Pillar 2 buy-in (Einkauf): tax relief and withdrawal rules
Published 2026-10-19 · Updated 2026-10-19 · 3 min read · 3 sources · Verified Swiss federal benchmarks
Direct answer
Voluntary buy-ins into your occupational pension (Pillar 2) are usually deductible from federal and cantonal income tax in the payment year, within fund rules and coordination limits (coordination deduction CHF 26,460, insured cap CHF 90,720 for 2026). If you take a lump-sum withdrawal within three years after a buy-in, tax law restricts the preferential capital treatment on that linked amount; plan buy-ins and exits accordingly.
Key facts
- BVG minimum entry salary CHF 22,680; coordination deduction CHF 26,460; insured cap CHF 90,720 (2026).
- Employer pays at least 50% of mandatory BVG contributions; employee pays the rest.
- Credit rates on insured salary: 7%, 10%, 15%, or 18% by age band under BVG.
- Pillar 2 lump-sum withdrawals are taxed separately at reduced cantonal rates.
- Three-year blocking applies between voluntary buy-in and favourable lump-sum withdrawal of linked amounts.
Why people make a buy-in
Close gaps from part-time years, divorce pension splits, or late entry above the BVG minimum salary CHF 22,680.
Shift taxable salary income into pension assets while still employed and insured.
Deduction value equals buy-in amount times your marginal income tax rate in the payment year.
Buy-ins complement but do not replace Pillar 3a, which remains capped at CHF 7,258 with a pension fund or 20% of net income max CHF 36,288 without.
Employer must fund at least half of mandatory BVG contributions; buy-ins are employee voluntary purchases on top.
Numeric sketch of a buy-in
Taxable income CHF 150,000; suppose marginal combined rate near 30% for illustration.
Pension fund accepts voluntary buy-in CHF 40,000.
Income tax saving about CHF 12,000 before final assessment, paid later if estimates were wrong.
Insured salary for ongoing credits is reduced by coordination deduction CHF 26,460 and capped at CHF 90,720; age sets credit rate at 7%, 10%, 15%, or 18% on that insured slice.
Lump-sum withdrawal within three years after this buy-in faces restricted preferential capital tax on the linked portion.
| Parameter | 2026 value | Note |
|---|---|---|
| Coordination deduction | CHF 26,460 | Reduces insured salary |
| Insured salary cap | CHF 90,720 | Maximum insured earnings |
| Buy-in tax timing | Payment year | Deduct when paid |
| Lump-sum lock | 3 years | After voluntary buy-in |
Worked example: buy-in plus 3a same year
Gross salary CHF 140,000 triggers mandatory NOV from CHF 120,000.
You pay CHF 7,258 to Pillar 3a and CHF 30,000 Pillar 2 buy-in in 2026.
Both can reduce taxable income if the fund accepts the buy-in and 3a is paid in year.
AHV/IV/EO 5.30% and ALV 1.10% apply to salary, not to the buy-in or 3a transfers.
If you emigrate and take a lump-sum two years later, test the three-year rule against the CHF 30,000 buy-in before assuming full capital rate relief.
Withdrawal and tax at exit
Retirement allows annuity or lump sum; lump sums use separate reduced cantonal rates.
Pillar 3a capital payouts follow the same separation from ordinary salary tax.
Buy-in shortly before planned withdrawal can backfire if you need the capital inside three years.
AHV does not apply to buy-in amounts; they are pension assets, not cash salary.
Common mistakes
Buying in without pension fund confirmation of the maximum allowed amount.
Assuming buy-in reduces wealth tax immediately; locked pension is generally exempt until withdrawal.
Taking a lump-sum within three years and expecting full capital tax rate on the buy-in slice.
Skipping 3a because buy-in used all cash, leaving CHF 7,258 deduction unused.
Ignoring employer share rules and crediting rates when planning retirement income.
FAQ
- Is every buy-in fully deductible?
- Only amounts the pension fund accepts as voluntary purchase and that law allows. The fund calculates the maximum.
- Does buy-in reduce wealth tax?
- Locked pension assets are generally outside annual wealth tax. Tax hits on withdrawal instead.
- Can I buy in and withdraw 3a the same year?
- 3a withdrawal is separate. Each pillar has its own limits and capital tax rules.
- What if I switch employers after a buy-in?
- Vested benefits transfer; buy-in history stays with the pension account. The three-year rule still matters for lump sums.
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Keep reading
- Year-end 2026 Swiss tax strategy report: Pillar 3a CHF 7,258 limit and retroactive buy-insFor the 2026 tax year, employed individuals affiliated with a Swiss pension fund (BVG/LPP) can deduct up to CHF 7,258 in Pillar 3a contributions from their taxable income, while self-employed individuals without a pension fund can deduct up to 20% of net earned income capped at CHF 36,288. Furthermore, late 2026 marks the preparatory window for the landmark retroactive Pillar 3a buy-in reform, allowing individuals who missed past contribution maximums to purchase retroactive quotas under strict statutory conditions.
- Pension or lump sum in Switzerland: how to decideAt retirement you often choose between a monthly BVG pension and a one-time capital payout from your pension fund. A full AHV pension in 2026 is CHF 1,260–2,520 per month; couples are capped at CHF 3,780. Lump sums are taxed separately at a reduced rate, but buy-ins must stay in the fund for at least three years before you withdraw capital.
- BVG buy-ins in Switzerland: deductibility and the three-year ruleVoluntary BVG buy-ins (Einkauf) are tax-deductible in the year you pay, within limits set by your pension fund. Each buy-in starts a three-year waiting period before you may withdraw that money as a lump sum at retirement. BVG applies from CHF 22,680 annual salary, with coordination deduction CHF 26,460 and insured salary capped at CHF 90,720.
- Guide: Swiss gross-to-net salary in 2026: AHV, ALV, BVG and taxes explainedIn Switzerland, mandatory employee social security and pension deductions reduce gross salary by roughly 10% to 16% before income tax: 5.30% for AHV/IV/EO, 1.10% for ALV (up to CHF 148,200), ~1.3% for NBU/KTG, and 3.5% to 9.0% of coordinated salary for the 2nd-pillar pension (BVG/LPP).
- Guide: Pillar 3a maximum for 2026: CHF 7,258 or 20% of incomeIn 2026 you can pay up to CHF 7,258 into Pillar 3a if you have a pension fund. Without one, the limit is 20% of net earned income, up to CHF 36,288.