his family (home rent, private expenses)
Debt repayment
Costs of acquiring, producing or improving assets
Interest on construction loans
Taxes on income, property gains and wealth
Commissions not justified by name
Secret commissions paid to public officials

If you are planning to buy into your pension fund, spread the purchases over several years rather than making them all at once. This maximizes the tax advantage by avoiding excessive growth.

Buy into 3a from 2026 (for the year 2025).

Tips for optimizing your tax return in Geneva

1. Keep all your receipts

Even if certain deductions are made on a flat-rate basis, always keep your invoices, certificates and supporting documents for at least 10 years. In the event of a tax audit, you'll need to be able to prove your expenses.

2. Compare flat-rate and actual expenses

For business expenses and building maintenance, always compare the lump-sum amount with your actual expenses. If you have incurred exceptional expenses (major works, expensive training), actual expenses may be more advantageous.

3. Plan your BVG & 3a buy-ins

If you are planning to buy into your pension fund, spread the purchases over several years rather than making them all at once. This maximizes the tax advantage by avoiding excessive growth.

Proceed to redemptions in pillarv3a from 2026 (for the year 2025).

4. Anticipate building work

If you're a homeowner planning major maintenance work, think about the best time to carry it out for tax purposes. A high-income year may be a good time to maximize the impact of the deduction.

5. Declare your childcare expenses

Many parents forget to declare their childcare costs in full. With a ceiling of CHF 13,000 per child, this deduction can represent a substantial saving.

6. Take advantage of the 3rd pillar until December 31

To ensure that your 3rd pillar (A and/or B) is deductible for the current tax year, it must be made before December 31. Don't delay, as some establishments have processing deadlines.

Source: Guide to the 2025 personal income tax return, getax.ch, General Directorate of the Cantonal Tax Administration.

Tax on 2nd pillar (BVG) withdrawals in 2026

Claire Fivaz — Mon, 12 Jan 2026 08:09:41 +0000

How are BVG lump-sum benefits taxed?

In Switzerland, lump-sum benefits from pension funds (such as the 2nd pillar) are taxed at a reduced rate, corresponding to 1/5 of the usual tax rate in most cantons.
The tax is collected by the canton of residence. A copy of the pension fund statement should be sent to the cantonal tax authorities.
Persons domiciled abroad are taxed directly at the source in Switzerland.

Taxation of buybacks

A buy-in to the 2nd pillar allows you to fill gaps in your pension coverage. It is made directly with your pension fund, which will inform you of the amount you can buy in.

Buybacks are 100% tax-deductible, but to fully benefit from them, you must not withdraw your BVG capital within the following 3 years. In case of early withdrawal, the tax authorities will revoke the deduction by issuing a tax reassessment.

Tax on 2nd pillar withdrawals: rates by canton

The table below provides a detailed comparison of the tax rates applied to the withdrawal of LPP capital (also applicable to pillar 3a withdrawals) across all 26 Swiss cantons. The data is calculated for the 2025 tax year and reflects the situation of a single 65-year-old man with no dependent children and no religious affiliation.

We have selected realistic withdrawal amounts ranging from 50,000 CHF to 2,000,000 CHF, allowing you to estimate the tax applicable to your situation. The indicated rates include all taxes (federal, cantonal, and municipal).

Canton, Commune	50'000	100'000	200'000	300'000	500'000	1 mio	2 mio
Aargau (Aarau)	3.2 %	4.9 %	6.57 %	7.43 %	8.3 %	8.8 %	9.0 %
Appenzell Inner-Rhodes (Appenzell)	2.4 %	3.3 %	4.33 %	4.78 %	5.2 %	5.3 %	5.3 %
Appenzell Ausserrhoden (Herisau)	7.6 %	8.0 %	8.69 %	9.14 %	9.9 %	11.1 %	11.7 %
Bern (Bern)	3.6 %	4.7 %	6.04 %	6.97 %	8.4 %	9.7 %	10.5 %
Basel-Landschaft (Liestal)	3.5 %	3.9 %	4.59 %	5.04 %	6.7 %	9.6 %	9.7 %
Basel-Stadt (Basel)	3.7 %	5.3 %	7.67 %	8.66 %	9.5 %	10.0 %	10.1 %
Fribourg (Fribourg)	2.0 %	3.3 %	5.79 %	7.74 %	9.3 %	10.4 %	10.9 %
Geneva (Geneva)	2.9 %	4.6 %	5.73 %	6.57 %	7.8 %	8.5 %	8.7 %
Glarus (Glarus)	4.8 %	5.2 %	5.92 %	6.37 %	6.7 %	6.9 %	6.9 %
Grisons (Chur)	2.9 %	3.2 %	4.04 %	4.49 %	5.7 %	5.9 %	5.9 %
Jura (Delémont)	5.4 %	6.2 %	8.02 %	8.92 %	9.7 %	10.1 %	10.2 %
Lucerne (Luzern)	3.8 %	5.1 %	5.07 %	5.71 %	8.0 %	8.4 %	8.5 %
Neuchâtel (Neuchâtel)	4.9 %	5.7 %	7.51 %	8.01 %	8.5 %	8.8 %	8.8 %
Nidwalden (Stans)	2.7 %	3.7 %	4.74 %	5.19 %	5.6 %	5.7 %	5.7 %
Obwalden (Sarnen)	5.4 %	5.8 %	6.41 %	6.86 %	7.3 %	7.5 %	7.5 %
St. Gallen (St. Gallen)	5.5 %	5.9 %	6.64 %	7.09 %	7.5 %	7.6 %	7.6 %
Schaffhausen (Schaffhausen)	2.1 %	3.3 %	4.52 %	5.01 %	5.5 %	5.7 %	5.7 %
Solothurn	3.5 %	5.0 %	6.54 %	7.26 %	7.7 %	7.8 %	7.8 %
Schwyz (Schwyz)	1.3 %	2.4 %	4.36 %	5.97 %	8.5 %	10.4 %	10.4 %
Thurgau (Frauenfeld)	6.2 %	6.6 %	7.36 %	7.81 %	8.2 %	8.4 %	8.4 %
Ticino (Bellinzona)	4.0 %	4.4 %	5.15 %	5.60 %	7.3 %	8.1 %	8.1 %
Uri (Altdorf)	3.9 %	4.3 %	5.00 %	5.45 %	5.8 %	6.0 %	6.0 %
Vaud (Lausanne)	3.4 %	4.6 %	6.36 %	7.40 %	8.4 %	9.1 %	9.3 %
Valais (Sion)	4.4 %	4.8 %	5.50 %	6.72 %	9.1 %	10.3 %	10.3 %
Zug (Zug)	1.8 %	2.9 %	4.17 %	4.99 %	5.8 %	6.3 %	6.4 %
Zurich (Zürich)	4.5 %	4.9 %	5.63 %	6.08 %	7.2 %	11.2 %	15.8 %

Source: Federal Tax Administration (FTA), Tax simulator

Example of tax on 2nd pillar withdrawals in French-speaking cantons

1. Canton of Geneva, commune of Geneva

Withdrawal amount

CHF 50,000

CHF 100,000

CHF 250,000

CHF 500,000

CHF 1,000,000

Single person

1'457.55 CHF

CHF 4'620.85

CHF 16,725.40

39,272.85 CHF

CHF 84,957.70

Married person

464.70 CHF

CHF 3,126.60

CHF 14,622.80

CHF 35,746.50

CHF 80,379.30

2. Canton of Vaud, municipality of Lausanne

Withdrawal amount

CHF 50,000

CHF 100,000

CHF 250,000

CHF 500,000

CHF 1,000,000

Single person

CHF 1'690.60

4,658.85 CHF

CHF 17,552.35

CHF 42,172

90,781.30 CHF

Married person

CHF 1'345.55

3,691.15 CHF

15,236.15 CHF

CHF 38,187.15

87,097.50 CHF

Single-parent family

1'502.95 CHF

CHF 4,098.50

CHF 16,390.70

CHF 40,469.65

CHF 89,399.95

3. Canton of Valais, municipality of Sion

Withdrawal amount

CHF 50,000

CHF 100,000

CHF 250,000

CHF 500,000

CHF 1,000,000

Single person

CHF 2,185.55

CHF 4,760.45

CHF 14,483.20

38,041.30 CHF

CHF 103,000

Married person

CHF 2,100.40

CHF 4,498.60

CHF 14,052.20

CHF 37,171.15

CHF 101,400

4. Canton of Fribourg, municipality of Fribourg

Withdrawal amount

CHF 50,000

CHF 100,000

CHF 250,000

CHF 500,000

CHF 1,000,000

Single person

986 CHF

CHF 3,260

CHF 17,483

CHF 46,583

CHF 104,000

Married person

762 CHF

CHF 2,723

CHF 16,362

45,362 CHF

CHF 103,100

The different cantonal calculation methods

The taxation of lump-sum benefits from pension plans is calculated differently from one canton to another. There are 4 main calculation methods.

1. Method proportional to the income tax rate

This method applies a fraction of the ordinary income tax rate. In practice, the tax on lump-sum pension benefits corresponds to a portion of the tax that would have been owed if the amount had been regular annual income.

For example, if the tax rate for an income of 250,000 CHF is 15%, the canton will apply 1/5 of that rate (i.e., 3%) to the withdrawn capital. This is why it is referred to as a “reduced tax.” The reduction varies by canton (generally 1/3, 1/4, or 1/5 of the normal rate).

Cantons concerned: Swiss Confederation, Aargau (AG), Appenzell Inner-Rhodes (AI), Geneva (GE), Lucerne (LU), Neuchâtel (NE), Nidwalden (NW), Obwalden (OW), Schaffhausen (SH), Solothurn (SO), Vaud (VD) and Zug (ZG)

2. Pension-rate system

This method is more complex. The canton first converts the capital into a fictitious annual pension using a conversion rate. It then determines the tax rate that would apply to this annual pension according to the income tax scale. Finally, that rate is applied to the total amount of capital withdrawn.

For example, for a withdrawal of 250,000 CHF with a coefficient of 1/25, a fictitious pension of 10,000 CHF is first calculated. If the tax rate for 10,000 CHF of income is 2%, that 2% rate is then applied to the 250,000 CHF of capital.

Cantons concerned: Graubünden (GR), Schwyz (SZ), Ticino (TI), Valais (VS) and Zurich (ZH)

3. Separate tax scale for lump-sum benefits

These cantons have created a specific and independent tax scale for lump-sum pension benefits, completely separate from the regular income-tax scale. This progressive scale is written directly into their cantonal tax law.

This method offers complete transparency, since the scale is specifically designed for capital withdrawals and not derived from other calculations.

Cantons concerned: Appenzell Ausserrhoden (AR), Bern (BE), Basel-Landschaft (BL), Basel-Stadt (BS), Jura (JU) and Zug (ZG)

4. Fixed rate for lump-sum benefits

These cantons apply the simplest method: a fixed tax rate on the entire lump-sum benefit, regardless of the amount withdrawn. The rate remains the same whether you withdraw 50,000 CHF or 1,000,000 CHF.

In these cantons, the slight increase visible in the comparisons comes solely from the federal tax, which remains progressive. At cantonal level, the rate remains fixed.

Cantons concerned: Glarus (GL), St. Gallen (SG), Thurgau (TG) and Uri (UR)

Important notes

How can I save tax on a BVG/LPP withdrawal?

The LPP capital tax is progressive: the larger the lump-sum withdrawal, the higher the effective tax rate. The golden rule is to spread out withdrawals so that each one is taxed at a lower rate.

Another option is to legally establish residence in a canton with favorable tax conditions in the year of withdrawal. The tax domicile must be genuine and recognized by the cantonal authorities. Each canton applies its own tax scale on capital benefits, and the differences are significant: some cantons (Zug, Obwalden, Schwyz) have much lower rates than others (Vaud, Geneva, Neuchâtel).

Withdrawal of the 2nd pillar for cross-border commuters

1. Social security contributions: when they apply

When a French resident is affiliated with the general social security system (unemployment, employment in France, self-employment in France, or receiving a French pension), the withdrawn 2nd-pillar capital is subject to social contributions.

The rate depends on the tax reference income from two years earlier, but in practice, nearly all taxpayers end up at the maximum rate, which pushes the social contribution burden close to 9%.

The amounts to be declared appear in the usual boxes dedicated to foreign-source income, and must be reported gross, without subtracting the withholding tax paid in Switzerland.

2. Taxation of capital in France

There are two mechanisms for taxing capital in France.

1. The flat-rate tax (optional): Swiss pension capital can be taxed through a specific levy of 7.5%, applied after a 10% deduction. This system is advantageous because the taxation is final and separate from the rest of the income. The option is irrevocable.

The sensitive point concerns “fractioning.” The tax authorities consider a split payment to be a voluntary choice to spread the withdrawal of the capital, which would prevent the application of the flat-rate tax.
However, for the Swiss 2nd pillar, cases where the taxpayer genuinely chooses to split the payment are extremely rare. French authorities now consider withdrawals linked to a property purchase or to a standard early withdrawal as each being an independent event, which makes it possible to use the flat-rate tax multiple times for withdrawals triggered by different reasons.

2. The progressive scale (default): If the withdrawal falls into a situation considered as split, the capital is added to the household’s income and taxed according to the standard brackets.
An attenuation mechanism (the quotient) is possible: only 1/4 of the capital is included in the income, and then the additional tax is multiplied by four. This limits the bracket jump but remains less advantageous than the flat-rate tax in most cases.

3. CMU contributions

For cross-border workers or retirees covered by the CMU/CNTFS, the 2nd-pillar capital is included in the income base used to calculate the contributions. In other words, the withdrawal increases the income taken into account by the CNTFS two years later, which can trigger a very high contribution (approx. 8% of the income).

The CNTFS systematically checks declarations: failure to declare capital never escapes automatic correction.

The only possible lever is to change health-insurance regime (switch back to LAMal or enroll in the French mandatory system) before the year in which the CNTFS factors the capital into its calculation.

4. Overall consequences for a cross-border commuter

When a French resident withdraws their 2nd pillar after having worked in Switzerland, the charges add up: Swiss withholding tax, then French taxation (flat-rate or progressive scale), then social contributions, and finally, for those under the CMU, an additional contribution two years later. In the end, the total burden easily reaches around 15 to 16% and can even exceed that level depending on the health-insurance regime, timing of the withdrawal, and tax income.

For a capital of 200,000 CHF, a typical cross-border worker ends up, for example, with a combined tax burden of around 32,000 CHF: about 12,000 CHF of withholding tax depending on the canton, around 13,500 CHF from the French flat-rate tax (after the 10% deduction), plus roughly 6,000 to 7,000 CHF in social contributions if their tax income does not qualify them for the reduced rate. If the person is also affiliated with the CMU, the contribution calculated two years later can add several more thousand francs to the bill.

It is this accumulation, and not a single tax, that explains why withdrawing from the 2nd pillar, once back in France, is far more costly than many anticipate.

Optimizing tax on 2nd pillar capital

1. Stagger the withdrawals

The progressiveness of the tax is the most significant optimization lever. The higher the amount withdrawn at once, the higher the effective tax rate becomes. By splitting the withdrawals, each payment is taxed at a lower rate.

Here are the staggering strategies to set up:

Separate 2nd and 3rd pillar A withdrawals over several fiscal years
For example, first remove the pillar 3a at age 60, then the BVG/LPP at age 65
If you have several 3a accounts, withdraw them over separate years
For couples, coordinate withdrawals of both spouses in separate years
In case of vested benefit accounts, make split between 2 foundations on opening to defer withdrawal

For example, a single withdrawal of 500,000 CHF in Geneva is taxed at around 7.8%, which equals 39,000 CHF. By splitting this amount into two withdrawals of 250,000 CHF spaced one year apart, the rate drops to about 5.7% per withdrawal, for a total of 28,500 CHF in tax. The resulting savings amount to 10,500 CHF.

2. Select withdrawal canton

The tax residence at the time of the withdrawal determines the applicable tax rate. The differences between cantons are substantial, with gaps that can exceed 5 percentage points for the same amount.

However, for a change of canton to be recognized for tax purposes, the move must be genuine and the new residence established before the withdrawal. The tax authorities verify the reality of the relocation (rental contract, municipal registration, deregistration from the previous canton). This strategy requires advance planning and represents a significant personal commitment, but it can generate substantial savings on large capital amounts.

3. Optimize BVG/LPP buy-backs

Buy-ins to the 2nd pillar are 100% deductible from taxable income, which creates an immediate tax saving. This deduction is applied at the marginal tax rate, which can reach 40–45% in some cantons for high earners.

Rules to follow:

Make regular buy-ins during your working life (especially after age 50), while respecting the 3-year waiting period before any early withdrawal. This reduces income tax during working years while building capital that will be taxed more favorably at the time of withdrawal.

4. Choosing the right time for withdrawal

The timing of the withdrawal can influence the overall tax burden, particularly for cross-border commuters or people with variable incomes.

Things to consider:

Withdrawing capital in a year when others revenues are low (particularly in the year following cessation of activity)
For French cross-border commuters: prefer to withdraw before returning permanently to France to avoid cumulative taxation
Coordinate with other events (property sale, inheritance) to avoid unfavorable cumulation

Conclusion

The tax optimization of a 2nd-pillar withdrawal requires early planning, ideally 5 to 10 years before the withdrawal. The potential gains can reach several tens of thousands of francs on a large capital. This approach fits naturally into a broader estate-planning strategy, which considers all your financial and inheritance objectives.

Feel free to consult a financial advisor to develop a personalized strategy tailored to your situation.

Frequently asked questions

When is capital gains tax due?

Capital benefits tax is due when you withdraw assets from your 2nd pillar, a vested benefits account, or your pillar 3a. This withdrawal can occur in several situations:

You're off to retirement and request all or part of the capital instead of an annuity.
You buy or renovate your house with your pension assets.
You become self-employed and leave the occupational pension plan.
You leave definitively Switzerland, under certain conditions.
You receive a capital in the event of divorce or asset sharing.
You become invalid and receive a lump-sum benefit.
You inherit a BVG capital inheritance following a death.

In all these cases, the capital is taxed separately at a reduced rate by the federal government, the canton, and the municipality, and even by the church if you are affiliated with it.

What is the lock-in period after a BVG/LPP purchase?

After a voluntary purchase in your 2nd pillar, you cannot withdraw this amount as capital for 3 years. If you make a withdrawal before the expiry of this period, the tax authorities will cancel the tax deduction you have benefited from and issue a tax reminder.

Can I withdraw my 2nd pillar in several instalments?

The 2nd pillar capital must be withdrawn all at once, however, it is possible to:

Withdraw a portion as a lump sum at retirement and receive the remainder as an annuity
Separate 2nd and 3rd pillar withdrawals over different years
Make an early withdrawal to buy a home, then withdraw the balance at retirement

How are my BVG pension benefits taxed?

Monthly pension : taxed as an ordinary income to declare on your tax return.
Lump-sum payment (lump-sum or early payment) : subject to a capital gains tax, at a reduced rate and separate from income.

What should I do if I receive a lump-sum benefit?

You must announce the received amount to your cantonal tax authorities if you live in Switzerland. The tax will be calculated according to a scale applicable to capital benefits (1/5 of the tax rate).

Which pension contributions are tax-deductible?

2nd pillar (occupational benefits):

Employee contributions and voluntary buy-backs are deductible.
Indicate them on your tax return.

3rd pillar A (tied personal pension provision):

Contributions are deductible in the legal limit, depending on whether or not you are affiliated to the 2nd pillar.

What happens if I leave Switzerland permanently?

If you are leaving Switzerland permanently, you can apply for early withdrawal of your 2nd pillar, but the conditions vary depending on your country of destination:

Departure outside the EU/EFTA: you can withdraw your entire LOB credit
Departure within the EU/EFTA: only the extra-mandatory portion can be withdrawn; the mandatory portion remains locked in until retirement

Tax is deducted at source in Switzerland at the time of withdrawal, in accordance with the tax rates applicable in the canton where your pension fund is located. Please also check the tax treaties between Switzerland and your country of destination to avoid double taxation.

How are inherited BVG/LPP benefits taxed?

When BVG capital is paid out to beneficiaries following a death, two taxes apply:

Tax on capital benefits: calculated as for a conventional withdrawal
Inheritance tax: according to cantonal legislation and relationship to the deceased

In most cantons, the spouse and direct descendants are exempt from inheritance tax. Other beneficiaries (partners, siblings, etc.) may be subject to significant inheritance charges.

2nd pillar: everything you need to know about BVG in 2026

Claire Fivaz — Sat, 10 Jan 2026 14:15:02 +0000

What is the 2nd pillar?

The 2nd pillar, also known as occupational pension or LPP (Law on Occupational Pensions), is a mandatory insurance system in Switzerland for employees whose income exceeds a certain threshold. It is part of the three-pillar system. Its purpose is to supplement the benefits of the AVS, ensuring a sufficient income in retirement, or in case of disability or death. Funded jointly by the employer and the employee, it is based on the principle of individual capital accumulation: each insured person saves for their own retirement.

Who contributes to the 2nd pillar?

Not all employees in Switzerland are automatically enrolled in the 2nd pillar. Mandatory affiliation depends on several conditions:

Even if you do not meet the standard conditions, it is possible to join the 2nd pillar on a voluntary basis. For example, an employer may choose to cover an employee whose income is below CHF 22,680. Likewise, self-employed individuals or those on short-term contracts can opt to contribute, although it is not mandatory. From age 24, contributions also start to build up savings for retirement.

How do 2nd pillar contributions work?

Contributions to the 2nd pillar (LPP) are calculated on the annual salary says coordinated (i.e. after deduction of a fixed amount known as the coordination deduction, CHF 26,460 in 2026). Contributions are shared between employer and employee, with the employer paying at least half (except for the self-employed, who must pay the full amount). Contributions comprise several components, including retirement savings, risks and expenses.

1. Old-age contribution

Retirement credits represent the savings portion of the occupational pension plan, and the interest rate on these credits is set by the employer. increases with age to gradually build up retirement savings. Here is an overview of retirement credits in 2026, depending on the age of the insured in the compulsory portion:

10%

15%

18%

2. Risk premiums

Risk premiums finance the coverage against the risks of disability and death. This means that if an insured person becomes disabled or dies before reaching retirement age, the pension fund will pay a disability pension or a survivor’s pension (to the spouse, registered partner, or children). These premiums vary depending on age and gender.

3. Contribution to the LPP Guarantee Fund

Each pension institution must pay a contribution to the LPP Guarantee Fund, which secures the statutory minimum benefits in the event of a pension fund’s insolvency. This mechanism protects insured persons from losing their retirement savings if their fund goes bankrupt. The fund also intervenes in cases of restructuring or exceptional situations, such as fund mergers.

What are 2nd pillar benefits?

The 2nd pillar also protects insured persons and their families against the risks of disability or death, as well as the inevitable risk of old age. Benefits are therefore paid out based on different life events, in the form of pensions. Here is a brief overview of the main benefits provided under the LPP:

Paid from the legal retirement age, the pension is calculated based on the accumulated retirement assets, using a conversion rate of 6.8%.

It is possible to withdraw 1/4 of the mandatory LPP assets as a lump sum. Some pension funds allow the full capital to be withdrawn.

20% of the retirement pension is paid per child, up to the age of 18 or 25 if the child is in education or training.

If the insured becomes disabled (according to the DI), they receive a pension based on the accumulated assets plus future retirement credits, without interest.

20% of the disability pension is paid per child, up to age 18 or 25 if in education or training.

The surviving spouse receives 60% of the (retirement or disability) pension if the marriage lasted at least 5 years and the spouse is at least 45 years old, or if there are dependent children. Otherwise, a one-time payment equal to 3 annual pensions may be granted.

20% of the (retirement or disability) pension is paid to each child until age 18, or 25 if in education or training.

What is a vested benefits account?

A vested benefits account is used to preserve your 2nd pillar assets when you leave a pension fund without immediately joining another one. It is a mandatory transitional solution to maintain your occupational pension rights.

This situation arises in particular if you:

The accumulated assets remain blocked, protected, and continue to earn interest. You can transfer them either to a vested benefits bank account or to a vested benefits insurance policy. This way, you maintain your link to the pension system while waiting for a new affiliation or another event (retirement, buyback, or early withdrawal under certain conditions).

How can I improve my 2nd pillar benefits?

Performing buying into your pension fund is the most effective way toimprove your services from the 2nd pillar. These payments volunteers allow you to make up any contribution gaps, for example after a change of job, unpaid leave or a reduction in your working hours.

The amount purchased directly increases your retirement assets, which means a higher pension when you retire. In addition to this advantage, purchases are tax-deductible, which means you can reduce your taxable income. However, certain conditions must be met, including a three-year waiting period before a lump-sum withdrawal can be made if you have made a purchase.

How do I withdraw my 2nd pillar?

The capital in your 2nd pillar can be withdrawn as follows certain conditions:

1. Retirement

You can request payment of all or part of your retirement capital in the form of a lump sum, in accordance with the rules of your pension fund. A formal request must be made several months in advance.

2. Permanent departure from Switzerland

If you leave Switzerland for a country outside the EU/EFTA, you can withdraw your entire 2nd pillar. If you are moving to an EU/EFTA country, only the amount in excess of your compulsory pension can be withdrawn, with some exceptions.

3. Access to property

You can use your credit balance to finance the purchase of your principal residence, either by early withdrawal or as a guarantee (EPL - encouragement to home ownership).

4. Start of self-employed activity

If you leave your employment status to become self-employed in Switzerland, you can request payment of your pension capital.

5. Small amount

If your vested benefit credit is less than one year's contributions, you can apply to withdraw it.

Taxation of withdrawals

Each withdrawal is subject to tax at a rate of reduced rateseparate from ordinary income, to 1/5 tax rate. It is therefore advisable to plan this operation carefully.

Dividing the 2nd pillar in the event of divorce

In the event of divorce in Switzerland, the 2nd pillar assets accumulated during the marriage are in principle shared equally between the spouses, regardless of the division of assets or matrimonial property regime. This division concerns only the termination benefits (vested benefits) accrued during the couple's life together.

The amount is calculated as of the date on which the divorce proceedings are initiated. Each spouse is entitled to half pension assets saved by the other during the marriage. If one of the spouses has made little or no contributions (e.g., in the event of a career break to raise children), he or she can recover part of the other's assets in the form of a compensatory allowance.

The amount transferred is paid either into the beneficiary's pension fund or into a vested benefits accountif he is not immediately affiliated to a fund. There are exceptions (e.g. in the case of a different agreement validated by a judge, or where the pension is already in payment), but the principle of sharing remains the rule under Swiss law.

2nd pillar pensions in the event of death

If you are married or registered partnership, your surviving spouse or partner is entitled to a pension in the event of your death. This entitlement exists if the surviving spouse or partner is at least 45 years old, the marriage or partnership lasted at least 5 years, or if he or she is supporting at least one child.

If none of these conditions is met, a one-off allowance corresponding to three annual annuities is paid. The children orphans are also entitled to a pension up to the age of 18, or up to the age of 25 if they are in training.

Types of systems in the BVG

In Swiss pension funds, there are two main models for calculating benefits. defined contribution plan and the benefit plan. Some institutions also opt for a mixed formula, called duoprimat. Here's what you need to know.

Defined contribution plan

In this system, it is the amount of the contributions paid (by the employer and the employee) which determines the future benefits. Accumulated savings (known as retirement savings) earn interest at a minimum rate (set each year) and, on retirement, are converted into a pension at a conversion rate (currently 6.8 % for the mandatory BVG portion).

Primacy of benefits

In this model, the annuity amount is defined in advance by percentage of final salary insured. So it's not the accumulated savings that count, but the level of income before retirement. This model is becoming very rare in Switzerland, with only 2 % pension funds still using it.

Duoprimat

Today, many funds use a hybrid model, the duoprimat, which combines the two systems. Old-age benefits (retirement pension) are calculated on a defined-contribution basis, while risk benefits (death, disability) are calculated on a defined-benefit basis.

Frequently asked questions

How does the second pillar work?

The 2nd pillar supplements the AHV and helps maintain approximately 60% income prior to retirement. It is financed by contributions shared between employee and employer.

When can you withdraw your second pillar?

To the retirementor earlier in some cases: definitive departure from Switzerland, purchase of a home, start of self-employment or amount too low.

How do I know how much I have in my 2nd pillar?

Every year, your pension fund sends you an annual pension certificate indicating your pension assets and expected benefits.

Who contributes to the 2nd pillar?

All 17 years old or more whose annual income exceeds CHF 22,680 (in 2025). The self-employed can join voluntarily.

How do I unlock my 2nd pillar in Switzerland?

You can unlock your 2nd pillar in Switzerland when you retire or earlier to buy a home, become self-employed or leave the country permanently.

3rd Pillar Descartes: Product Review and Comparison

Claire Fivaz — Wed, 07 Jan 2026 10:50:48 +0000

What is the 3rd pillar?

1. Pillar 3a (tied pension provision): mainly intended for retirement provision, it offers significant tax advantages but imposes certain withdrawal conditions. Amounts paid in are tax-deductible up to the statutory limits (CHF 7,258 for employees affiliated to a pension fund in 2026).

2. Pillar 3b (unrestricted pension provision): more flexible, allowing more flexible use of accumulated savings. UBS offers a wide range of products, including investment plans, mutual fund accounts, securities custody accounts and term deposits.

3rd Pillar A solutions from Descartes

Descartes proposes a flexible and transparent pillar 3a which enables customers to save while investing, with the aim of supplementing their retirement provision. This is pure savings, with no built-in risk hedging, and returns are dependent on the financial markets.

Flexibility and access:

Payments from CHF 10: no minimum deposit required.
Stop payments at any time: management remains entirely under the customer's control.
Easy transfer: assets can be transferred from other 3a accounts or vested benefits accounts.
Two types of investment: active or passive management.

Stock models and quotas

Descartes offers several investment models to suit different risk profiles, with share quotas ranging from 20 % to 100 %. Portfolios include Swiss and international equities, bonds, real estate funds, gold, and for certain optimized profiles, a strategic allocation to the bitcoin.

Low (20%)

Moderate (40%)

Medium (60%)

High (80%)

Very high (99%)

0.67% per year

0.66% per year

0.65% per year

0.67% per year

0.64% per year

0.67% per year

0.70% per year

0.73% per year

0.76% per year

These allocations allow customers to choose the level of risk they are comfortable with, while having a clear and transparent view of where their money is going.

Descartes portfolios

Actively managed portfolios may contain between 20 % and 100 % of equities, depending on the chosen risk profile. The remainder of the portfolio may be invested in bonds, cash and alternative investments to diversify and stabilize returns.

These portfolios mainly use Swisscanto funds, with a significant allocation to Swiss equities, often in the medium or majority. Most of the funds selected are responsible, respecting environmental, social and governance criteria.

Examples of funds used:

25 CHF

available

Offer when opening your 3a at Descartes

Invexa has negotiated a special offer for its customers with partner Descartes for the opening of a 3a.

Historical performance

For the passive model with 100 % shares, the average annual yield over the past ten years has varied: for example, +26.39 % in 2019, -16.68 % in 2022, and +11.07 % in 2025. Past performance is no guarantee of future returns.

Additional costs

If you withdraw your pension funds under certain conditions (early retirement, emigration, home purchase), the foundation may apply certain fixed fees.

Investment fees depend on the type of solution chosen: simple accounts or securities portfolios, with transparent administrative and transaction fees. Contractual partners and distributors may receive an issuing commission, deducted directly from the account.

Descartes' 3a pillar highlights

Maximum flexibility: payments from CHF 10, can be stopped or resumed at any time.
Intelligent diversification: Swiss and international equities, bonds, real estate, gold, and even Bitcoin in certain active models.
Clear, competitive charges: no hidden fees, all commissions and costs are published.
Quick, easy opening: account opened automatically via Lienhardt & Partner Privatbank Zurich.
Possibility ofonline subscription without any appointment

Weaknesses of the 3a pillar in Descartes

Conclusion

Descartes' Pillar 3a is ideal for those who want to take control of their retirement savings, enjoy total flexibility and invest in a transparent, diversified way. It's a solution for investors who accept market risk and want higher potential returns than traditional savings, while retaining the ability to adjust their portfolio at any time.

Frequently asked questions

What types of portfolios are available?

Assets : dynamic allocation, up to 100 % in equities, including bonds, real estate and gold.
Liabilities : follows Swisscanto indices to replicate the markets, with a stable allocation between equities, bonds and other assets.

What are the minimum and maximum payment amounts?

Minimum amount : CHF 10 per payment.
Flexibility : you can stop or resume payments at any time.
Maximum amounts : set by Swiss law, depending on whether you are employed or self-employed.

Is my capital guaranteed?

No. Descartes' Pillar 3a is pure savings, invested in securities and funds. The value may fluctuate with the markets.

Is it risky to invest your Pillar 3a in equities?

The key is to adjust the allocation to your risk profile and gradually reduce the equity portion as you approach retirement.

How do I open an account?

To open a 3a account with Descartes, you must:

Completing the risk profile
Choosing a portfolio and stock allocation
Provide personal information and digital identification
Sign electronically (QES signature)

The account is opened automatically via Lienhardt & Partner Privatbank Zurich, and you will immediately receive your IBAN.

Pillar 3a in Switzerland: a complete guide to tied pension provision (2026)

Claire Fivaz — Tue, 06 Jan 2026 08:00:49 +0000

Pillar 3a at a glance

Pillar 3a allows you tosave for retirement while enjoying a tax deduction yearly.
Ceiling 2026: CHF 7,258 for employees affiliated to the 2nd pillar / up to 36,288 CHF (20 % of income) for the self-employed.
Any person exercising a gainful activity subject to OASIincluding cross-border commuters.
Withdrawal possible between -5 and +5 years retirement or earlier under certain conditions.
Withdrawn capital is taxed separately at reduced rate, according to the canton.

What is Pillar 3a?

Introduced into the Constitution in 1972, Pillar 3a represents the tied individual pension plans. It is characterized by its advantageous tax framework and its main aim is to preparing for retirement. This private pension plan represents a voluntary savings which completes the first two pillars (AHV and pension fund) in return for tax deductionsThis plan has restrictions on withdrawals. Accumulated funds can only be withdrawn in the event of retirement, disability, death, or for the purchase of a first home, under certain conditions.

Diagram: The role of Pillar 3a in the Swiss pension system

Who can open a linked pension account?

The opening of a Pillar 3a account or policy is open to all Swiss residents, whether employed or self-employed. you must be gainfully employed and earn a income subject to AHV. Pillar 3a is also open to frontier workers.

What are the tax benefits of Pillar 3a?

The contributions paid are deductible from taxable income, which helps reduce annual taxation. In addition, upon withdrawal, the capital is taxed at a reduced rate — at one-fifth of the normal income tax.

Furthermore, during the term of the contract, no wealth tax will be levied, allowing capital to grow without additional costs.

Chart: Cumulative tax savings from Pillar 3a contributions

Over the course of a year, you could potentially save CHF 2,240 in taxes. Over five years, this would represent approximately CHF 11,200 in tax savings.

Scenario: single person living in Geneva with a gross income of CHF 100,000.

Pillar 3a contribution limits

In 2026, it will be possible to pay out amounts in tied personal pension plans:

Possible shapes

There is a wide range of options within tied pension provision. We generally distinguish between two main categories: Pillar 3a with a bank and Pillar 3a with an insurance company.

At the bank

In a bank, several products are available under the tied pension scheme (pillar 3a). On one hand, there is the dedicated savings account, which generally offers a guaranteed interest rate and high capital security, but provides limited returns.

On the other hand, investment products, such as investment funds or ETFs, offer the possibility of achieving potentially more attractive returns by investing in a diversified portfolio. However, they carry risks linked to market fl

In insurance

Visit insurance, pillar 3a offers products designed to combine savings and protection. Life insurance contracts enable you to invest in a product that offers a capital guarantee while including coverage in the event of death or disability.

There are many forms, such asfund-linked endowment insurance in case of life, thedisability insuranceetc. Remuneration may vary according to the performance of the chosen investments, although some contracts offer guaranteed rates. In all cases, we strongly recommend that you compare 3rd pillar solutions in detail, given the many options available on the market and the variation in fees from one provider to another.

Expenses: insurance VS bank

A good 3a unit-linked insurance policy is usually cheaper than a pillar 3a bank over the long term. In insurance, however, fees are deducted at the beginning of the contract. This is something to bear in mind if you wish to withdraw early.

Diagram: Pillar 3a banking and insurance investment opportunities

Under what conditions can I make a withdrawal?

The early withdrawal conditions of Pillar 3a are strictly regulated to ensure that savings remain earmarked for pension provision and retirement. Here is a breakdown of the various situations in which it is possible to make an early withdrawal, either partially or in full:

1. Retirement age

Retirement benefits can be paid out as early as 5 years before the insured person reaches the standard OASI retirement age (“reference age”), and at the latest five years after.

2. Purchase of 2nd pillar contributions

Advance withdrawal is permitted when Pillar 3a savings are used to buy back contributions in a 2nd pillar pension scheme. This option enables you to top up or regularize your occupational pension capital in the event of retirement.

3. When receiving a full DI/IV pension

If the client receives a full disability pension from the DI and the risk of disability is not covered by the pension plan, the early withdrawal can be activated.

4. Change of self-employed activity

Early withdrawal is also possible for the policyholder who changes to a new self-employed activity. This allows access to the necessary liquidity to support their professional transition.

5. Starting a self-employed business

If the pension fund member sets up their own business, they can apply for early withdrawal. The aim is to provide financial support when starting a self-employed or entrepreneurial activity, which is often crucial in the early stages of setting up a business.

6. Final departure from Switzerland

If the policyholder permanently leaves Switzerland, they may make an early withdrawal of their funds. This provision is intended to allow the insured person to access their savings when settling abroad.

7. Home purchase or mortgage repayment

Early withdrawal is also possible when the funds are used to purchase a home for one's own needs or to repay mortgage loans. This condition facilitates home ownership by allowing insured persons to use their savings in a practical way for a real estate project.

Get your personalized comparison

Fill in our Pillar 3a quotation request form and one of our pension experts will contact you shortly with a quote. customized, no-obligation analysis.

How many 3a accounts can I have?

There is no legal limit to the number of 3a accounts you can hold. In practice, you may open several accounts — for example, a bank account and a life insurance policy.

However, the annual contribution ceiling remains the same and applies to the total of all your payments, which means that the total amount deposited cannot exceed the ceiling set by law.

New: 3a redemptions

In 2026, it will be possible to make subsequent Pillar 3a surrenders for the 2025 tax year of CHF 7,258 (ceiling).

Succession in 3a

When you die, your Pillar 3a assets do not follow traditional inheritance rules. It does not enter directly into the estate: it is paid out in priority to the beneficiaries. statutory beneficiaries or by the clause you have defined. Inheritance rules in 3a are governed by the’OPP3 (Ordinance on tax deductions for contributions to recognized pension schemes). In practice:

You can specify in your contract how this capital is to be distributed among your beneficiaries. This avoids conflicts and ensures that your wishes are respected. Please note: if your designations affect the reserved portion of your legal heirs, they may request a reduction. In this case, the surrender value of your 3a is included in the calculation of the estate. From changes in inheritance rules in 2027.

Pillar 3a vs. 3b: which to choose?

Two variants exist in the 3rd pillar (private pension provision). Pillar 3a is a linked retirement savingsoffering substantial tax deductions. Funds are locked in and can only be withdrawn in the event of specific events (retirement, home purchase, disability, permanent departure from Switzerland).

The pillar 3balso known as unrestricted pension planis, for its part, a additional savings more flexible, with no strict constraints on use. Although it benefits from fewer tax advantages when taken out as insurance, it allows funds to be used freely for a variety of projects. In short, making the difference between a 3a and a 3b flexibility and tax deductions to exploit.

Which Pillar 3a is right for you?

Choosing the best Pillar 3a in Switzerland depends on your profile, age and pension needs. To help you quickly identify which solution best suits your situation, we've created a comprehensive matrix with detailed explanations for each profile.

Decision table

3a Insurance + 3a Bank (funds)

Disability due to illness

Protection + Performance

Priority 3a insurance + 3a Bank (funds or guaranteed capital)

Death + Sickness disability

Family protection

Assurance 3a (funds)

Death + Sickness and accident disability

Protection + Taxation

Bank 3a (funds or interest-bearing account depending on horizon)

Impossible in Switzerland

Flexibility + Taxation

Bank 3a only (interest-bearing account or low % shares)

Too expensive

Capital preservation

In practice, there is no universal Pillar 3a solution. The choice mainly depends on the’age, the family situation, from professional status and the’investment horizon. A combination of banking and insurance solutions can often optimize flexibility, protection and tax benefits.

A personalized analysis is essential to adapt your pension strategy to your actual needs, and to avoid making inappropriate decisions over the long term.

We recommend

Subscribing to a 3a pillar is an important decision that deserves careful analysis. It is essential to define your profile and needs before selecting and comparing the various solutions available. The fees and conditions can vary significantly from one provider to another, which can have a major impact on your long-term returns.

Frequently asked questions

What is Pillar 3a?

Pillar 3a is a form of tied individual pension provision in Switzerland. It allows you to save for retirement while benefiting from tax advantages. It is subject to strict conditions regarding beneficiaries, amounts paid in, and withdrawal possibilities.

Who can contribute to Pillar 3a?

Anyone who exercises a gainful activity in Switzerland and pays contributions to the AVS can contribute to pillar 3a. This includes:

Employees,
Cross-border commuters,
Independents,
Unemployed persons under certain conditions.

What is the purpose of Pillar 3a?

Pillar 3a allows :

To supplement AHV and BVG pensions,
Reduce taxable income (thanks to tax deductions),
To finance a real estate project or a transition to independence.

Is Pillar 3a taxed on exit?

Yes, but at a reduced rate of 1/5 of the tax rate, separate from other income.

Until when can I pay into 3a?

You must make Pillar 3a payments no later than December 31 to be tax deductible in the current year.

Can Pillar 3a be inherited?

Yes. In the event of your death, your 3a credit balance is transferred first to surviving spouse or registered partner, then to the children. Failing that, other relatives may be beneficiaries, depending on the law and your beneficiary clause.

How much can you contribute to Pillar 3a in Switzerland?

Visit 2026the maximum amount is CHF 7,258 per year for employees affiliated to the 2nd pillar. Self-employed people without a 2nd pillar can contribute up to 20 % of their income, with a ceiling of CHF 36,288 per year.

How safe is Pillar 3a in Switzerland?

Yes. 3a assets are strictly regulated. Placed with approved insurance companies or banks, they benefit from legal protection and are considered highly secure savings for retirement.

How much can I transfer into a Pillar 3a?

You can transfer the entire balance of your pillar 3a account to another (for example, from a bank to an insurance company) without tax consequences. The transfer amount is unlimited, but fees vary from one provider to another.

What's the best 3a pillar in Switzerland?

There is no "best" universal Pillar 3a. A 3a bank account is more flexible and less costly, while 3a insurance combines savings and protection (death, disability). The choice depends on your age, family situation and risk tolerance.

Generali 3rd pillar: Full comparison of 3a/3b solutions in 2026

Claire Fivaz — Mon, 29 Dec 2025 07:43:45 +0000

What is the 3rd pillar?

Before exploring the products, it's crucial to understand the distinction between Pillar 3a and Pillar 3b, as this difference will determine your entire pension strategy.

The Pillar 3a, also known as tied pension provision, is the most attractive tax benefits. Payments are tax-deductible, reducing your annual tax burden. At 2026, an employee with a pension fund can deduce to CHF 7,258, while a self-employed person without a 2nd pillar can receive up to 20% of net income, with a ceiling of CHF 36,288. For the entire duration of the contract, the accumulated capital is not subject to tax.’wealth tax, and at the retirement, It benefits from separate, reduced taxation. This advantageous taxation comes with constraints: the capital remains locked in until retirement, with a few exceptions. exceptions as the’purchase of a principal residence or leaving Switzerland for good.

The 3b pillar, or flexible pension, offers complete flexibility. You can contribute any amount you choose, without a ceiling, and withdraw your capital at any time according to your needs. This freedom comes at the cost of no annual tax deduction, although the capital is generally exempt from tax at the time of withdrawal. The 3b also allows you to freely designate your beneficiaries, unlike the 3a, which imposes a legal order of succession.

Generali's 3rd pillar solutions

Generali structures its pension offering around several product categories, each designed to meet distinct objectives.

Pillar 3a Flex Digital: the online solution

The 3a Flex Pillar represents Generali’s digital banking solution. Fully managed online through the client portal, this product allows you to make contributions with complete flexibility, as much and whenever you want, up to the annual tax-deductible limit.

In case of loss of earnings, Generali contributes up to 3,000 CHF per year to your 3a pillar, ensuring the continuity of your savings. This product is particularly suitable as a complement to an existing pension solution or as a standalone option for your 3a pillar.

Combined savings and protection solutions

The Previdenza Pension and Previdenza Flex Pension are unit-linked mixed insurance policies with periodic premiums. These solutions allow you to save regularly while benefiting from protection in case of death or disability. The Flex variant offers greater flexibility in managing the balance between security and returns.

Capital accumulation with death cover (periodic premiums)

The Scala Pension Insurance and Flex Pension Insurance represent two options for those who wish to build capital while ensuring a death benefit for their loved ones. Available in both 3a and 3b, these mixed products always include death coverage.

Scala offers a structured approach with a guaranteed death benefit, while Flex allows you to freely allocate premiums between a security account (guaranteed) and a growth account (invested in funds). Coverage of premiums in case of loss of earnings remains optional for both products.

Pure savings solutions (capitalization)

The Performa Pension Insurance stands out for its 100% savings focus, without automatic death coverage. This capitalization product includes, by default, coverage of premiums in case of loss of earnings.

Specifically, if you become disabled, Generali continues to pay the contributions on your behalf, thus ensuring the continuation of your savings. This feature makes Performa an attractive option for those who want to focus on capital accumulation while protecting against income loss. Available in both 3a and 3b, this product is particularly suitable for individuals who start their pension planning early.

Risk coverage solutions

For those seeking only a pure risk life insurance, Generali offers PREVISTA, a term life insurance with either increasing or decreasing insured capital. This solution allows the death coverage to be adapted to evolving needs (for example, decreasing capital in parallel with mortgage repayment).

The Loss of Earnings Insurance complements this offering by providing specific protection against income loss, with the option for premium waiver.

Provisions for children (3b only)

The KIDS Child Pension allows you to plan for your children’s future. Available only in 3b pillar, this product offers either an income in case of loss of earnings or a unit-linked mixed insurance with periodic premiums. This solution enables parents to build capital for their child while providing financial protection.

Investment options: available funds

Generali offers several investment plans to adapt the level of risk and return to your profile. The Multi Index 100 fund, with an equity allocation of 89.3%, has historically been the best performer, with an average annual return of 8% since its launch in 2016. Its TER (Total Expense Ratio) of 0.26% remains competitive. For 2024, this fund has recorded a year-to-date performance of 16.0%.

ChatGPT said: The other Multi Index funds (40, 30, 20, 10) offer decreasing equity allocations for more conservative profiles. Generali also offers Tomorrow Invest 100, a sustainable investment plan focused on Swiss companies committed to an ESG (environmental, social, and governance) approach.

Beyond these strategic plans, the insurer offers a full range of funds: GENERALI Short Term Bond Fund, Bond Fund CHF, Equity Fund Switzerland, ESG Equity Fund, Multi Asset Fund, and several other options allowing for geographic and sector diversification.

Pricing structure and fees

In the case of unit-linked life insurance, fees depend in particular on the age at which you take out the policy. The later you take out a policy, the higher the risk and closing costs, since the probability of a claim increases with age. A policy taken out at 25 will always cost less than an identical policy taken out at 45. This pricing structure makes it particularly advantageous to start saving early, even for modest amounts.

The fund management fees vary depending on the chosen plan, with TERs ranging from 0.26% for Multi Index 100 to higher levels for certain actively managed funds. These fees directly affect the net return of your savings over the long term.

Generali 3rd pillar comparison

Digital banking

Yes (contribution CHF 3,000/year)

Combined insurance

Yes (guaranteed)

Optional

Capitalization

Yes (included)

Flexible endowment insurance

Yes (guaranteed)

Optional

Combined insurance

Yes

Variable

Combined insurance

Yes

Variable

Single premium (3b)

Yes

Not applicable

Pure risk (3b)

Yes (temporary)

Not applicable

Junior provident scheme (3b)

Variable

Compare 3rd pillar products

Receive offers along with an objective assessment within 24 hours: advantages, limitations, and relevance according to your age, professional situation, and savings goals.

Conclusion

Generali indeed offers a wide range of solutions for the 3rd pillar in Switzerland, ranging from simple digital products to mixed insurance policies. Each product addresses needs such as pure savings, family protection, management flexibility, or a combination of multiple objectives.

Before subscribing, it is recommended to compare several market offers and consult an independent financial advisor to ensure that the chosen solution truly fits your personal situation and long-term goals. Subscribing to a 3a pillar represents a commitment over several decades; taking the time to choose wisely is an investment in itself.

Frequently asked questions

Can I combine several Generali products?

Yes, it is possible to subscribe to multiple 3rd pillar contracts, within the annual tax-deductible limit for 3a. For example, you could combine a 3a Flex Digital Pillar with a Scala insurance to maximize both savings and protection.

What happens if I can no longer pay my premiums?

Depending on the product you choose, you usually have several options: reducing the premium amount, temporarily suspending payments, or converting the contract into a paid-up policy. The exact conditions depend on the product and the general terms and conditions.

Can I transfer my 3rd pillar from another insurer to Generali?

Yes, transferring a 3a pillar to another institution is possible, although some insurers apply transfer fees or surrender penalties. For 3b insurance, the transfer is more complex, as it often involves redeeming the existing contract (with potential losses) and then subscribing to a new one. It is important to calculate the costs carefully before making such a transfer.

What returns can we expect?

Historical fund performances (such as the 8% p.a. of the Multi Index 100) are indicative but not a guarantee of future performance. Financial markets fluctuate and results can vary considerably from one year to the next. These figures are used only to understand the fund's risk profile and track record.

What's the difference between Scala and Flex?

Both products offer a guaranteed death benefit and are available in 3a/3b, but Flex stands out for its management flexibility. With Flex, you actively allocate your premiums between a security account (guaranteed) and a return account (funds), with the option of adjusting this allocation during the term of the contract (from 10% to 95% in funds). Scala takes a more traditional approach, with a defined investment plan. Flex is more suited to people who wish to maintain active control over their investment strategy.