In Switzerland, there are several legal ways to reduce your income tax liability before retirement, and many of them are encouraged as part of responsible financial planning.
One of the most effective methods is to contribute to a Pillar 3a account. Contributions to Pillar 3a are tax-deductible up to an annual maximum (currently CHF 7'258 for employees with a pension fund in 2025). If you are self-employed without a pension fund, the limit is higher at up to 20 percent of your net income, capped at CHF 36'288. These contributions reduce your taxable income directly.
Another strategy is to maximise deductions related to work expenses, education costs, childcare, and commuting. Most cantons allow deductions for travel to work, professional development, and in some cases even meals away from home due to long commutes. Be sure to keep all relevant receipts and documentation, as cantonal rules vary.
If you own property, you can deduct mortgage interest and maintenance expenses, but not the repayment of the mortgage itself. You must also declare a notional rental value as taxable income (known as imputed rental value), so these deductions will help to offset that.
Donations to registered Swiss charities are also tax-deductible. The deduction is generally limited to 20 percent of your net income, but this can vary depending on the canton.
Finally, it is worth comparing cantonal tax rates. While moving for tax purposes alone is not always practical, those living near cantonal borders sometimes benefit from relocating to a lower-tax commune (Gemeinde (German), commune (French), comuni (Italian)).
Make sure to review both federal and cantonal tax rules, as deductions and rates differ significantly across cantons.
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Please note that all content within this response has been prepared for information purposes only. This response does not constitute financial, legal or tax advice. Always ensure you speak to a regulated Financial Adviser before making any financial decisions.