Retroactive buy-in in pillar 3a

From 1 January 2025, people working in Switzerland who do not pay the maximum permissible contributions into their pillar 3a in a given year will be able to pay these contributions retrospectively for up to ten years and deduct these buy-ins from their taxes. The retrospective payment applies for the first time from and for the year 2025.

In addition to the regular contribution, a buy-in into pillar 3a is permitted each year in the amount of the so-called "small contribution" (max. CHF 7’258 in 2025). Anyone who wants to make a buy-in must be entitled to make contributions to pillar 3a, i.e. have earned income subject to AHV contributions in Switzerland, both in the year in which the buy-in is made and in the year for which contributions are subsequently paid in. A buy-in requires that the ordinary annual contribution is paid in full in the year in question. The buy-in, like the ordinary annual contribution, is fully deductible from taxable income.

Payments into pillar 3a must be declared in the personal tax return and can be deducted from taxable income within the legally stipulated maximum amounts. Proof of payment is provided by the payment certificates issued by the bank or insurance company, which must be enclosed with the tax return.

The new provisions provide for special regulations to ensure that buy-ins can also be traced at a later date and, in particular, properly checked by the competent tax authorities. Grant Thornton Switzerland/Liechtenstein will be happy to support you as a competent contact for any questions you may have. We look forward to hearing from you.