Hi,

The contributions to the pillar 3b plans do not allow any tax deductions in Switzerland. Therefore, it's assimulated to a private saving.

Per

*assimilated I meant

wrong

Hi, you may call Georges Buchan, who is an english speaking insurance broker at Maximum Value and he can explain all of this to you. You may reach him on [email protected]

Good luck!

@Wojteck W: wrong

I am not sure 3a is bound to a local job.  Its only beneficial if you pay Swiss tax. So I think you can work where you like, if you are paying tax here you get the benefit of holding the account/policy.

For 3b.  I have one, which was advised through Maximum value.  I wouldnt reccoment it really.  I have an insurance with Pax and dont see any benefits.  If you have a family or dependands sure its an insurance you pay in to.  I have had no tax benefit from it in Geneva or in Zurich.

It did make me put more money aside as I was bound to pay into it.  But personally I dont see any benefit.  If its something you are interested in, take a 3b bank account.  This allows you to pay in what you like, stop paying it any any point and to withdraw it.  Stay away from advisors and insurances...And my experience with Maximum value -  They provided a quote on the 3b less than I could get with Pax direct and I believe the advise they gave suited their pockets not my needs

3b what's the point?

Max out 3a every year if you live in Switzerland and pay tax here. Also use paying into 2 pillar (company pension) if you pay Swiss tax to additionally reduce taxes.

Don't get life insurance that is combined with savings (3a/3b). Fees are way too high. If you want life, get a premium only plan. In Geneva (and I think only in Geneva!) premium only life insurance plans are tax deductible.

If you aren't liable for income tax in Switzerland then none of the above are of interest from a tax perspective. In this case (depending on age and risk profile) you should be investing in diversified portfolio of equities, ideally using ETFs. Find lowest cost internet broker with zero custody fees and low transaction costs.

If you are leaving Switzerland this year and had a good pay day then as noted above max out 3a and also pay into 2 pillar before you leave in order to bring your tax burden for this fiscal year down.

3a is tax deductible at source / tax return, all Swiss

3b is tax deductible tax return only, Cantons Geneva and Fribourg

Can you screen shot or give the article number/section header where you put the 3b contribution on the Geneva and Friborg tax return forms?

3a or 3b, both are deductible up to a limit. 

What is good for employers is that providing a 3b is tax deductible from the corporate taxation. Meaning, its advantageous to pay 3b versus dividend, which is taxed at a rate aproximatly, depending on cantons of 35%. So 3b not taxable versus dividends is an interesting way to pay high bonus. 

3a is personal versus 3b can be by your own company or as leadership in a company, its very interesting except the interest rates suck.

So compnanines save on taxes, but you get your money lock into a crapy scheme of say 1%. I personally would like the cash and invest as I please.

So in my view as an individual, I want to use my cash to invest as I want. 3b sucks

https://en.comparis.ch/saeule-3a/info/glossar/saeule_3b

This website is not taking into account 'company participation into 3b pillar, agian its company expense, 'tax deductible only of the company' not individually. 

Pillar 3b is the unrestricted pension provision consisting of savings, bank accounts, life insurances, securities, property etc. It is open to all residents of Switzerland. Unlike pillar 3a, pillar 3b does not provide any tax privileges. For example, amounts paid into pillar 3b products cannot be deducted from tax. However, the unrestricted pension provision is not subject to the strict legal regulations of the pillar 3a. Generall, depending on the duration of the product, the assets are freely available.

Don't take 3b plan also. I had taken it. Kept it for 5 years with Generally . Spent chf 9000 on it. When I claimed it. I received no only chf 4550. 

So basically it's a loss. 

Generalli life insurance.

For Geneva it's here:

http://www.getax.ch/support/mots-cles/3eme-pilier-b

Quelle déduction fiscale pour le 3ème pilier B si vous résidez dans le canton de Genève ?

Dans le canton de Genève, vous pouvez déduire de vos revenus pour le 3ème pilier B par année civile :

Pour une personne célibataire :

CHF 2’217.- si vous êtes salarié et CHF 4’434.- si vous êtes indépendant (et si vous ne cotisez ni au 2ème pilier ni à un 3ème pilier A)
Pour un couple marié/des partenaires enregistrés :

CHF 3’326.- si les deux conjoints sont salariés, CHF 4’989.- si l’un des deux conjoints est indépendant (et ne cotise ni au 2ème pilier ni à un 3ème pilier A), CHF 6’652.- si les deux conjoints sont indépendants
Si vous avez des enfants :

CHF 907.- par enfant si les deux conjoints sont salariés, CHF 1’361.- si l’un des deux conjoints est indépendant (et ne cotise ni au 2ème pilier ni à un 3ème pilier A), CHF 1’814.- si les deux conjoints sont indépendants

Even with tax benefits do not recommend 3b for individuals, all the commissions are loaded in the front, the guarantee after fixed term is lower than the contributions. Net net to full time it may be worth it but for the early years value will be lower than payments.

Would not do again and would cancel if could get money out.

Hello, it depends what permit you have if you can actually take a 3b, but you can deduct it from taxes... let me know if you would like to talk further.

Thanks.

PS always remember that 3a or 3b is meant for your retirement, I would not advise taking one out if you're not going to take it to the end...

Hello Peaky. I don't know your case or situation so I can't comment, but thats not what we do here...

I had a 3b and took such a loss on it. Then I opened a 3a with PostFinance where I have my other accounts. I maxed out the contribution every year, and saved some on my taxes. The interest on it isn't great, but I was able to use the money in the 3a account as part of the downpayment for a property purchase. 

So, tl:dr: 

3a: crappy interest, but tax deduction and can use it for a property purchase 

3b: felt ripped off by the insurance company, no tax deduction, lost a couple grand

3b is only sold by insurance... it s a saving that include a life ( death insurance ) and it s relevant to subscribe only if you re sure to keep it untill it ends ( minimum 10 years). 
The tax deduction is limited and not available in all canton. 
I do believe that you can find better saving plan than 3b.

I m pretty sure that Bank only sell 3rd pilla A 

the 3rd pillar B is a specific insurance saving.