Save taxes in Switzerland: How to effectively reduce your tax burden

Switzerland offers numerous legal ways to save taxes as an individual. Through targeted optimization, you can significantly reduce your tax burden and keep more of your income. In this article, we will show you the most important tips and strategies to save taxes in Switzerland.

1. Pillar 3a – Use Private Retirement Provision for Tax Benefits

The voluntary contribution to Pillar 3a is one of the simplest and most effective ways to save taxes.

Benefits:

• Contributions to Pillar 3a can be deducted from taxable income up to a certain maximum amount (2024: CHF 7,056 for employees with a pension fund, CHF 35,280 for self-employed individuals without a pension fund).

• The capital in Pillar 3a is exempt from wealth tax.

• The payout is taxed at a reduced tax rate.

Tip: Make your payments as early in the year as possible to allow your capital to grow tax-free for a longer period.

2. Deduct Work and Continuing Education Costs

Many expenses related to your work can be claimed for tax purposes.

These include:

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

• Necessary business expenses (laptop, work materials)

• Continuing education related to your profession

Tip: Make sure to keep all receipts and fill out your tax return accurately.

3. Deduct Insurance Premiums and Health Costs

Some premiums for health and life insurance, as well as certain health costs, are tax-deductible.

What you can deduct:

• Health insurance premiums (up to a certain maximum amount)

• Accident and life insurance

• Health costs not covered by health insurance

Tip: If your healthcare costs are particularly high in a year, group them together to take advantage of the maximum possible deduction.

4. Deduct Donations to Charitable Organizations

Donations to recognized charitable organizations can be deducted from your taxes.

Rules:

• Donations must go to a tax-exempt organization.

• In most cantons, up to 20% of taxable income can be deducted.

Tip: Keep donation receipts to claim them on your tax return.

5. Use Mortgage Interest and Renovation Costs for Taxes

Property owners can also benefit from tax advantages.

Tax-deductible expenses include:

• Mortgage interest

• Renovations that maintain value (e.g., roof renovations, facade renovations)

• Energy-efficient upgrades (e.g., solar panels, thermal insulation)

Tip: If larger renovations are planned, spread them over several years to fully utilize the tax advantage.

6. Utilize Family and Child Deductions

Families with children can take advantage of various tax benefits.

These include:

• Child allowances (depending on the canton)

• Childcare costs (e.g., daycare, nanny)

• Contributions to children's education

Tip: Check the cantonal differences, as deductions vary by place of residence.

7. Optimize Wealth Structure and Capital Gains

Depending on the situation, it may be worthwhile to optimize your wealth structure.

Strategies:

• Capital gains from stock sales are tax-free, provided it is private asset management.

• Distribution of wealth across various investment forms can yield tax benefits.

Tip: Seek professional advice to optimally structure your personal situation.

Conclusion: Save Taxes with the Right Measures

In Switzerland, there are numerous legal ways to save taxes. Through smart investments, targeted deductions, and optimal planning, you can significantly reduce your tax burden. Review your options annually and adjust your strategy to get the most out of your income.

Need assistance with your tax return or tax optimization? Contact us for individual advice!