Pillar 3a: the most effective tax lever for newcomers
Deposit funds, reduce your tax bill and build up long-term equity for your own home – that’s how pillar three works.
Redaktion swissexpat · 7 July 2026 · 6 min
Hardly any financial instrument is as attractive to newcomers as pillar 3a – and hardly any is so often overlooked in the first year.
How pillar 3a works
You pay in up to the maximum amount each year (as an employee with a pension fund), and every Swiss franc reduces your taxable income. For middle incomes, that quickly means CHF 1,500–2,500 less tax per year. For those taxed at source, the pillar 3a payment is one of the main reasons to apply for subsequent ordinary assessment.
Bank, app or insurance?
The rule of thumb: a pillar 3a savings account or a pillar 3a securities app for flexibility and low fees; over the long term, a broadly diversified pillar 3a securities account outperforms the interest-bearing account by a clear margin. With pillar 3a insurance policies from insurers, the key is to do the maths carefully, because they tie you in for the long term and can be costly to exit.
Pillar 3a for expats – the special points
- Open several pillar 3a accounts: this allows staggered, tax-efficient withdrawals
- Early withdrawal is possible for your own home (WEF) and on definitive departure
- On departure, the withdrawal is taxed at source – choose the provider’s canton wisely
Pillar 3a is doubly beneficial: it cuts your tax bill today and builds tomorrow’s equity for your home.
Source: BVV3. Status July 2026. No investment advice.
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