Newbie question on taxes upon withdrawal

Hi all,

About Pillar 3 (and 2) withdrawals (at retirement age or upon leaving Switzerland),
do we pay taxes only on the capital we invested, or on the returns as well (might be a large sum after 40years invested in the market for the pillar3)?

If I understand correctly, we don’t usually pay taxes on capital gains in Switzerland but this might be different in Pillar2/3 accounts?

On the value of the account you withdraw including returns

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I see thanks. So depending on the marginal tax rate, it’s not necessarily a no brainer to fill up the Pillar3a


Keep in mind that you also don’t get taxed on dividends inside the pillar 3a accounts.

You should also have 5 accounts and redeem them over a period of 5 years to minimize the withdrawal taxes. 5 accounts instead of 1 because you can only withdraw the full amount.

With the solutions we have today (possibility to have almost 100% equity in 3a) it’s mostly a no brainer, except if you pay really low taxes and are able to generate higher returns outside of 3a.


It is a no brainer. Withdrawal taxes that you pay are much lower than tax deductions that you save. Also look at this

Also: saving CHF 2000 p.a. at young age and investing this money over 30-40 years, I wouldn’t care if my marginal tax rate is 3% higher in the future or not. I guess my 2000 invested will return will be somewhere around 5000 at least when I turn 60.