Minimizing your tax bill
Tax advantages on third-pillar pension products
One way to save for retirement is through a third-pillar retirement savings account or life insurance policy. Contributions are tax-deductible (up to a ceiling).
If you pay into a company pension, you may be able to purchase past years during which you did not contribute (or fully contribute). Contributions for past years are tax-deductible and will increase your future retirement benefits.
Some tax advantages of home ownership
In Switzerland, you can save on taxes by repaying your mortgage loan indirectly. Instead of paying down your loan directly to the bank, your mortgage payments are deposited into an individual retirement account or policy in your name and pledged to the bank. Those funds are used to pay down the principal at a later date. There are important tax advantages: deposits into individual retirement products are tax-deductible up to a ceiling, the retirement savings that you build up are not subject to wealth tax, and the interest you earn is tax-free as well. More broadly, home maintenance costs are generally tax deductible as well.
Your securities portfolio
How you structure your securities investments can affect your tax charge. For example, dividends are subject to income tax, while capital gains are not (provided the securities are part of your personal wealth). Your BCV advisor can offer useful tips on the right investments for you, based on your investor profile and how much you want to invest.
Give a gift
Giving some of your assets as a gift to your family can improve your tax situation. In addition to helping your loved ones, your gift will be tax exempt up to a certain threshold. Whether and how much your gift is taxed will depend on your family relationship with the recipient, the amount of the gift and the canton in which you live. If you live in Vaud, for example, gifts of up to 50,000 francs per child and per year are tax deductible.
Where you live makes a difference
Your tax rate depends on where you live. In Vaud Canton, tax rates differ from town to town. Before moving, think about the possible impact on your tax rate.