The Best Tax-Saving Tips for 2025

Have you ever calculated how much money you could save each year through smart tax planning? With the right strategies, Swiss taxpayers can save several thousand francs in 2025. From Pillar 3a contributions with a maximum of CHF 7,258 for employees to strategic pension fund buy-ins – the opportunities are diverse. While many only know the obvious deductions, they often miss out on substantial tax advantages due to a lack of awareness of cantonal rules and optimization strategies.

Pillar 3a: The Classic with New Opportunities in 2025

Contribution limits

Employees with an occupational pension can contribute up to CHF 7,258, while self-employed individuals without a pension fund can contribute up to CHF 36,288 or 20% of net earned income.

Tax savings in practice

A single 49-year-old with an income of CHF 80,000 saves the following with maximum contributions: CHF 1,661 in Lucerne, CHF 1,280 in Zug, and CHF 1,487 in Sarnen. Married couples save even more by doubling contributions: at CHF 120,000 household income, savings amount to CHF 3,394 in Lucerne, CHF 2,251 in Zug, and CHF 3,123 in Sarnen.

New back-payment option from 2026

Starting in 2026, retroactive contributions to Pillar 3a will be allowed for up to 10 years – for the first time covering the year 2025. This change opens entirely new strategies for tax optimization.

Multiple accounts for staggered withdrawals

As a rule of thumb: once a Pillar 3a account reaches CHF 50,000, opening an additional account makes sense. Staggered withdrawals can significantly reduce taxes. For example, withdrawing CHF 150,000 in Basel saves over CHF 3,000 compared to a lump-sum withdrawal. Splitting into three withdrawals of CHF 50,000 each increases tax savings to around CHF 4,500.

Pension Fund Buy-Ins: Great Potential with Risks

Strategic planning

Voluntary buy-ins to an occupational pension fund are fully tax-deductible and can result in major savings, particularly for high incomes. Because of progressive taxation, it is often more beneficial to spread buy-ins over several years rather than making one large lump sum.

Key conditions

Pension fund buy-ins only make sense if the fund is financially solid. Review the coverage ratio, technical interest rate, and overall financial health of your pension fund before making a contribution.

Deducting Insurance Premiums Effectively

Premiums for health, accident, and life insurance can also be deducted. For federal taxes, the limits are CHF 1,800 (or CHF 2,700 without an occupational pension) for singles, and CHF 3,600 (or CHF 5,400 without a pension fund) for married couples. Most cantons allow even higher deductions. Families benefit from increased limits depending on the number of children.

Maximizing Work-Related Expenses

Commuting deductions

For federal tax and in nearly all cantons, cyclists can deduct CHF 700 per year, while Basel-Stadt allows CHF 800. Public transport costs can be deducted up to CHF 3,000 at the federal level. Actual commuting costs by car may also be deductible under certain conditions.

Other professional expenses

• Work equipment, tools, specialist literature, professional clothing, or necessary accommodation costs
• A flat-rate deduction for additional professional costs: up to 3% of net income, capped at CHF 4,000 at the federal level

Continuing education

Self-financed retraining, courses, and continuing education are deductible as long as they relate to your professional activity.

Family Benefits and Child Deductions

Child deductions by canton

The federal child deduction is CHF 6,600 per child. In Zurich, it is CHF 9,000. Even adult children in education still qualify.

Childcare costs

Childcare expenses are deductible: up to CHF 25,000 in Zurich, CHF 10,000 in Basel-Stadt, and CHF 8,000 in Bern.

Second-earner deduction

Married couples or registered partners with two incomes can claim the second-earner deduction. For federal tax, this is half of the lower income (minimum CHF 8,600, maximum CHF 14,100).

Donations and Political Contributions

Charitable donations

Donations to tax-exempt, charitable organizations are deductible if at least CHF 100 and up to 20% of net income.

Political contributions

Donations and membership fees to political parties are also deductible. The federal maximum is CHF 10,300, but cantonal rules differ.

Using Debt Interest Strategically

Deductible debts

Private loans, credit card interest, and mortgage interest are deductible. For federal taxes: maximum CHF 50,000 plus investment income.

Indirect amortization

With mortgages, indirect amortization via Pillar 3a can be worthwhile: instead of reducing the mortgage directly, payments go into Pillar 3a, keeping mortgage interest deductible while also benefiting from 3a tax savings.

Optimizing Side Income

Income from side jobs can also be partially deducted. The federal government allows a flat-rate deduction of 20% of side income, at least CHF 800.

Cantonal Differences as an Opportunity

Switzerland’s 26 cantonal tax systems create additional opportunities. Many cantons allow higher deductions than the federal level, making it essential to review the rules where you live.

Timing and Strategic Planning

Year-end optimization

• Make Pillar 3a contributions before December 31
• Schedule pension fund buy-ins for years with higher income
• Bundle donations for maximum impact

Multi-year perspective

Contributing to Pillar 3a early in the year increases compounding effects. With a 3% annual return, early contributions can add around CHF 10,000 in additional gains over 30 years compared to late contributions.

Professional Advice Pays Off

The Swiss tax system is complex, and the optimization options are extensive. For more complex situations, consulting a tax advisor or specialized online service is worthwhile. They can ensure you make full use of all deductions and avoid costly mistakes.

Conclusion: Systematic Tax Savings in 2025

The best tax-saving tips for 2025 combine proven strategies with new opportunities. Pillar 3a remains the cornerstone, with the added potential of retroactive contributions from 2026. Pension fund buy-ins can deliver significant savings when funds are financially sound. Families benefit from numerous deductions, and even smaller optimizations – insurance premiums, donations, or professional expenses – add up to substantial savings.

The key to success lies in systematically leveraging all available deductions, timing contributions strategically, and making use of cantonal differences. Start planning early and take advantage of the many opportunities within the Swiss tax system to your benefit.