New in Switzerland? Here's how to optimize your taxes, retirement plans, and insurance.

If you have been living in Switzerland for less than five years, there are some important tax, insurance, and retirement-related aspects that you should consider. Especially expats with a B or C permit can save a lot of money and secure themselves optimally with the right measures. In this article, we will show you the best strategies to take advantage of tax benefits, plan your retirement wisely, and secure yourself properly in Switzerland.

1. Apply for tax refund on withheld taxes

In Switzerland, withholding tax is deducted directly from your salary. However, many expats end up paying too much because they do not claim their deductions.

When is a refund worthwhile?

• Your annual salary is over CHF 90,000

• You have high professional expenses or medical costs

• You pay retirement contributions to the Pillar 3a

• You have dependents such as children or a spouse

Tip: You can apply for a correction of the withholding tax to get back taxes that have been overpaid. The deadline usually ends on March 31 of the following year.

2. Pillar 3a: Use private retirement savings for tax benefits

Voluntary contributions to Pillar 3a are one of the best ways to save taxes while also preparing for the future.

Benefits of Pillar 3a:

• Contributions are tax-deductible (up to CHF 7,056 per year for employees, CHF 35,280 for self-employed).

• Capital in Pillar 3a remains exempt from wealth tax.

• You benefit from tax-favored withdrawals when leaving Switzerland or upon retirement.

Tip: If you plan to leave Switzerland again in the coming years, an early tax and retirement consultation is worthwhile to optimally plan your withdrawal.

3. Choose the right health insurance – lower premiums

Everyone living in Switzerland must take out basic insurance (KVG). However, premiums vary depending on the provider, franchise, and residential canton.

Ways to save on health insurance:

• Choose the franchise optimally: Higher franchise = lower monthly premiums.

• Compare premiums: Different insurers have different rates.

• Check supplementary insurance: Not every supplementary insurance is necessary.

Tip: You can switch your health insurance every year until November 30. A comparison of providers can save you several hundred francs per year.

4. Utilize tax deductions for employees

Many expats are unaware that they can deduct certain professional expenses from their taxes.

Possible tax deductions:

• Commuting costs to work (e.g., public transport tickets or car expenses)

• Costs for professional development (courses, seminars, degrees)

• Double household management if you maintain a residence abroad

Tip: If you earn more than CHF 120,000 per year, you must file a regular tax return and can claim even more deductions.

5. Claim family deductions and childcare costs

If you have children, there are tax benefits for families in Switzerland.

Possible deductions:

• Child deductions (depending on the canton)

• Costs for daycare or babysitting (up to CHF 10,100 per year deductible)

• Educational support for children in studies or training

Tip: Ask in your residential canton about additional family allowances, as these vary depending on the canton.

6. Check accident insurance & pension fund

If you are employed, you are automatically insured through your employer in the pension fund (Pillar 2) and accident insurance (UVG).

What you should consider:

• If you are self-employed, you need to take care of a pension fund and accident insurance yourself.

• With higher income, additional contributions to the pension fund can be tax attractive.

Tip: Consult an expert to see if a voluntary contribution to the pension fund is worthwhile to save taxes and optimize your retirement planning.

Conclusion: Plan wisely and save taxes

As an expat or newcomer in Switzerland, there are many ways to save taxes, make the right provisions, and secure yourself optimally. The most important measures are:

✅ Apply for tax refund on withholding taxes
✅ Utilize Pillar 3a for retirement & tax benefits
✅ Compare health insurance and other insurances
✅ Claim professional and family deductions
✅ Check pension fund and accident insurance

With the right strategy, you can benefit in the long term in Switzerland and optimize your income as much as possible.

Need support? We are happy to help you optimally structure your tax and insurance situation in Switzerland. Schedule a free consultation!