What Swiss taxes apply to life insurance?

I just took out a permanent life insurance policy which I plan to use for retirement saving. What taxes apply to life insurance policies in Switzerland?

Hi there,

How your life insurance policy is taxed depends on whether it falls under the 3a or the 3b category of Swiss retirement savings.

If you have a 3a whole life insurance policy, you do not need to declare the cash value of the policy in your tax returns because it is not subject to wealth tax. Your savings will only be taxed when you cash out your policy upon reaching the legal age. The premiums you pay can be deducted from taxable income within the limits applicable to 3a deductions.

If you have a 3b whole life insurance policy, you need to declare the cash value of your policy (the savings portion) as wealth for tax purposes. Premiums can be deducted - at least in part - from taxable income using the tax deduction for insurance premiums.

Best regards from Moneyguru

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