Tax returns in Switzerland with a B or L permit: When is it worth filing?
Many people holding a B or L residence permit in Switzerland believe they don't need to file a tax return because income tax is already deducted directly from their salary.
And that's partly true. In many cases, they are subject to withholding tax, also known as tax at source.
But here's the important part: that doesn't necessarily mean doing nothing is your best option.
In some situations, not reviewing your tax position could mean missing out on valuable deductions, including those related to Pillar 3a retirement savings.
In this article, I'll explain when filing a tax return may be required, when it might be worth considering voluntarily and what you should check before making a decision.
The essentials in 30 seconds
If you have a B or L permit in Switzerland, here's what you need to know:
In certain circumstances, filing a tax return is mandatory.
In other cases, you may be able to request ordinary taxation voluntarily.
Some deductions are not individually reflected in the withholding tax deducted from your salary.
Pillar 3a contributions may reduce your taxable income.
A tax return can result in a refund, but it can also lead to additional tax being payable.
Who needs to file a tax return in Switzerland with a B or L permit?
Not everyone with a B or L permit has the same tax obligations.
As a general rule, if you're subject to withholding tax, your employer deducts income tax directly from your salary.
However, this doesn't mean you'll never need to file a tax return.
Ordinary taxation may be mandatory in certain situations, including when:
Your annual gross employment income reaches the applicable threshold, generally CHF 120,000.
You have additional income that is not subject to withholding tax.
You hold assets that trigger a tax declaration obligation.
You have foreign income or assets that must be declared.
Your personal circumstances meet other requirements under the applicable cantonal tax rules.
Even if filing isn't mandatory, you may be able to request a subsequent ordinary tax assessment (taxation ordinaire ultérieure or nachträgliche ordentliche Veranlagung).
Whether this is worthwhile depends on your circumstances.
When might filing a tax return voluntarily be worthwhile?
Withholding tax is calculated using standardised rates and information about your personal circumstances.
However, it doesn't always reflect every deduction you might be entitled to claim.
In certain cases, requesting ordinary taxation may allow you to:
Claim eligible deductions not individually accounted for through withholding tax.
Have your tax liability calculated based on your broader financial circumstances.
Take eligible retirement savings contributions into account.
Potentially recover some tax you've already paid.
But there's an important point: ordinary taxation considers your overall tax situation, not just the deductions that could save you money.
You could end up paying more rather than receiving a refund. For residents in Switzerland, a voluntary request can also affect how they are taxed in subsequent years.
That's why it's worth reviewing the figures before submitting a request.
What expenses can you deduct with a B or L permit?
The deductions available depend on your canton and personal circumstances, but they may include:
Eligible commuting expenses.
Certain meal expenses incurred while working away from home.
Contributions to Pillar 3a retirement savings.
Certain insurance premiums, within applicable limits.
Eligible interest paid on debts.
Qualifying professional expenses.
Childcare costs and family-related deductions, where applicable.
Relevant income, assets and deductible expenses associated with declared property or investments.
Not every expense is deductible, and limits or specific conditions may apply.
A careful review can help you understand which deductions are relevant to your situation.
Could filing a tax return mean paying more tax in Switzerland?
Yes, absolutely.
Filing a tax return doesn't automatically mean receiving money back.
Depending on your income, assets, deductions and the tax already withheld from your salary, the result could be:
A tax refund.
Little or no difference.
An additional tax bill.
That's why it's important not to present tax filing as a guaranteed way to save money.
The real benefit of reviewing your situation is understanding your obligations and making an informed decision.
How can Pillar 3a help you pay less tax in Switzerland?
This is one of the most important areas to consider.
Eligible contributions to Pillar 3a can reduce your taxable income, up to the applicable annual contribution limit.
If you're subject to withholding tax, you generally need to request or undergo a subsequent ordinary tax assessment to claim an individual Pillar 3a deduction.
Depending on your circumstances, this could reduce your final tax liability.
However, Pillar 3a contributions do not guarantee a refund. The overall result depends on your complete tax situation.
I've seen how reviewing retirement contributions and other eligible deductions can make a meaningful difference to a client's tax position.
It's not magic. It's financial planning.
A real example from one of my clients
One of my clients held a B permit, earned more than CHF 120,000 a year and lived in Zurich.
In her first year in Switzerland, she had to pay more than CHF 3,000 in additional taxes.
The following year:
She increased her occupational pension contributions (BVG/LPP) through an option offered by her employer.
She made the maximum permitted contribution to Pillar 3a, which was CHF 7,258 for the year concerned.
The result? Instead of receiving another additional tax bill of more than CHF 3,000, she received a tax refund of over CHF 1,500 the following year.
What changed? She reviewed her financial situation and planned her retirement contributions more carefully.
This is an individual example, not a guaranteed outcome. Changes in income, deductions and other circumstances can also affect the final tax calculation.
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A common mistake
Many people with a B or L permit don't consider filing a tax return because:
They believe they're not allowed to.
They assume it wouldn't be worthwhile.
They don't know which expenses may be deductible.
They think the withholding tax deducted from their salary already reflects their entire tax situation.
But that isn't always the case.
I'm not saying everyone will receive a refund. I'm saying it's worth understanding your individual circumstances before deciding what to do.
So, should you file a tax return?
It depends.
And that's exactly why it's worth reviewing your situation carefully.
The answer may depend on:
Your salary.
Your canton and municipality.
Your family circumstances.
Your income and assets, including those held abroad.
Your eligible deductions.
Whether you contribute to Pillar 3a.
The key is to compare your potential tax position before making a voluntary request, while respecting any applicable filing obligations and deadlines.
What if you don't have Pillar 3a?
If you're subject to withholding tax, your employer generally deducts tax directly from your salary according to the applicable withholding tax rate.
That calculation already takes certain standardised circumstances into account, but it may not reflect all the individual deductions you could claim through ordinary taxation.
If you don't contribute to Pillar 3a, you may be missing a tax-efficient retirement savings opportunity.
However, that doesn't mean opening a Pillar 3a account is automatically the right choice for everyone.
Your financial priorities, liquidity needs and long-term plans should come first.
Would you like to know whether filing a tax return could be worthwhile for you?
I'm Jesús Gómez, a FINMA-registered insurance advisor in Switzerland (registration number F01575262). I help people living in Switzerland understand their insurance, retirement savings and financial planning options.
If you have a B or L permit and want to review your tax situation, I can help you explore:
Whether an ordinary tax assessment may be relevant to your circumstances.
Which potential deductions are worth reviewing.
How Pillar 3a contributions could affect your taxable income.
When specialist tax advice may be needed before submitting a request.
Frequently asked questions
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Not always. In many cases, income tax is deducted directly from your salary through withholding tax. However, depending on your income, assets and personal circumstances, filing a tax return may be mandatory.
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Yes. If you meet the applicable requirements, you can request a subsequent ordinary tax assessment to claim eligible deductions. However, this doesn't always result in tax savings, and the decision may affect how you're taxed in future years.
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It depends on your canton and personal circumstances. Eligible deductions may include commuting expenses, certain meal costs, childcare, insurance premiums, debt interest and Pillar 3a contributions, subject to the applicable rules and limits.
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Yes. Eligible Pillar 3a contributions can reduce your taxable income. If you're subject to withholding tax, you generally need a subsequent ordinary tax assessment to claim the individual deduction. The actual tax savings depend on your circumstances.
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Yes. Your tax assessment could result in a refund, no significant difference or an additional payment, depending on your overall tax situation and the amount already withheld from your salary.