How much Pillar 3a can I withdraw for buying a house?

You can use the entire 3a balance as an early withdrawal for owner-occupied residential property. The minimum withdrawal is CHF 20'000. Special restrictions apply from the age of 50.

What taxes apply to an early Pillar 3a withdrawal?

The advance withdrawal is taxed separately from the rest of your income at a reduced rate. In the Canton of Zürich, this is around 3–8%, depending on the amount. The tax is due immediately.

Which is better: Pillar 3a advance withdrawal or pledging?

Pledging has the advantage that the Pillar 3a assets remain invested in a tax-privileged way and the tax deduction is retained. However, you need sufficient equity from other sources.

How long does a Pillar 3a advance withdrawal take?

Allow 2–4 weeks from the submission of the complete documents to the pension foundation. Therefore, plan the advance withdrawal well in advance of the notary appointment.

Pillar 3a: Optimal Early Withdrawal