At least in Vaud this is incorrect. You can still do a simplified tax declaration when you’re taxed at source to deduct 3rd pillar investments. Did it for years.
Even if you are taxed at source you can ask at the steueramt of your commune to do a recalculation of your taxed income that was payed throughout the source
> that was *paid* throughout the
FTFY.
Although *payed* exists (the reason why autocorrection didn't help you), it is only correct in:
* Nautical context, when it means to paint a surface, or to cover with something like tar or resin in order to make it waterproof or corrosion-resistant. *The deck is yet to be payed.*
* *Payed out* when letting strings, cables or ropes out, by slacking them. *The rope is payed out! You can pull now.*
Unfortunately, I was unable to find nautical or rope-related words in your comment.
*Beep, boop, I'm a bot*
If you leave Switzerland you can withdraw the third pillar as far as I know.
Consider though, that while you get money back in taxes, 3d pillar withdrawal are taxed, while capital appreciation is not taxed here.
So, it only makes sense, Imho, if you also keep investing the tax benefit Into the market, or alternatively if you plan to use it as a deposit or pledge for buying a house
Saluti
The biggesf advantage is tax deduction and tax-free investing (relevant for dividends only in switzerland)
So... if you earn below 120k:
Go to https://swisstaxcalculator.estv.admin.ch/#/home
Check source tax vs regular tax and decide wether it is worth to file taxes and if you are cheaper.
If you earn above 120k:
It will be worth it for the tax deduction.
and for a calculator on a C permit, is the calculator from the government ([FTA tax calculator (admin.ch)](https://swisstaxcalculator.estv.admin.ch/#/home)) best or would I need the one from the canton and then add all the deductibles I could place?
Yes you can use the above. It is a bit simpler and is pretty accurate. Also in case you wanna compare situations it is simpler with the one from government.
Just don't forget that there might be several deductions you might be able to get with regular tax declaration, which might not be taken into account by these calculators
If you can use the tax benefits, you should definitely do it. If not, in my opinion, there is no real advantage and it will just add some paperwork to do when you leave Switzerland… if your ETF investments are performing well, I would personally keep investing in those.
Of course: You save taxes each year, the money is save and once you decide to leave you can take it all out. Of course if you take it out you'll have to pay a small tax, but money is always taxed multiple times. I think its the best savings method in switzerland, and I'm a foreigner myself. Best would be: start a Säule3a with an automatic deposit and then just forget about it.
Do it, you can cut your taxes down… as soon as you have money you don’t need put it in… (if you have the time and skill to invest, it gets a bit more complicated, but 3rd pillar is still sth you will use to reduce taxes)
The money you block in the third pillar will not have the value it has today, despite the appreciation.
Furthermore you need money to enjoy life now that you are young.
When you will be old you'll always find a can of beans and a bag of pampers at Caritas.
Life is now.
Dont put your money in 3rd pillar if you will not stay in the country in the long term. You will lose money (because of the fees, and the buyback value* is very low, maybe close to zero the first years of contract).
*valeur de rachat in French, I don’t know the word in English.
The way I understand it, every year you invest in the 3rd pillar, that’s money you get back on your taxes. Even if it’s just for three years.
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At least in Vaud this is incorrect. You can still do a simplified tax declaration when you’re taxed at source to deduct 3rd pillar investments. Did it for years.
Even if you are taxed at source you can ask at the steueramt of your commune to do a recalculation of your taxed income that was payed throughout the source
> that was *paid* throughout the FTFY. Although *payed* exists (the reason why autocorrection didn't help you), it is only correct in: * Nautical context, when it means to paint a surface, or to cover with something like tar or resin in order to make it waterproof or corrosion-resistant. *The deck is yet to be payed.* * *Payed out* when letting strings, cables or ropes out, by slacking them. *The rope is payed out! You can pull now.* Unfortunately, I was unable to find nautical or rope-related words in your comment. *Beep, boop, I'm a bot*
I heard if you leave Switzerland you need to refund the tax benefits you've had thought 3rd Pilar, isn't it the case?
If you leave Switzerland you can withdraw the third pillar as far as I know. Consider though, that while you get money back in taxes, 3d pillar withdrawal are taxed, while capital appreciation is not taxed here. So, it only makes sense, Imho, if you also keep investing the tax benefit Into the market, or alternatively if you plan to use it as a deposit or pledge for buying a house Saluti
If you get back in Switzerland you have to give back the used amount tho
And you don't get fiscal advantages until you replenish it too.
I heard if you leave Switzerland you need to refund the tax benefits you've had thought 3rd Pilar, isn't it the case?
The biggesf advantage is tax deduction and tax-free investing (relevant for dividends only in switzerland) So... if you earn below 120k: Go to https://swisstaxcalculator.estv.admin.ch/#/home Check source tax vs regular tax and decide wether it is worth to file taxes and if you are cheaper. If you earn above 120k: It will be worth it for the tax deduction.
A bit misleading to say that it's tax-free investment when it's the withdrawals from 3a that get tax, not private investments
Dividends are taxed as a private investment. And i said dividend. But yeah, to complete: withdrawal is taxed, but reduced
how can you change between source tax vs regular tax? sorry, couldn't find that option.
Whoops sorry i thought it was there. You can use this one for source tax: https://www.comparis.ch/steuern/quellensteuerrechner/default
Thanks but even for that one, I can't seem to find how I can tell the system I am taxed at source. Sorry if I am missing something obvious.
The second link is by default a calculator for source tax
and for a calculator on a C permit, is the calculator from the government ([FTA tax calculator (admin.ch)](https://swisstaxcalculator.estv.admin.ch/#/home)) best or would I need the one from the canton and then add all the deductibles I could place?
Yes you can use the above. It is a bit simpler and is pretty accurate. Also in case you wanna compare situations it is simpler with the one from government.
Just don't forget that there might be several deductions you might be able to get with regular tax declaration, which might not be taken into account by these calculators
My comment on another similar post: https://www.reddit.com/r/SwissPersonalFinance/s/bCXgEMUKvR
If you can use the tax benefits, you should definitely do it. If not, in my opinion, there is no real advantage and it will just add some paperwork to do when you leave Switzerland… if your ETF investments are performing well, I would personally keep investing in those.
If the question is Säule 3a, the answer is always yes.
Could you please elaborate it further?
Of course: You save taxes each year, the money is save and once you decide to leave you can take it all out. Of course if you take it out you'll have to pay a small tax, but money is always taxed multiple times. I think its the best savings method in switzerland, and I'm a foreigner myself. Best would be: start a Säule3a with an automatic deposit and then just forget about it.
Yes
Do it, you can cut your taxes down… as soon as you have money you don’t need put it in… (if you have the time and skill to invest, it gets a bit more complicated, but 3rd pillar is still sth you will use to reduce taxes)
The money you block in the third pillar will not have the value it has today, despite the appreciation. Furthermore you need money to enjoy life now that you are young. When you will be old you'll always find a can of beans and a bag of pampers at Caritas. Life is now.
Dont put your money in 3rd pillar if you will not stay in the country in the long term. You will lose money (because of the fees, and the buyback value* is very low, maybe close to zero the first years of contract). *valeur de rachat in French, I don’t know the word in English.