As most things, depends on the canton. In ZH for example you are expected to declare every transaction (and the online tool, which is pretty good, then calculates everything automatically for you). However, the tax office largely tolerates when people just aggregate everything into a single line and report the total assets held at a broker at the end of the year and the total dividends received. I personally find it easier to list transactions, but it’s a matter of choice
It may be worth mentioning here that the imputed rental value will be abolished as per the vote a week ago. It will take at least a couple of years for this change to be effective, though.
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Another thing: if you decide to make tax-deductible contributions to third pillar 3a (highly recommended) and second pillar, pension fund (depends) for 2025, you have to do it before the end of 2025 to profit from the deduction of taxable income earned in 2025.
Either one makes you eligible, or maybe even makes it mandatory for you, to file a regular tax declaration for 2025.
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Thank you rez, very nice explanation.
I was not aware of any of this, and I find this story about the imputed rent quite absurd. It is basically saying that if you own a home, you are saving money because you don’t pay rent to someone else, and therefore this benefit is considered equivalent to income. Quite a unique interpretation. Happy to hear that they are going to abolish it.
Ok, so you have to report just the total amount and the dividends received. However, if the ETFs are accumulative, what to do in this case?
I moved to Switzerland with a one-year contract, so I hadn’t contributed to the 3a pillar until now. However, I am now planning to remain in the country for 3–5 years (or more), and I’m starting to look into it and learn more about how it works.
From what I understand, contributions to the 3a pillar are tax-deductible, meaning that portion of income isn’t taxed. Are there other advantages to contributing?
I’m using this post to ask all the questions that come to mind. I know many of the answers can be found online, but I really appreciate hearing personal experiences and perspectives. Thanks a lot to everyone for the help.
If you hold accumulating ETFs, I don’t think a single summary line per broker will work, unless you get an eSteuerauszug from your broker (available at Swiss brokers such as Saxo).
You could still manually enter a single line per position. The taxable income of lots of funds you can look up at ICTax. Tax software uses the same database to calculate taxable income if you enter all transactions. I do the latter and let the tax software handle the calculation.
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Dividends (and interest) within the pillar 3a accumulate tax-free and pillar 3a is exempt from wealth taxes. It’s also protected from debt collection etc.
You do have to pay capital withdrawal taxes on the final amount but the tax rate for that is typically much lower than the income taxes you saved.
If you withdraw pillar 3a when leaving Switzerland, it can get a bit more complex as it depends on how it’s taxed in the other country, if you don’t manage to withdraw pillar 3a while still being a Swiss tax resident.
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Hi everyone,
I moved to Switzerland in January on a B permit. I’m currently taxed at source, but I plan to request to file a full tax return since I own a property abroad.
Given that, I’m now considering opening a Pillar 3a account. I understand the tax advantages and that most people in Switzerland make use of it. However, I’m unsure where to open my first account.
Since I already have a bank account with Yuh, I’m tempted to open it there, but I’ve also seen many recommendations for Finpension, among others.
What would you suggest? How to choose? Any advice or personal insight would be appreciated.
Thank you.
Finpension.
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Same here. I really like their clean look and transparency about no hidden fees.
Viac might be interesting if are considering a mortgage.
Thanks a lot for the quick replies!
What makes Finpension stand out compared to other Pillar 3a providers? Is it mainly due to their lower fees, or are there other advantages as well?
Hi everyone,
I moved to Switzerland in January on a B permit. I’m currently taxed at source, but I plan to request to file a full tax return since I own a property abroad.
As this will be my first time filing a tax return in Switzerland, I’m considering getting help from a tax advisor. Do you have any recommendations on which platform or service to use, and how to go about it? Does the choice depend on the canton I live in (I’m currently in Solothurn)?
Any advice or personal experience would be greatly appreciated.
Thank you!
If you might leave Switzerland for pension or return home you probably want to choose finpension because they are located in Canton of Schwyz (lower taxation, when you close your pillar 3a and payout).
You might wanna check out MP’s article of pillar 3a https://www.mustachianpost.com/best-3rd-pillar-in-switzerland/
It help a lot when rhe same question came up to my mind last weekend.
I will open at first my pillar 3a with VIAC.
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This is a very useful source, I will read it. Thank you.
I have read that people often open multiple pillar 3a accounts.
Is it possible to open one account say at VIAC and one at Finpension?
Yes. But you can also create five accounts at viac or finpension. My advice: Use one provider, because keep it simple, stupid.
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Probably not at first (others might have more experience and can answer this question better).
But in the long term definitely because of the “Einlagensicherung” which is caped at chf 100’000 per person/bank.
What do you mean by “caped at 100k CHF”?
Maybe I should read the source you mentioned first..
This is only relevant if you hold money, but in most (not all) cases you want to invest. It also takes years to accumulate CHF 100,000 in your 3a account (assuming you are not self-employed and can pay in a maximum of CHF 7258 per year). So it’s not relevant when you’re just starting out.
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