---
title: "LPP buy-in: worth it or not? How to calculate it, the three-year lock-in and the 31 December deadline"
url: https://www.ibani.com/en/guides/lpp-buy-in-worth-it-calculation
lang: en
date_modified: 2026-10-05
author: "Brice DELHOME"
---

![Coins going into a pension fund with columns, next to a falling tax return and a padlock, ibani mascot](https://www.ibani.com/images/rachat-lpp-rentabilite-calcul.png)

# LPP buy-in: worth it or not? How to calculate it, the three-year lock-in and the 31 December deadline

 Reading time: 14 minutes | **Updated: 5 October 2026**

By [Brice DELHOME](https://www.ibani.com/en/author/brice-delhome)

📌 In short: three figures decide

-   **The buy-in is deducted in full from taxable income** in the year of payment, for federal tax as well as for cantonal and communal taxes. The saving equals the amount bought in multiplied by your **marginal tax rate**.
-   **The capital will be taxed on the way out**, separately and at a reduced rate: around 4 to 5% on CHF 100,000 and 7 to 8.5% on CHF 500,000 for a single person in Geneva, Lausanne, Zurich or Bern in 2026, according to the Federal Tax Administration's calculator.
-   **Time is everything**: with a marginal rate of 30%, a buy-in of CHF 50,000 yields the equivalent of **10.9% a year over three years**, but **3.1% a year over fifteen years**. The tax advantage is gained once, then diluted.
-   **No lump sum withdrawal for three years** after a buy-in (art. 79b para. 3 LPP). Otherwise, the deduction is reversed, even if the capital comes from another fund or from a vested benefits account.
-   **For a deduction in 2026**, the money must reach the fund in 2026, sometimes before an internal date set in December. People taxed at source must request a subsequent ordinary assessment before 31 March 2027.

Every year, the pension certificate shows a line that many employees look at without knowing what to do with it: the buy-in potential. Paying all or part of that sum into your pension fund reduces the year's tax, often by several thousand francs. But the money is then locked in, paid a modest rate of interest, and it will be taxed a second time, more lightly, when it is withdrawn. Whether the operation pays off is therefore a matter neither of intuition nor of slogans: it is a calculation with three parameters, which this guide sets out step by step, together with the rules that can make it fail.

## 1\. What is a buy-in, and how much can you buy in?

A buy-in is a voluntary payment into your pension fund, on top of the contributions deducted from your salary, to fill a pension gap. A gap arises whenever the assets accumulated are lower than those provided for by the fund's rules for your age and salary: a late arrival in Switzerland, years in education, part-time work, a salary increase, a divorce, an advance withdrawal for a home.

The law sets the ceiling: the fund **may allow a buy-in only up to the amount of the benefits provided for by its rules** (art. 79b para. 1 of the Federal Act on Occupational Old-Age, Survivors' and Invalidity Pension Provision, LPP). The exact amount is calculated according to each fund's rules; it appears on the annual pension certificate or can be obtained on request. Three items reduce it, under the OPP 2 ordinance:

-   **Vested benefits** that have not been transferred into the current fund are deducted from the buy-in amount (art. 60a para. 3 OPP 2). A forgotten vested benefits account therefore reduces your potential by the same amount.
-   **Pillar 3a assets that are too high** also reduce the potential, for the portion that exceeds the sum of the maximum deductible contributions since the age of 24, interest included (art. 60a para. 2 OPP 2). This mainly concerns former self-employed people.
-   **Retirement benefits already received** are deducted from the potential of a person who resumes work after drawing their pension (art. 60a para. 4 OPP 2).

Two situations have their own rules. A person **arriving from abroad who has never been a member of a Swiss fund** may not buy in more than **20% of their insured salary per year for five years** (art. 60b OPP 2): with an insured salary of CHF 80,000, CHF 16,000 a year at most. And a person who has obtained an **advance withdrawal for their home** must in principle repay it before being able to make a voluntary buy-in (art. 79b para. 3 LPP). Buy-ins following a divorce, by contrast, are exempt from the limitations (art. 79b para. 4 LPP). Our guide to [occupational pension provision (LPP)](https://www.ibani.com/en/guides/op-the-swiss-pension-fund-system) explains how to read the pension certificate.

## 2\. How do you calculate whether a buy-in pays off?

The buy-in is deducted from taxable income, with no tax ceiling of its own, for direct federal tax (art. 33 para. 1 let. d of the Federal Act on Direct Federal Taxation, LIFD) as well as for cantonal and communal taxes (art. 9 para. 2 let. d of the Federal Act on the Harmonisation of Direct Taxation, LHID). Three figures are enough to judge the operation:

-   **Your marginal tax rate (m)**, that is the rate that applies to the top slice of your income. It is this rate, and not your average rate, that measures the tax saving: a buy-in of CHF 50,000 with a marginal rate of 30% reduces tax by CHF 15,000. The real cost of the buy-in is therefore only CHF 35,000.
-   **The number of years (n)** between the buy-in and the withdrawal of the capital, during which the money earns the rate credited by the fund **(i)**. The statutory minimum rate, which applies only to the mandatory portion of the assets, is **1.25% in 2026**; the fund may credit more or less on the extra-mandatory portion.
-   **The tax rate on the lump sum (s)** paid on withdrawal. Pension capital is taxed separately from the rest of income; for federal tax, at one fifth of the ordinary scale (art. 38 LIFD). Each canton applies its own method.

The equivalent annual return of the buy-in is obtained by comparing what you get back net of tax with what the buy-in really cost you:

**🧮 The formula:** annual return = \[ (1 + i)n × (1 − s) ÷ (1 − m) \]1/n − 1

With m = 30%, i = 1.25%, s = 8% and n = 5 years: CHF 50,000 becomes CHF 53,204 in the fund, that is CHF 48,948 after 8% tax on the lump sum, for a real cost of CHF 35,000. The gain is CHF 13,948 over five years, the equivalent of **6.9% a year**.

### Which tax on the lump sum should you assume?

The figure depends on the canton, the commune, marital status and above all the total amount withdrawn, since the scale is progressive. Simulations with the Federal Tax Administration's tax calculator give the following orders of magnitude for 2026 (man aged 65, no religious affiliation, federal, cantonal and communal taxes included):

| City | Single person, CHF 100,000 | Single person, CHF 500,000 | Married couple, CHF 100,000 | Married couple, CHF 500,000 |
| --- | --- | --- | --- | --- |
| Geneva | CHF 4,125 (4.1%) | CHF 37,051 (7.4%) | CHF 2,728 (2.7%) | CHF 33,478 (6.7%) |
| Lausanne | CHF 4,589 (4.6%) | CHF 41,947 (8.4%) | CHF 3,644 (3.6%) | CHF 37,881 (7.6%) |
| Zurich | CHF 4,817 (4.8%) | CHF 35,068 (7.0%) | CHF 4,643 (4.6%) | CHF 31,576 (6.3%) |
| Bern | CHF 4,628 (4.6%) | CHF 41,259 (8.3%) | CHF 3,801 (3.8%) | CHF 37,660 (7.5%) |

A buy-in comes on top of capital already built up: what counts is therefore the rate applicable to the top slice of the capital, which is higher than the average rate. For a single person in Geneva, the tax rises from CHF 4,125 on CHF 100,000 to CHF 37,051 on CHF 500,000: the additional CHF 400,000 is taxed at 8.2% on average. That is why the examples in this guide assume a tax of 8% on the capital resulting from the buy-in, a central assumption: for a single person, the slice from CHF 100,000 to CHF 500,000 is taxed at between 7.6% (Zurich) and 9.3% (Lausanne), and the return is lower if your rate is higher.

### The marginal rate: the assumption that weighs most

Your marginal rate is found by comparing the tax calculated on your income with and without the amount of the buy-in, for example in your canton's calculator or in the tax return software. It varies considerably: low for a modest income, it can approach or exceed 40% for a high income depending on the canton, which the cantonal calculator lets you check. The same buy-in is therefore not worth the same for two people:

| Marginal rate (assumption) | Tax saving on CHF 50,000 | Equivalent annual return, withdrawal after 5 years | Equivalent annual return, withdrawal after 10 years |
| --- | --- | --- | --- |
| 20% | CHF 10,000 | 4.1% | 2.7% |
| 30% | CHF 15,000 | 6.9% | 4.1% |
| 40% | CHF 20,000 | 10.3% | 5.7% |

Common assumptions: interest credited at 1.25% a year, tax of 8% on the lump sum at withdrawal. These returns are calculation results, not guaranteed rates.

## 3\. Why does the time until withdrawal change everything?

Because the tax advantage is collected only once, at the time of the buy-in, whereas the following years earn only the fund's interest. The longer the money stays in, the more this initial gain is spread over a large number of years, and the closer the annual return comes to the credited interest rate.

| Withdrawal after | Capital resulting from the buy-in | Tax of 8% on the lump sum | Net amount recovered | Equivalent annual return |
| --- | --- | --- | --- | --- |
| 3 years | CHF 51,899 | CHF 4,152 | CHF 47,747 | 10.9% |
| 5 years | CHF 53,204 | CHF 4,256 | CHF 48,948 | 6.9% |
| 10 years | CHF 56,614 | CHF 4,529 | CHF 52,084 | 4.1% |
| 15 years | CHF 60,241 | CHF 4,819 | CHF 55,422 | 3.1% |

Buy-in of CHF 50,000, marginal rate of 30% (real cost of CHF 35,000), interest of 1.25% a year.

In this calculation, the conclusion is counter-intuitive: **the buy-in pays off most in the last years before retirement**, provided the three-year deadline is respected. At 40, a buy-in locks the money in for more than twenty years for a return that tends towards the fund's, and it deprives you of that sum for other projects. It remains attractive if your marginal rate is high and your fund pays a good return on assets, but the tax saving alone then weighs much less. The right moment depends on your situation: a tax or pension adviser can put figures on your case.

A buy-in is not lost for good to life projects: the assets can still be used to buy a home or to set up on your own account, and they can be paid out in cash, in whole or in part, to a person who leaves Switzerland for good. But each of these withdrawals counts as a lump sum withdrawal for the purposes of the three-year deadline, detailed in section 5.

## 4\. What if you take a pension rather than the lump sum?

The calculation changes in nature. There is no longer any tax on the lump sum, but a higher pension, taxed every year as ordinary income. The capital resulting from the buy-in is converted into a pension at the fund's conversion rate: **6.8% as the statutory minimum on the mandatory portion** at 65 (art. 14 LPP), but a freely set rate, often lower, on the extra-mandatory portion.

| Conversion rate (assumption) | Additional annual pension | After 25% tax on the pension | Years to recover CHF 35,000 |
| --- | --- | --- | --- |
| 5.0% | CHF 2,831 | CHF 2,123 | 16.5 years |
| 6.8% | CHF 3,850 | CHF 2,887 | 12.1 years |

Buy-in of CHF 50,000 ten years before retirement, grown to CHF 56,614 at 1.25% a year; real cost of CHF 35,000 with a marginal rate of 30%; assumed tax rate on the pension of 25%. Calculation without discounting.

When you take a pension, the buy-in is therefore a bet on longevity: the longer the pension is paid, the more it pays off, and the pension does not stop with age. On the other hand, there is no three-year trap: the deadline in article 79b applies only to lump sum payments.

## 5\. What happens if you withdraw capital within three years?

Article 79b para. 3 LPP is brief: **benefits resulting from a buy-in may not be paid out as a lump sum before a period of three years has elapsed**. Tax law has derived a severe rule from it, which the Federal Supreme Court has tightened ruling after ruling:

-   **The reversal is automatic.** Since a 2010 ruling (2C\_658/2009), any lump sum withdrawal within the three-year period causes the loss of the deduction for the buy-ins made during that period. ATF 148 II 189, handed down at the end of 2021, specifies that there is no need to examine whether there is tax avoidance: breaching the deadline is enough. If the deduction has already been granted, it is corrected by a supplementary tax assessment.
-   **The rule applies from one fund to another.** In a 2021 ruling (2C\_6/2021), an employee had bought in CHF 45,000 into their fund, then less than three years later withdrawn CHF 20,813 from a vested benefits account with another institution. The supplementary assessment covered CHF 20,813: the reversal is capped at the capital withdrawn, but it is not limited to the fund that received the buy-in.
-   **Several withdrawals count as capital**: the advance withdrawal to buy a home, the withdrawal to become self-employed and the cash payment on leaving for abroad for good. Taking a pension is not affected.
-   **The deadline is counted to the day**, from the date of the buy-in to the date the capital is paid out. The Geneva tax administration points this out: the deduction is not possible if you receive a 2nd pillar lump sum benefit less than three years, to the day, after the buy-in.

The cantons apply the rule with nuances. Under a practice published in 2015 in its Steuerbuch, Zurich for example does not reverse the deduction where buy-ins do not exceed CHF 12,000 a year; above that, the deduction for the entire buy-in is reversed, up to the capital withdrawn. One exception has been recognised by the Federal Supreme Court: a payment intended to fund an AVS bridging pension remains deductible despite a simultaneous withdrawal of capital.

**⚠️ A buy-in funded by a loan:** in ATF 142 II 399, a person had bought in CHF 81,500 using an interest-free loan, then withdrawn their capital less than two years later on taking early retirement. The deduction was refused for tax avoidance, even though it was a buy-in after a divorce, normally exempt from the three-year deadline. A buy-in must never be a round trip.

## 6\. Buy in all at once or over several years?

Since the income tax scale is progressive, every franc bought in brings income down into a less heavily taxed bracket. A buy-in of CHF 150,000 in a single year uses up the highest brackets, then is deducted at lower and lower rates: the average saving is below the initial marginal rate. Spreading the same amount over three or four years makes it possible to deduct each time at the highest marginal rate.

Spreading has one constraint: **each buy-in starts its own three-year period**. If you plan to withdraw your capital at 65, the last buy-in must take place no later than three years to the day before the payment. A typical timetable for retirement with a lump sum on 1 July 2032:

| Year | Action | To check |
| --- | --- | --- |
| 2026 | Request the calculation of the buy-in amount; first buy-in before the fund's deadline | Forgotten vested benefits, pillar 3a, advance withdrawal not repaid |
| 2027 and 2028 | Further buy-ins, each before the end of the year | Marginal rate for the year, financial health of the fund |
| Before 1 July 2029 | Last possible buy-in | Three years to the day before the capital is paid out |
| 1 July 2032 | Capital paid out | Deadline set by the fund's rules for choosing the lump sum |

A withdrawal in several stages, for example part as a lump sum and part as a pension, or capital paid by two institutions in different years, must be built into the same timetable. Our guide [LPP: simulator and withdrawal](https://www.ibani.com/en/guides/swiss-lpp-2nd-pillar-simulator-withdrawal) details the conditions for withdrawal.

## 7\. What risks does a buy-in carry?

-   **Interest below the assumption.** The minimum rate of 1.25% guarantees only the mandatory portion of the assets. In the event of underfunding, the fund may even, for five years at most, pay interest on retirement assets of up to 0.5 percentage points below the minimum rate (art. 65d para. 4 LPP). Before buying in, reading the funding ratio published in the fund's annual report is a useful precaution.
-   **A falling conversion rate.** For anyone who will take a pension, the value of the buy-in depends on the conversion rate applied at the time of retirement, which the fund can reduce on the extra-mandatory portion.
-   **The money is no longer available.** Apart from the withdrawal cases provided for by law, the capital bought in stays in the fund until retirement. A buy-in must never eat into the reserve you might need before then.
-   **Tax rules can change.** The taxation of lump sum withdrawals was put back on the table in 2025 by a Federal Council proposal as part of its budget relief programme. Article 38 LIFD nevertheless remains unchanged in the law in force and in the amendments already published for 2027 and 2028. A buy-in is calculated with the known rules, without certainty about those that will apply at withdrawal.

The minimum rate itself changes: on 31 August 2026, the Federal Commission for Occupational Pension Provision recommended raising it to 1.75% in 2027. The decision lies with the Federal Council, which had not yet taken it at the date of this guide.

## 8\. How do you buy in before the end of 2026?

The buy-in is deducted in the year in which it is paid. The Geneva tax administration asks you to state in the tax return the total amount of buy-ins made during the year. For a deduction on 2026 income, the money must therefore reach the fund in 2026. Some funds set an earlier internal deadline in December to process payments: the Medpension fund, for example, requires the payment to reach it by 15 December at the latest. The process takes place in four steps:

-   **Request the calculation of the buy-in amount** from the fund, which checks vested benefits, pillar 3a and advance withdrawals. The figure on the annual certificate may be several months old.
-   **Estimate your marginal rate** by simulating your 2026 tax with and without the buy-in, and choose the amount accordingly.
-   **Check your withdrawal timetable**: no capital, from this fund or another, must be paid out within three years.
-   **Pay before the fund's deadline**, with the reference requested, then keep the buy-in confirmation, to be attached to the tax return.

**💡 Pillar 3a, the other year-end buy-in:** since 2026, it has been possible to buy in unpaid pillar 3a contributions, provided the full contribution for the year has been paid (CHF 7,258 for an employee who is a member of a pension fund). The buy-in is limited to CHF 7,258 a year and only fills gaps arising from 2025 onwards (art. 7a OPP 3). For a small sum, it is often the simplest solution; for a large gap, only an LPP buy-in allows a significant deduction. The two can be combined. Our guide to [the three-pillar system](https://www.ibani.com/en/guides/the-swiss-three-pillars-system) puts them in perspective.

## 9\. Taxed at source or a cross-border worker: can you deduct the buy-in?

Withholding tax scales take account of ordinary 2nd pillar contributions, but not of a buy-in. To deduct it, you need a **subsequent ordinary assessment (TOU)**, which replaces the year's withholding with a full calculation of the tax, deductions included. The request must be filed **by 31 March of the following year at the latest**: for a buy-in in 2026, before 31 March 2027. Without a request, no additional deduction is granted.

| Situation | Is the buy-in deductible in Switzerland? | Legal basis |
| --- | --- | --- |
| Swiss resident taxed at source (B permit, L permit) | Yes, on request for a subsequent ordinary assessment | Art. 89a LIFD |
| Resident taxed at source with gross annual income of CHF 120,000 or more | Yes: the subsequent ordinary assessment is compulsory | Art. 9 of the ordinance on withholding tax |
| Non-resident taxed at source in Switzerland, at least 90% of whose worldwide gross income, spouse included, is taxable in Switzerland | Yes, on request, as a quasi-resident; the request is renewed every year and cannot be withdrawn | Art. 99a LIFD, art. 14 of the ordinance on withholding tax |
| Non-resident taxed at source in Switzerland, below the 90% threshold | No | — |
| Cross-border worker taxed in their country of residence | Question governed by the tax law of the country of residence | Law of the country of residence |

For a cross-border worker taxed at source in Switzerland, in Geneva for example, quasi-residence is therefore the only way in, and it must be requested every year. Cross-border workers within the meaning of the agreement between Switzerland and Italy on the taxation of cross-border workers cannot obtain a subsequent ordinary assessment on the basis of quasi-residence (art. 14 para. 3 of the ordinance on withholding tax): this route is not open to them for deducting a buy-in in Switzerland. Our guide on [correcting withholding tax in Geneva](https://www.ibani.com/en/guides/geneva-withholding-tax-correction-cross-border-workers) details the procedure and its deadlines.

For a cross-border worker taxed in their country of residence, Switzerland does not tax the salary, or only through a limited withholding, and the deduction of the buy-in is a matter for that country's tax administration. Caution is called for: in France, the Lyon administrative court of appeal ruled on 5 June 2025 (no. 24LY02533) that the buy-in in question did not fall within the contributions deductible without limit, in particular because the taxpayer had not shown that it related to compulsory contributions, and rejected their request to deduct the whole of their buy-in. The tax administration had allowed the deduction only as a concession, within a limit modelled on the buy-back of twelve quarters under the French scheme. Before a large buy-in, you should have the tax treatment confirmed in writing by the tax administration of your country of residence. Our [guide to cross-border worker taxes](https://www.ibani.com/en/guides/cross-border-worker-taxes-switzerland) sets out who taxes what depending on the canton of work.

**⚠️ Leaving Switzerland within three years:** the cash payment of all or part of the assets on leaving Switzerland for good counts as a lump sum withdrawal. Buying in, then withdrawing all or part of the assets in cash on a departure less than three years later, causes the loss of the deduction, up to the amount withdrawn. Leaving the assets in a vested benefits account does not have this effect. Our [checklist for leaving Switzerland](https://www.ibani.com/en/guides/leaving-switzerland-checklist) lists the steps relating to the 2nd pillar.

## 10\. Funding a buy-in with savings in euros: what does the exchange cost?

A buy-in is paid in francs. For a person from the euro area who funds the buy-in with savings still held in euros, the conversion is a cost that has to be deducted from the gain calculated above. On a buy-in of CHF 50,000, an exchange margin of 2% (assumption) represents around CHF 1,000, or almost 7% of the tax saving of a taxpayer with a marginal rate of 30%. The same question arises again on the way out, if the capital has to go back to a euro account.

[ibani](https://www.ibani.com/en/app) is a Geneva-based financial intermediary, not a bank, specialising in transfers between the euro area and Switzerland, with a Swiss IBAN in your name. The exchange margin is degressive, from 0.40% to 0.15% depending on the amount; it is 0.35% between CHF 10,000 and 50,000, that is at most CHF 175 on CHF 50,000, with no transfer fees. You choose when to convert before transferring the francs to your fund. The daily rate can be followed on our [CHF-EUR converter](https://www.ibani.com/en/currency-converter/chf-to-eur-rate), and our [pension withdrawal](https://www.ibani.com/en/personal/pension-withdrawal) page covers the reverse journey, at retirement.

## 11\. Frequently asked questions

No. Whether it pays off depends on three figures: the marginal tax rate in the year of payment, the number of years between the buy-in and the withdrawal, and the tax paid on the lump sum on the way out. With a marginal rate of 30%, interest of 1.25% and a tax of 8% on the capital withdrawn, a buy-in of CHF 50,000 yields the equivalent of 10.9% a year if it is withdrawn after three years, 6.9% after five years, 4.1% after ten years and 3.1% after fifteen years. The lower the marginal rate and the longer the horizon, the more the tax advantage is diluted. A buy-in also loses all its benefit if the capital is withdrawn less than three years after the payment: the deduction is then reversed.

The amount of the buy-in multiplied by the marginal tax rate, that is the rate that applies to the top slice of income. The buy-in is deductible from taxable income, with no tax ceiling of its own, for direct federal tax as well as for cantonal and communal taxes (art. 33 para. 1 let. d LIFD and art. 9 para. 2 let. d LHID). With a marginal rate of 30%, a buy-in of CHF 50,000 reduces tax by CHF 15,000. A very large buy-in, however, brings income down into less heavily taxed brackets: the average saving falls, which argues for spreading the buy-in over several years.

Article 79b para. 3 LPP prohibits paying out benefits resulting from a buy-in as a lump sum before a period of three years has elapsed. The Federal Supreme Court draws a strict rule from this: any lump sum withdrawal within that period leads to the reversal of the buy-in deduction, without any need to prove tax avoidance (ATF 148 II 189). The reversal applies even if the capital comes from another institution, for example a vested benefits account, and it covers at most the amount withdrawn. Leaving for abroad with a cash withdrawal or an advance withdrawal for housing count as lump sum withdrawals. Taking a pension is not affected, and the Federal Supreme Court allows an exception for a payment that funds an AVS bridging pension.

The buy-in is deducted in the year in which it is paid: for a deduction on 2026 income, the money must reach the pension fund in 2026. Some funds set a deadline earlier than 31 December so that the payment can be processed in time, for example 15 December. You must also first request the calculation of the buy-in amount, which the fund establishes on request. In practice, the process should start in October or November.

Yes, but only through a subsequent ordinary assessment (TOU), to be requested by 31 March of the following year at the latest. A Swiss resident taxed at source can always request it (art. 89a LIFD). A non-resident can request it only if they are a quasi-resident, that is if at least 90% of their worldwide gross income, spouse included, is taxable in Switzerland (art. 99a LIFD and art. 14 of the ordinance on withholding tax); cross-border workers covered by the agreement between Switzerland and Italy are excluded. A cross-border worker taxed in their country of residence falls under the rules of that country: in France, an administrative court of appeal refused in 2025 the deduction of an LPP buy-in beyond what the tax administration had allowed as a concession.

A person who arrives from abroad and has never been a member of a Swiss pension fund may not buy in more than 20% of their insured salary per year during the five years following their entry into the fund (art. 60b of the OPP 2 ordinance). After those five years, the fund must allow them to buy in all of their gaps. With an insured salary of CHF 80,000, the ceiling is therefore CHF 16,000 a year for five years. The limit does not apply to the direct transfer of assets from a foreign occupational pension scheme, if the fund accepts it and if no tax deduction is claimed for that transfer.

The two are not in the same league. Possible since 2026, a buy-in to pillar 3a is limited to CHF 7,258 a year and only fills gaps arising from 2025 onwards, provided the full contribution for the year has been paid (art. 7a OPP 3). An LPP buy-in can reach tens of thousands of francs, depending on the potential stated by the fund. For a small amount, pillar 3a is often simpler; for a large gap, only the LPP makes it possible to deduct a significant amount in one go. Both are deductible and can be combined.

**Disclaimer:** this guide describes the rules in force on 5 October 2026. The returns shown are calculation results based on explicit assumptions (marginal rate, credited interest, tax on the lump sum), not observed or guaranteed rates. Each situation depends on the pension fund's rules, the canton and commune of residence, marital status, the withdrawal timetable and, for non-residents, the tax law of the country of residence. This information is provided for guidance only and does not constitute legal advice, tax advice or investment advice, nor a recommendation on currency exchange. Have your situation confirmed by your pension fund and by the competent tax administration before any buy-in.

**Methodology and sources:** the buy-in rules (ceiling, three-year lock-in, advance withdrawal for housing, divorce) are cited from [article 79b of the Federal Act on Occupational Old-Age, Survivors' and Invalidity Pension Provision (LPP)](https://www.fedlex.admin.ch/eli/cc/1983/797_797_797/fr#art_79_b), as at 1 January 2025; the same act provides the minimum conversion rate (art. 14) and the reduced interest in the event of underfunding (art. 65d). The calculation of the buy-in amount, the 20% limit for people arriving from abroad and the minimum interest rate of 1.25% come from the [OPP 2 ordinance](https://www.fedlex.admin.ch/eli/cc/1984/543_543_543/fr) (art. 12, 60a and 60b, as at 1 August 2026) and from the [Federal Council press release of 5 November 2025](https://www.admin.ch/fr/newnsb/8QdyDi9kz0trzgbwDud08). Deductibility, the separate taxation of the lump sum and the subsequent ordinary assessment are taken from the [Federal Act on Direct Federal Taxation](https://www.fedlex.admin.ch/eli/cc/1991/1184_1184_1184/fr) (art. 33, 38, 89a and 99a), the [Federal Act on the Harmonisation of Direct Taxation](https://www.fedlex.admin.ch/eli/cc/1991/1256_1256_1256/fr) (art. 9) and the [FDF ordinance on withholding tax](https://www.fedlex.admin.ch/eli/cc/2018/274/fr) (art. 9 and 14). The tax burden on lump sum benefits was simulated on 5 October 2026 with the [Federal Tax Administration's tax calculator](https://swisstaxcalculator.estv.admin.ch); these are simulation results, not a published statistic. The case law cited is that of the Federal Supreme Court: ruling [2C\_658/2009 of 12 March 2010](https://www.bger.ch/ext/eurospider/live/fr/php/aza/http/index.php?lang=fr&type=highlight_simple_query&query_words=2C_658%2F2009&highlight_docid=2010-03-12-2C_658-2009&top_subcollection_aza=all&from_date=&to_date=&page=1&rank=5), [ATF 148 II 189](https://www.bger.ch/ext/eurospider/live/fr/php/clir/http/index.php?highlight_docid=atf%3A%2F%2F148-II-189%3Afr&lang=fr&type=show_document), ruling [2C\_6/2021 of 12 January 2021](https://www.bger.ch/ext/eurospider/live/fr/php/aza/http/index.php?lang=fr&type=highlight_simple_query&query_words=2C_6%2F2021&highlight_docid=2021-01-12-2C_6-2021&top_subcollection_aza=all&from_date=&to_date=&page=1&rank=1) and [ATF 142 II 399](https://www.bger.ch/ext/eurospider/live/fr/php/clir/http/index.php?highlight_docid=atf%3A%2F%2F142-II-399%3Afr&lang=fr&type=show_document). The list of withdrawals treated as a lump sum payment follows the [canton of Schwyz information sheet on lock-in periods](https://www.sz.ch/public/upload/assets/61233/Merkblatt_Einkauf_in_die_berufliche_Vorsorge_Sperrfristen_beim_Kapitalbezug.pdf?fp=3) (14 June 2022). The 2025 proposal on the taxation of lump sum withdrawals is presented in the [Federal Finance Administration's fact sheet](https://www.efv.admin.ch/dam/de/sd-web/GRWDOP-yjk7y/Faktenblatt%20Besteuerung%20Kapitalbez%C3%BCge%20D.pdf). The Zurich practice is described in the [Steuerbuch of the canton of Zurich (ZStB 31.3)](https://www.zh.ch/de/steuern-finanzen/steuern/treuhaender/steuerbuch/steuerbuch-definition/zstb-31-3.html). The Geneva rules on the deduction of buy-ins and the three-year deadline counted to the day come from the [Geneva tax administration's page on deducting buy-ins](https://www.ge.ch/impot-prevoyance-retraite-du-2e-3e-pilier/comment-deduire-rachats-au-2e-3e-pilier), and the subsequent ordinary assessment from its page [“Quand demander ou annoncer une TOU ?”](https://www.ge.ch/demande-rectification-taxation-ordinaire-ulterieure/quand-demander-annoncer-taxation-ordinaire-ulterieure). The 15 December deadline is that of the [Medpension fund's buy-in information sheet](https://www.medpension.ch/hubfs/Dokumente/Merkbl%C3%A4tter%20-%20Formulare%20-%20Reglemente/Merkbl%C3%A4tter/Franz%C3%B6sisch/102021025f_Merkblatt%20Einkauf.pdf?hsLang=fr). The pillar 3a buy-in follows [article 7a of the OPP 3 ordinance](https://www.fedlex.admin.ch/eli/cc/1985/1778_1778_1778/fr) and the [FAQ of the Federal Social Insurance Office](https://faq.bsv.admin.ch/fr/prevoyance-professionnelle-et-3e-pilier/rachats-dans-le-pilier-3a/quel-est-le-montant-maximal-dun). The recommendation of a minimum rate of 1.75% for 2027 is taken from the [press release of the Federal Commission for Occupational Pension Provision of 31 August 2026](https://www.mission-eu-bruessel.eda.admin.ch/fr/newnsb/0OLsO33MmzIC). The ruling of the Lyon administrative court of appeal of 5 June 2025, no. 24LY02533, can be consulted on [Juricaf](https://juricaf.org/arret/FRANCE-COURADMINISTRATIVEDAPPELDELYON-20250605-24LY02533).

## Savings in euros, a pension fund in francs?

Our Geneva-based team supports individuals who need to convert money between the euro and the Swiss franc, for a buy-in as well as for repatriating pension capital. A financial intermediary audited for its activity, affiliated with SO-FIT (SRO).

We are available by [email](https://www.ibani.com/en/contact) or by [phone](https://www.ibani.com/en/contact) from Monday to Friday.

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