3rd pillar and renovation work
Renovating your home, particularly energy renovation, is a significant investment that can be partially financed through your 3rd pillar. The home ownership promotion (EPL) framework allows you to withdraw your 3a capital for value-adding work on your primary residence. Here are the conditions, procedure and advantages of this option.
What work can be financed by the 3rd pillar?
EPL withdrawal from the 3rd pillar is authorized for work that increases the value of your primary residence. The distinction between value-adding work and routine maintenance is essential:
Eligible work (value-adding)
- Energy renovation: Insulation of the roof, walls and floor, replacement of windows with double or triple glazing
- Heating system: Replacement of an oil heating system with a heat pump, installation of underfloor heating
- Renewable energy: Installation of photovoltaic or thermal solar panels
- Transformation: Attic conversion, extension, addition of a conservatory
- Complete renovation: Refurbishment of the kitchen, bathroom, electrical or plumbing installations
- Accessibility: Adaptation work for persons with reduced mobility
Non-eligible work (routine maintenance)
- Interior or exterior painting without transformation
- Minor repairs (taps, locks)
- Garden and outdoor area maintenance
- Like-for-like replacement of end-of-life equipment
Good to know: The distinction between value-adding work and maintenance is not always clear-cut. If in doubt, consult your pension institution which can confirm the eligibility of your work before initiating the withdrawal procedure.
Energy renovation: a double tax advantage
Energy renovation of your home offers a particularly attractive double tax advantage:
- Work deduction: Energy investments (insulation, heating, solar panels) can be deducted from your taxable income in the year they are carried out. This deduction applies at both federal and cantonal level.
- Possible spreading: If the work is substantial, you can spread the deduction over several tax years (depending on the canton), which optimizes the advantage by avoiding exceeding the most favorable tax brackets.
Combined with the 3rd pillar withdrawal, this strategy allows you to finance the work while benefiting from significant tax deductions.
Available subsidies in 2026
In addition to the 3rd pillar, several subsidy programs can finance part of your work:
| Program | Work covered | Indicative amount |
|---|---|---|
| Buildings Programme (federal) | Insulation, windows, overall renovation | CHF 40-60/m2 (insulation) |
| Cantonal programs | Heating, solar, geothermal | Varies by canton |
| ProKilowatt | Electrical efficiency | Depends on project |
| Municipalities | Various (depending on municipality) | Variable |
These subsidies can be combined with the 3rd pillar withdrawal and tax deductions.
Withdrawal procedure for renovation work
- Obtain detailed quotes
Have quotes prepared by qualified contractors for all planned work. Quotes must detail the nature of work and amounts.
- Verify eligibility
Contact your 3a institution to confirm that the planned work is eligible for EPL withdrawal.
- Apply for subsidies
Submit your subsidy applications before starting the work (mandatory condition for most programs).
- Prepare your withdrawal file
- EPL withdrawal form
- Quotes or contractor agreements
- Land registry extract (proof of ownership)
- Identity document
- Spousal consent (if applicable)
- Submit the application
Send the complete file. Allow 2 to 4 weeks for processing.
- Carry out the work
Once you receive the capital, have the work done. Keep all invoices for your tax return.
Example of energy renovation financing
Here is a concrete example for a complete energy renovation of a detached house:
| Item | Cost |
|---|---|
| Facade and roof insulation | CHF 45,000 |
| Heat pump (replacing oil boiler) | CHF 35,000 |
| Photovoltaic solar panels | CHF 20,000 |
| Triple-glazed windows | CHF 25,000 |
| Total work | CHF 125,000 |
| Funding source | Amount |
|---|---|
| 3rd pillar withdrawal (EPL) | CHF 80,000 |
| Subsidies (Buildings Programme + canton) | CHF 20,000 |
| Personal savings | CHF 25,000 |
| Total financing | CHF 125,000 |
In this example, the tax deduction for energy work (CHF 125,000 deductible from income) more than compensates for the 3rd pillar withdrawal tax (approximately CHF 5,000 to 8,000 depending on the canton). The operation is tax-neutral or even advantageous.
Points of attention
- 5-year delay: An EPL withdrawal can only be made every 5 years. Plan your work accordingly.
- Impact on pension: The withdrawn capital will no longer be available for your retirement. Remember to continue your 3a contributions after the work.
- Keeping receipts: Keep all invoices and quotes for at least 10 years to justify the withdrawal and tax deductions.
- Tax timing: Coordinate the withdrawal and work to optimize deductions on your tax return. It may be wise to spread the work over 2 tax years.
Tip: Before dipping into your 3rd pillar, explore all available funding sources: subsidies, mortgage increase, renovation loans. Combine these sources to minimize the impact on your pension. Get free advice.
Documenting work for the tax deduction
Proper documentation of your renovation work is essential to fully benefit from tax deductions. Cantonal tax authorities require precise supporting documents to accept the deduction of value-adding investments.
Documents to keep
- Detailed quotes: each work item must be documented by a separate quote indicating the exact nature of the work, materials used and costs
- Final invoices: invoices must match the quotes and clearly mention the property address, execution date and details of services
- Contractor agreements: for major work, keep signed contracts with contractors and companies
- Before and after photos: photographic documentation provides additional useful evidence in case of a tax audit
- Energy certificate (CECB): for energy renovations, the certificate before and after work demonstrates the improvement in building performance
- Proof of payment: bank statements showing transfers to contractors, payment receipts
Distinction between maintenance and value-adding work
Tax authorities distinguish between maintenance work (deductible from taxable income even without a 3a withdrawal) and value-adding investments (also deductible in most cantons). Ask your fiduciary or cantonal tax administration to help you correctly classify each work item. This distinction is crucial as it determines the amount of your tax deduction.
To learn more about the legal framework for early withdrawal, see our page on 3rd pillar withdrawal conditions.
Typical timeline for a renovation project with the 3rd pillar
A renovation project financed by the 3rd pillar requires rigorous planning. Here is an indicative timeline for a complete energy renovation project:
Phase 1: preparation (3 to 6 months before work)
- Month 1: Carry out an energy audit (CECB) to identify priority work. Indicative cost: CHF 1,000 to CHF 2,000
- Month 2: Obtain quotes from several contractors. Compare at least 3 offers per work item
- Month 3: Submit subsidy applications to the Buildings Programme and cantonal programs. This step is mandatory before starting work
- Month 3-4: Prepare the EPL withdrawal file and send it to your 3a institution. Allow 2 to 4 weeks processing time
Phase 2: execution (variable duration depending on scope)
- Month 4-5: Receive the 3a capital and subsidy confirmations. Sign contractor agreements
- Month 5-8: Carry out the work. For a complete energy renovation (insulation, heating, windows), allow 3 to 4 months of construction
- Month 8: Accept the completed work, verify compliance and pay final invoices
Phase 3: tax and administrative matters (after work)
- As soon as work is complete: Gather all invoices and classify them by type (maintenance vs value-adding)
- Tax return: Deduct eligible work from your taxable income. If the amount is large, consider spreading over 2 tax years (in cantons that allow it)
- New CECB: Have a new energy certificate prepared to document the improvement
- Open a new 3a: If your 3a account was closed by the withdrawal, immediately open a new account to continue benefiting from the annual tax deduction
Tax tip: If your work spans two calendar years, you can spread the tax deductions over those two years. This strategy is particularly attractive if the total amount of work is high, as it avoids saturating the most favorable tax brackets in a single year.