Year-end tax optimization in Switzerland: 6 levers to activate before December 31st
- eleasignoretti0
- Oct 3, 2025
- 8 min read
You've worked hard all year. Your December salary is coming... and with it, the painful reality: you're going to pay X thousand francs in taxes. What if I told you that you still have a few weeks to reduce this bill by 2,000 to 5,000 CHF ?
1. PILLAR 3A: The essential classic ⭐
What it is:
Pillar 3a, also called tied individual pension provision, constitutes the third pillar of the Swiss pension system. It's a tax-privileged savings account designed to supplement your AHV benefits (1st pillar) and BVG benefits (2nd pillar) for your retirement. The tax advantage lies in its full deductibility from taxable income: each franc paid directly reduces your calculation base for direct federal tax and cantonal taxes. For a Swiss Romande employee with a marginal tax rate of 25-30%, this represents an immediate tax saving equivalent to this rate. Moreover, pillar 3a wealth is not subject to wealth tax during the savings phase, and returns are not taxed annually.
2025 amounts:
Employee: 7,056 CHF maximum
Self-employed: 35,280 CHF (20% of income, capped)
Concrete example: Thomas, 32 years old, salary 95,000 CHF in Lausanne
3a payment: 7,056 CHF
Tax saving: ~1,850 CHF (according to marginal rate ~26%)
Real cost of payment: 5,206 CHF for 7,056 CHF saved
⚠️ DEADLINE: December 31st 11:59 PM
After this date, you lose this deduction for the entire year.
Mistakes to avoid:
❌ 3a account not opened in time (allow 5-10 days)
❌ Transfer on December 31st afternoon (risk of processing in January)
❌ Exceeding the cap (excess is not deductible)
2. PENSION FUND BUY-IN: The investment that pays double
What it is:
Buying back contribution gaps in the pension fund (BVG) allows you to fill missing or insufficient contribution years in your 2nd pillar. These gaps appear for various reasons: study years after 25, part-time work periods, years spent abroad, or significant salary increases creating a gap between your theoretical and actual assets. The BVG buy-in represents one of the most powerful tax optimizations in the Swiss system. Unlike pillar 3a capped at 7,056 CHF, buy-in amounts can reach several tens of thousands of francs depending on your situation. These buy-ins are fully deductible from taxable income without annual limitation. In addition to the immediate tax advantage, you increase your pension capital which will generate a higher pension or larger capital at retirement.
Why it's powerful:
Immediate AND significant tax deduction
Increases your retirement capital
"Guaranteed" return through tax savings
Concrete example: Sophie and Marc, couple 35 years old, combined income 160,000 CHF in Neuchâtel
BVG buy-in: 25,000 CHF
Tax saving: ~7,500 CHF (marginal rate ~30%)
Immediate tax return: 30%
⚠️ WARNING: The 3-year rule.
If you plan to buy property and withdraw your BVG, you must wait 3 years after a buy-in. Plan ahead!
How to proceed:
Request your gap certificate from your pension fund (deadline: 2-4 weeks)
Evaluate the available amount
Pay before December 31st
Advanced strategy: Stagger buy-ins over 2-3 years to smooth the tax impact and avoid jumping into a higher bracket in a single year.
3. PROPERTY MAINTENANCE WORK: The opportunity not to miss
What it is:
Property owners in Switzerland can deduct maintenance and renovation costs from the imputed rental value (fictitious tax on the enjoyment of your own property). Following the recent popular vote on the abolition of imputed rental value taxation, we are currently in an exceptional transitional period. Until the new legislation comes into force (exact date to be confirmed, expected in 2028), you can deduct the entirety of your maintenance AND renovation costs, whether it's work preserving the property's value (routine maintenance) or work creating added value (extension, new kitchen, complete renovation). This is a temporary tax opportunity that property owners must absolutely seize: once the new law comes into force, these advantageous rules will disappear.
Why this is a unique opportunity:
Exceptionally favorable transitional period
All work is deductible (maintenance AND added value)
Limited time window before legislative change
Allows planning of major renovations with optimal tax impact
What is deductible (during the transitional period):
✅ Routine maintenance:
Roof, facade renovation
Window, door replacement
Heating system renovation
Interior/exterior painting work
Sanitary installation repairs
✅ Renovations with added value:
New kitchen
New bathroom
Extension, transformation
Air conditioning installation
Insulation improvement
✅ Ancillary costs:
Architect, engineer fees
Administrative costs related to work
Construction insurance
Concrete example: Family, owner in Yverdon, income 120,000 CHF
Complete bathroom renovation: 28,000 CHF
Facade renovation: 15,000 CHF
Various annual maintenance costs: 3,000 CHF
Total deductible: 46,000 CHF
Tax saving: ~12,000 CHF (according to marginal rate ~26%)
⚠️ CRUCIAL TIMING:
Invoice paid before 12/31 = deductible in the current year
Invoice paid in January = deductible the following year
Important: it's the payment date that counts, not the work execution date
Optimization strategy during the transitional period: NOW is the time to accelerate your renovation projects if you had planned them for the coming years. Take advantage of this exceptional window to:
Carry out major work you had postponed
Group several renovation projects
Maximize deductions while it's still possible
High-income year (bonus, premium) → maximize work
Documents to keep:
All detailed invoices
Proof of payment
Plans, building permit if necessary
Accepted quotes
4. DONATIONS TO PUBLIC BENEFIT ORGANIZATIONS
What it is:
Donations and payments made to Swiss institutions pursuing a public benefit purpose are tax deductible up to 20% of your net income. To be deductible, the beneficiary organization must be recognized as serving the public interest and have its headquarters in Switzerland. A donation of 1,000 CHF allows you to reduce your taxable income by 1,000 CHF. If your marginal rate is 25%, your tax saving will be 250 CHF, which means your donation actually "costs" you only 750 CHF. This mechanism is particularly interesting at year-end to optimize the tax burden while supporting causes that matter to you.
Eligible organizations:
Swiss Red Cross
Recognized charities (Caritas, Terre des Hommes, etc.)
Public benefit foundations
Museums, cultural institutions
Universities, higher education institutions
Recognized environmental protection organizations
Political parties (variable limits by canton: generally max 10,000-20,000 CHF)
Example:
Donation of 1,000 CHF to the Red Cross
Tax saving: ~250-300 CHF (depending on marginal rate)
Real cost: 700-750 CHF
⚠️ Keep receipts:
Many organizations automatically send certificates at the beginning of the following year, but some only provide them upon request. Check in December that you have all the receipts for your donations of the year.
Tip: If you're close to the 20% limit, spread significant donations over several years to maximize deductibility.
5. CONTINUING EDUCATION COSTS: Invest in yourself
What it is:
Professional development and retraining costs are tax deductible when related to your gainful activity. Since 2016, federal law recognizes the deductibility of continuing education and retraining costs, up to a limit of 12,900 CHF at the federal level. To be deductible, training must have a connection with your professional activity: improvement in your current field (CAS, DAS, MAS, certifications) or retraining for a new profession. Costs include tuition fees, course materials, travel related to training, and in some cases accommodation if training takes place far from your home.
Deductible examples: ✅ CAS, DAS, MAS (Certificate/Diploma/Master of Advanced Studies) ✅ MBA, Executive MBA ✅ Language courses with demonstrable professional connection ✅ Professional certifications (PMP, CFA, IT certifications, etc.) ✅ Professional conferences, seminars ✅ Continuing education required by employer or profession ✅ Professional retraining courses
❌ Leisure courses without professional connection ❌ Initial training (bachelor's, classic university master's for young people) ❌ Driver's license (unless essential to the profession)
Concrete example: Julie, 34 years old, marketing manager, 105,000 CHF, Neuchâtel
CAS in Digital Marketing: 9,500 CHF
Professional conference: 800 CHF
Total deductible: 10,300 CHF
Tax saving: ~2,800 CHF (marginal rate ~27%)
Documents to keep:
Registration and payment certificates
Detailed training program
Proof of connection with professional activity (employer email, job description)
Travel invoices if applicable
Strategy: If your training costs more than 12,900 CHF, spread payments over 2 years to maximize deductions (pay part in December, balance in January).
6. COUPLES' STRATEGY: Who pays what?
What it is:
Tax optimization for couples depends on their civil status. In Switzerland, the taxation regime changes depending on whether you're married (joint taxation with splitting) or in a common-law relationship (separate taxation). This difference creates specific optimization opportunities that must be exploited before year-end.
If you're married:
You're taxed jointly. Your incomes are added then divided before applying the rate, which softens progressivity. Optimization focuses on maximizing overall deductions. It doesn't matter who pays what between spouses, the tax effect is identical. The challenge: don't waste opportunities (both can each pay 7,056 CHF into 3a, i.e., 14,112 CHF total deductions).
If you're in a common-law relationship:
Each is taxed separately. This is where the greatest opportunities lie. Progressivity means the same deduction is worth more for the higher-earning partner. Strategic planning of who pays what can generate significant savings.
Optimization strategy for common-law partners:
Pillar 3a:
Each can pay 7,056 CHF
Prioritize payment by the higher-earning partner if budget is limited
BVG buy-in:
The partner with the highest marginal rate should favor this lever
Housing costs:
If co-owners: automatic 50/50 split
If sole ownership: all costs deductible for the owner
Concrete example: Unmarried couple, Lausanne: Alex 110,000 CHF + Sam 65,000 CHF
Action | Alex (rate ~28%) | Sam (rate ~22%) | Saving |
3a | 7,056 CHF | 7,056 CHF | ~3,500 CHF |
BVG buy-in | 20,000 CHF | - | ~5,600 CHF |
Training | 8,000 CHF | - | ~2,240 CHF |
Total deductions | 35,056 CHF | 7,056 CHF | ~11,340 CHF |
If budget is limited and only one can pay 7,056 CHF into 3a: Alex saves ~1,975 CHF vs ~1,550 CHF for Sam, i.e., 425 CHF difference.
YEAR-END CHECKLIST (to do NOW)
BEFORE END OF OCTOBER:
Request gap certificate from your pension fund
List work done in 2025 and verify all invoices are available
Check balance of donations made during the year
Gather continuing education certificates
BEFORE NOVEMBER 15th:
Open 3a account if not yet done
Decide BVG buy-in amount according to budget and strategy
Plan payment of outstanding work invoices
Finalize year-end donations if applicable
BEFORE DECEMBER 20th:
Pillar 3a payment made and confirmed
BVG buy-in made (transfer processed by fund)
All work invoices paid
Donations completed with receipts requested
SIMULATION: What gain for YOU?
Typical profile: Employee 32 years old, 95,000 CHF, Lausanne, single
Action | Amount invested | Tax saving | Tax ROI |
Pillar 3a | 7,056 CHF | ~1,850 CHF | 26% |
BVG buy-in | 15,000 CHF | ~3,900 CHF | 26% |
CAS training | 8,000 CHF | ~2,100 CHF | 26% |
Apartment work | 12,000 CHF | ~3,100 CHF | 26% |
TOTAL | 42,056 CHF | ~10,950 CHF | 26% |
The "real cost" of these 42,056 CHF invested is therefore only 31,106 CHF thanks to tax savings.
Typical profile: Married couple, 35 years old, 140,000 CHF combined, Neuchâtel, homeowners
Action | Amount invested | Tax saving | Tax ROI |
2x Pillar 3a | 14,112 CHF | ~4,000 CHF | 28% |
BVG buy-in spouse 1 | 18,000 CHF | ~5,000 CHF | 28% |
House work | 25,000 CHF | ~7,000 CHF | 28% |
TOTAL | 57,112 CHF | ~16,000 CHF | 28% |
CONCLUSION: Act now, thank yourself in April
Tax optimization is not evasion. It's intelligently using the tools that Swiss law provides you. Every year, thousands of taxpayers leave thousands of francs in tax savings on the table simply through ignorance or procrastination.
The 3 fatal errors to avoid:
❌ Waiting until December 28th: Bank and administrative processing times can push your payment into January
❌ Not verifying receipts: Missing invoices, certificates not requested = lost deductions
❌ Optimizing only one line: A global vision (3a + BVG + work + training) always generates better results than isolated optimization
The golden rule: The higher your income, the greater the impact of tax optimization. A payment of 7,056 CHF into 3a saves 1,400 CHF for someone at 70,000 CHF/year, but 2,100 CHF for someone at 120,000 CHF/year.
Not sure about your personalized strategy?
Each situation is unique: income, real estate projects, family structure, canton of residence... all these elements influence your optimal strategy. At BSCO, we analyze your complete tax situation and propose a tailor-made optimization plan adapted to your goals.
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