The single largest tax deduction available to most Swiss employees in any given year. A Pensionskassen-Einkauf (pension fund buy-in) lets you make a voluntary lump-sum payment into your Pillar 2 account, and deduct the ENTIRE amount from your taxable income that year.
Unlike Pillar 3a (capped at CHF 7,258/year), Pillar 2 buy-ins can be CHF 20,000, CHF 50,000, or even CHF 200,000+ in a single year: depending on your individual gap.
How the gap is calculated
Your Pensionskasse calculates your "maximum possible benefits" based on your age, salary, and years of service. The difference between your actual accumulated capital and this theoretical maximum is your Einkaufspotenzial (buy-in potential). Your HR department or pension fund statement shows this number.
The tax optimization play
Sophie earns CHF 180,000 in Zürich. Her Einkaufspotenzial is CHF 85,000. Instead of buying in all at once, she spreads it over 3 years:
- 2026: CHF 30,000 buy-in → tax saved: CHF 10,200 (34% marginal rate)
- 2027: CHF 30,000 buy-in → tax saved: CHF 10,200
- 2028: CHF 25,000 buy-in → tax saved: CHF 8,500
- Total tax savings: CHF 28,900 over 3 years
Spreading is optimal because Swiss progressive tax rates mean each franc of deduction reduces tax at the highest marginal rate. A CHF 85,000 one-shot deduction might only save CHF 25,000 (average rate drops).
The 3-year withdrawal lock
After a buy-in, you cannot withdraw capital (lump sum at retirement) for 3 years. This prevents people from buying in for the tax deduction and immediately cashing out. Plan accordingly if retirement is approaching.
