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Anexpat'sguidetoSwisstaxes
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Ifyou'reanexpatlivingandworkinginSwitzerland,thisguideoutlinesfilinga
Swisstaxreturnanddeductionsforforeignindividualsandcompanies.
IfyouareaforeignerlivingandworkinginSwitzerland,youwilllikelybeliabletopay
Swisstaxes.However,whenfilingyourSwisstaxreturn,youmayalsobeabletoclaim
certaintaxexpensesanddeductionsasaforeigner.
TheSwisstaxsystemisquitecomplexbecausetheconfederationthe26cantonsand
approximately2,300municipalitieslevytheirowntaxes,whicharebasedonthe
federalconstitutionand26cantonalconstitutions.
CertaincircumstancesdictatewhoneedstopaySwisstaxes,andhowmuch,whichare

CertaincircumstancesdictatewhoneedstopaySwisstaxes,andhowmuch,whichare
outlinedbelow.DespiteacomplextaxsysteminSwitzerland,thisguidewillhelpyou
throughthemazeofSwisstaxes.
WhoneedstopaySwisstaxes?
ResidentindividualsortemporaryresidentsinSwitzerlandaresubjecttounlimitedtax
liability.ThesameappliestoSwissresidentlegalentities.
Limitedtaxliabilityappliestononresidentindividualsandcompanieshavingeconomic
relationstoSwitzerland.Inthesecases,thetaxisleviedonlyonspecificitemsof
incomethatoriginateinSwitzerland.
Residenceisdefinedastheplacewhereapersonstayswiththeintentionofsettling
permanentlyandwhichthereforeprovidesthecentreofhis/herpersonalandbusiness
interests.Apersonwillalsobeconsideredresidentfortaxpurposesifhe/sheremainsin
thecountryforaprotractedperiod,typicallymorethan90days(30daysifworking),
evenifhe/sheisnotengagedingainfulactivity.
Companiesareconsideredresidentwheneithertheirregisteredofficeortheiractual
administrationisinSwitzerland.
WhichSwisstaxesarelevied?
Switzerlandplacestaxesonincomeandwealth(directtaxes),aswellasongoodsand
services(indirecttaxes).Inaddition,mostofthecantonslevyaninheritanceandgifttax
(thatexcludesspousesanddirectdescendants),ataxongainsderivedfromthesaleof
immovablepropertyandcertainothertaxesanddues.
Onaninternationalscale,taxesinSwitzerlandarerelativelymoderate,with
considerabledifferencesbetweenthevariouscantonsandmunicipalities.
DifferentlevelsoftaxationinSwitzerland
TounderstandtheSwisstaxsystem,itisimportanttoknowthattherearedifferenttax
levels.Taxesareleviedbytheconfederation,the26cantonsandapproximately2,300
municipalities.
Thedelimitationoftaxationpowersisgovernedbythefederalandcantonal
constitutions.Thecantonsexercisealltherightsofasovereignstate.Theyare
authorisedtolevyanytypeoftaxaslongastheFederalConstitutiondoesnotreservea
certainrightfortheconfederation.Thereare,however,onlyafewtypesoftaxesfor
whichtheconfederationclaimsexclusivetaxationauthority(VAT,specialexciseduties,

whichtheconfederationclaimsexclusivetaxationauthority(VAT,specialexciseduties,
withholdingtax,andcustomduties).Consequently,thecantonsaregivenwidelatitude
inthecreationoftheirowntaxlegislation.Themunicipalitiesareempoweredtoonlylevy
thosetaxesthatareauthorisedbytheconstitutionoftheirrespectivecanton.
Inaddition,theparishesofthethreenationalchurches(RomanCatholic,Protestantor
ChristianCatholic)levyachurchtaxontheirmembersinalmostallcantons,andusually
alsoonthelegalentitiesliablefortaxinthecanton.
Thelevelsoftaxationauthorityare:
1. FederalgovernedbytheFederalConstitution.
2. Cantonalgovernedbythecanton.
3. Municipalgovernedbythecommune,ie.thetownyoulivein.
4. Churchmembersofoneofthethreenationalchurches(RomanandChristianCatholic,aswellasProtestant)aretaxedinalmostallcantons.

Thefollowingtabledepictstheincomeandwealthtaxesleviedateachlevel,including
thechurchtax:

Taxesforbusinesses
AnycompanywitharegisteredofficeoradministrationinSwitzerlandwillbeliablefor
unlimitedtax,andforeigncompaniesabroadareliableforlimitedtaxationiftheyhold
realestateorapermanentestablishmentinSwitzlerand.Theinternationalcomparison
showsthatSwitzerlandisaveryattractivelocationforcorporatetaxpayers.Reada
detailedguideontaxesforbusinessesinSwitzerland(/ch/finance/tax/Taxesfor
businessesinSwitzerland_452226.html).
Swisstaxesliableonindividualincomeandwealth
SwissresidentsortemporaryresidentsperforminggainfulactivitiesinSwitzerlandare

SwissresidentsortemporaryresidentsperforminggainfulactivitiesinSwitzerlandare
subjecttounlimited(worldwide)taxliability,withtaxtreatyprovisionsprevailing.Limited
taxliabilityappliestononresidentindividualshavingspecificeconomicrelationswith
Switzerland.Insuchcases,thetaxisnotleviedonaninternationalbasisbutonlyon
specificitemsofincomehavingtheirsourceinSwitzerland(eg.property,permanent
establishments,etc.).
ItisimportanttonotethatSwisstaxlawsarebasedontheprinciplethattheincomeand
wealthofafamilyrepresentsaneconomicunitandistaxedtogether.Inotherwords,
onetaxreturnissubmittedperhousehold.Consequently,theincomeandwealthofboth
spousesinajointhousehold(and,asarule,alsotheincomeandwealthofunderaged
children)arecombinedwiththeincomeofthepersonwhoexercisesparentalauthority.
Highincomeearnerstaxassessment
ForeignemployeesresidinginSwitzerlandwhosegrosssalaryexceedsCHF120,000
peryear(CHF500,000inGeneva)areobligedtofileataxreturnfortheirworldwide
incomeandassets.Thetaxwithheldfromsalaryiscreditedinterestfreeagainstthe
assessedtax.
Asseststaxassessment
ForeignemployeesresidinginSwitzerlandwhosegrosssalarydoesnotexceedCHF
120,000peryear(CHF500,000inGeneva)butwhohaveadditionalsourcesofincome
oradditionalassets(eg.incomefromsecuritiesorrealestateproperty)arealsoobliged
tofileataxreturn.However,inmostcantonsthisisonlyfortheadditionalincomeor
assets.
Foreignemployees:Witheldincometax
Foreignemployees(withoutaCpermit)havethefiscalamountdeducteddirectlyfrom
theirsalaryeachmonthbytheirSwissemployer.Theratesarelowerthantheratesof
theassessedincometaxesbecausetheyapplytothegrossincome.Alltypical
deductionsandallowancesarestandardisedanddirectlyincludedinthetariffs.The
tariffsaregenerallyprogressive(ie.themoreyouearn,thehigherthetaxrate)andtake
intoaccountwhetheryouaremarriedorsingle,livingwithchildrenorsubjecttochurch
tax.
Thetaxwithheldatsourcedoescovertaxesofalltaxlevelsseethelevelsoftaxation
table.
Correctionofwithholdingtax
Ifyouareaforeignemployeewithtaxdeductedfromyoursalaryandifyouarenot
requiredtofileataxreturn,youcouldeventuallyreduceyourtaxburdenbysubmittinga

claimforthecorrectionofwithholdingtax.Thismayleadtoapartialtaxrefund.

claimforthecorrectionofwithholdingtax.Thismayleadtoapartialtaxrefund.
Thecorrectionclaimcanbesubmittedforthefollowingitems:
Costofinternationalweeklyresidence
Debtinterest(consumerloansandcreditcards)
Furthereducationandretrainingcosts
Healthandaccidentcosts
Costsassociatedwithdisability
Supportpayments
Alimonypayments
Contributionsinrecognisedformstoownpensionprovisioning(pillar3a)
Purchasesofcontributionyearsinapensionfund(2ndpillar)
Exceptionaltravelexpenses(over10,000kmperannum)
Childcarecosts
Donations.

Suchaclaimcanbesubmittedinmostofthecantons.Usuallythecantonsprovidea
specialformthatneedstobecompletedandtheadditionaldeductionsmustbeproperly
evidenced.Somecantonsrequirecompletionofafulltaxreturninordertohavethese
deductionstakenintoaccount.
Ifacorrectionofwithholdingtaxisappliedfor,theapplicationhastobesubmittedby31
Marchofthefollowingyear.Inmostcantons,thisisafixeddeadline,whichcannotbe
extended.
FilinganannualSwisstaxreturnasanexpat
Swisscitizens,foreignerswithapermanentresidencepermitC,orforeignersmarriedto
aSwisscitizen,needtofileataxreturneachyear.Somecantonshaveincorporated
additionalcriteriaintheirtaxlawsthatrequireanordinarytaxassessmentofforeign
residentsinSwitzerland,eg.ifrealestateisownedinthecanton.Anannualtaxreturnis
alsodueifyouareworkingasaselfemployedpersonorasanemployeeofaforeign
employer.
InSwitzerland,thetaxyearcorrespondstothecalendaryear.Thusthetaxyearendis
31December.Formostcantons,ataxreturnmustbefilednormallywithinthreemonths
aftertheendofthetaxperiod.Mostcantonsallowonefreedeadlineextensionbutany
additionalextensionrequestswillcostyouextra.
Ifthetaxpayerfailstofilehis/hertaxreturnontime,he/shemaybesubjecttodefault
taxation.Insuchacase,thetaxauthoritieswillassessthetaxpayeronthebasisofa
reasonableestimate.Thistaxbasewouldusuallybesubstantiallyhigherthantheactual
taxbaseandislikelytobemoreexpensiveforthetaxpayer.Noappealisavailableif
actionisnottakenwithin20or30days(dependingonthecanton)oftheissueofthis
finalassessment.Penaltiesfornonfilingmayalsobeissued.

finalassessment.Penaltiesfornonfilingmayalsobeissued.
Calculatingyourtaxableincomeandtaxablewealth
Taxableincomeincludes:
Incomefromgainfulemploymentandselfemployment
Compensatoryincome(suchasannuitiesandpensions)
Secondaryincome(suchasseniorityallowancesandtips)
Incomefrombankaccounts/securitiesandrealestateproperty
Otherincome(eg.prizesonlotteriesandpoolsoverCHF1,000).

Expensesrelatingtotheearningofincome(eg.professionalexpenses)aredeductible
fromgrossincome.Inaddition,severalgeneraldeductions(eg.deductionsfordouble
incomeearners,forinsurancepremiums,forsocialsecurityandpensionplan
contributions,forinterestonprivatedebtuptoacertainamount,etc.)andsocial
deductions(eg.deductionformarriedcouples,forsingleparentfamilies,forchildren,for
needypersons,etc.)aregranted.
Ingeneral,totalpropertyissubjecttowealthtax.Totalpropertycomprisesallofthe
taxpayersassetsandrightsthathaveacashvalue.Theseassetsandrightsareusually
assessedatmarketvalue.
Taxablepropertyincludesinparticularrealestate,capitalassets,redeemablelifeand
annuityinsurancesandbusinessassets.Thetaxbaseforthewealthtaxisnetwealth,
thatis,grosswealthreducedbythesumofthetaxpayersdocumenteddebt,aswellas
personalallowancesandsocialdeductionswhichvaryfromcantontocanton.
HowmuchtaxdoIhavetopay?
TheextentofyourSwisstaxburdenvariesfromcantontocantonandfrommunicipality
tomunicipality.Sothetaxesthatanexpathastopaydependonwheretheyliveor
intendtolive.Thetaxscalesaregenerallyprogressive.Thereisareducedtaxscalefor
marriedcoupleslivingtogetherandsingleparentfamilies.Belowyoucanseesome
examplesofSwisstaxtablestogetanideaofliabletaxesdependingonyoursituation.
Taxesformarriedcouplewithtwochildren
Thetablebelowshowstheincometaxburdenofamarriedcouplewithtwochildrenin
theprincipaltownofeachcanton.Foragrossannual(joint)incomeofCHF150,000for
example,thelowesttaxdueisinZugwith4.15percentandthehighestinNeuchtel
with15.55percent.

Taxesforasingleperson
Thetablebelowshowstheincometaxburdenofasinglepersonintheprincipaltownof
eachcanton.ForagrossannualincomeofCHF150,000forexample,thelowesttaxis
dueinZugwith12.45percentandthehighestinNeuchtelwith24.05percent.

Wealthtaxes
Thetablebelowshowsthewealthtaxdueinthecapitaltownofeachcanton.Bywayof
anexample,theannualtaxforanetwealthofCHF500,000inthecantonofZrichis
around0.11percent.Themaximumindividualwealthtaxesleviedinallcantonsvaries
between0.13percent(CantonofNidwalden)andaround1percent(CantonofGeneva).

Swissexpattaxdeductionsyoushouldknow

Onequestionoftenaskediswhetherthereareanytaxconcessionsmadefor
expatriatesinSwitzerland.
Certainspecialtaxdeductionsdoapplytoexpatriates,definedasmembersof
managementoremployeeswithspecialistskills,sentbytheiremployertoSwitzerland
foratemporaryassignment,foramaximumperiodoffiveyears.
Thespecialtaxdeductionsforexpatriatesaredefinedincantonalandfederallawsand
guidelines.Accordingtothese,nodeductionisgrantediftheemployeeisona
permanent,timelyunlimited,contract.Furthermorenodeductionispossibleifthe
employerpaysfortheadditionalcostswithoutaddingthesepaymentstothetaxable
grosssalary.
Thespecialtreatmentendsassoonasthetemporaryassignmentischangedintoa
timelyunlimitedcontractorafterfiveyearsofresidenceinSwitzerland,whicheveris
earlier.
Expatdeductionsinclude:
ReasonablecostsforaccommodationinSwitzerland.Insomecantons,itisnecessaryfortheexpatriatetoshowthathe/shemaintainsapermanentabode(houseor
apartment)outsideSwitzerlandduringtheperiodofhis/herstayinSwitzerland.
MovingcoststoSwitzerlandandbacktothehomecountry.
TravelexpensestoandfromSwitzerlandforthetaxpayerandhis/herfamilyatthebeginningandattheendoftheemploymentinSwitzerland,respectively.
Schoolingexpensesforthetaxpayerschildrenforaforeignlanguageprivateschool,ifpublicschoolsdonotofferadequateschooling.
Insomecantons,alumpsumexpatriatededuction(oftenreferredtoasOEXPAdeduction)hastobetakeninsteadoftheaboveitemiseddeductions.Thisisusually
equivalenttoaboutCHF1,500permonth.

Alternatively,expatswhoarenotactuallyemployedinSwitzerlandmaybeliabletoclaim
alumpsumtaxassessmentbasedonestimatedlivingexpenses.Readabout
'expenditurebasedtaxation'below.
RevisedSwisstaxregulations2015
InJanuary2015,theFederalDepartmentofFinancespublishedtherevisedwordingof
theExpatriateOrdinancethatwillbecomeeffectiveon1January2016.
Thechangesinclude:
Amorerestrictivedefinitionofwhoqualifiesasanexpatriateemployee,wherebyonlyemployees(eitherinapositionofleadershiporspecialisedprofessionalexperts)
withahomecountrycontractandaletterofassignmentmayqualifyforthesedeductions(secondmentfromtheforeignemployertoSwitzerland).
Specialistsorexecutiveswithalimitedlocalcontractwillinfutureonlybeabletoqualifyasexpatriateiftheiremploymentisatransferwithinthegroupandtheforeign
employerguaranteesareemploymentafterthestayinSwitzerland.
ReasonablecostsforaccommodationinSwitzerlandwillonlybedeductibleifitcanbeproventhattheoverseasresidenceisretainedandpermanentlyavailableforthe
expatriatesuse.IfthedwellinginthehomecountryisrentedoutduringtheassignmenttoSwitzerland,nohousingdeductioncanbemadeinSwitzerland.Thesame
conditionwillapplyinordertobenefitfromthelumpsumdeductionofCHF1,500permonth.
Thedeductionofschoolcostsisstilllinkedtothemothertongueofthechildrenandwhetherthepublicschoolscanprovideadequatetutoring.Thus,ifadequate

Thedeductionofschoolcostsisstilllinkedtothemothertongueofthechildrenandwhetherthepublicschoolscanprovideadequatetutoring.Thus,ifadequate
educationinthemothertongueisofferedbypublicschools,internationalschoolfeescannotbededucted.

Expatriateswhoremaintaxresidentabroad(commuters)cannotdeductmoving
expensesandschoolfeeshowever,theyareentitledtoclaimthecostsfortheirregular
tripsbackhome.
Morestringentrulesasof2016
Inordertoimprovetaxequityandacceptancebythepopulation,theFederalCouncil
hasincreasedtheassessmentbasisandmadetheconditionsmorestringent.Themore
stringentmeasureswillbeeffectiveasof2016forboththeConfederationandthe
cantons,andinclude:
Worldwideexpensesshouldamounttoatleastseventimesthehousingcosts.
AminimumassessmentbasisofCHF400,000shouldnowadditionallyapplyfordirectfederaltax.Thecantonsmustalsoattheirdiscretionsetaminimumamountforthe
assessmentbasis.
Inthecaseofspouseswhowishtobetaxedonanexpenditurebasis,bothpartiesmustfulfilalloftheprerequisitesforexpenditurebasedtaxation.
TheexistinglegislationwillcontinuetoapplyforaperiodoffiveyearsforpersonswhoweretaxedonanexpenditurebasisatthetimeofentryintoforceoftheDFTA.

ExpenditurebasedtaxationforexpatsnotemployedinSwitzerland
Forexpatsthatarenotpursuinganoccupation,ormoresimply,whodonotworkorhold
ajobinSwitzerland,anattractivetaxationoptioncouldbeexpenditurebasedtaxation.
Expenditurebasedtaxation,alsoreferredtoaslumpsumtaxation,isasimplified
assessmentprocedureforforeignnationalswhoarelivinginSwitzerlandbutarenot
gainfullyemployedhere.
Thefederalandmostcantonaltaxlegislationsprovideanoptiontorequesttobetaxed
basedonestimatedlivingexpensesratherthanonactualincomeandnetwealth.This
lumpsumtaxationisaspecialwayofassessingincomeandwealth.However,regular
taxratesareappliedincalculatingthetaxamount.
Thebasicprerequisiteforlumpsumtaxationisthatthepersonconcerneddoesnot
pursueanoccupationinSwitzerland.Thistypeoftaxationisavailabletothosewho
makeSwitzerlandtheirtaxhomeforthefirsttimeorreturnafterhavingbeenoutsidethe
countryforatleast10years.Foreignersenjoythisrightindefinitely,whileitislimitedto
thefirstyearofresidenceforrepatriatingSwisscitizenswhoarereturningfromabroad.
TherighttoexpenditurebasedtaxationexpireswhenapersonacquiresSwiss
citizenshiportakesupgainfulemploymentinSwitzerland.

Thisoptionisavailable,thoughlessthan0.1percentoftaxpayersaretaxedonalump
sumbasisinSwitzerland.

sumbasisinSwitzerland.
Lumpsumtaxationunderpressure
Fortaxequityreasons,citizensinvariouscantonsvoted
againstexpenditurebasedtaxationinrecentpopularvotes,
andthepracticewasabolishedinthesecantons:Zurich,
Schaffhausen,AppenzellAusserrhoden,BaselCityand
BaselLand.Someothercantonsinitiativesaimedat
abolishingtheregimewererejected.Thesecantonshowever,
implementedstricterrules.Thefollowinggraphshowsthecurrentstatus.
Apopularinitiativeentitled'Stoptaxprivilegesformillionaires(abolitionoflumpsum
taxation)'wassubmittedinOctober2012,callingforlumpsumtaxationtobe
abolishedthroughoutSwitzerland.Thepopularvoteonthisinitiativewasheldon30
November2014andmostvotersfollowedtheFederalCouncil'srecommendationsand
rejectedtheinitiativewitha59.2percentnovote.
Currentexpenditurebasedtaxationmechanism
Taxiscalculatedonthebasisofthetotalannualcostoflivingexpensesbytaxpayersin
SwitzerlandandabroadforthemselvesandtheirdependentslivinginSwitzerland.For
theConfederationandmostcantonsatpresent,theexpensesinquestionmustamount
toatleastfivetimestherentalvalueofthetaxpayershomeortherentpaid.
Thelawalsoprovidesforanadditionalminimumcalculation,accordingtowhichthetax
maynotbelowerthanthetaxonspecifiedgrosselementsofincomeandwealth
accordingtotheregulartaxrateinSwitzerland.Thisincomeincludesallincomefrom
Swisssourcesaswellasincomeforwhichthetaxpayerclaimsrelieffromforeign
taxationinaccordancewithadoubletaxationagreementconcludedbySwitzerland.
Significantdifferencesexistbetweenthecantons,inparticular,regardingtakinginto
accountthetaxpayersassets,andalsowhetherwealthtaxisincludedinthetaxation.
Certaincantonshaveestablishedminimumthresholdsforeitherthetaxbaseorthetax
revenuedue.
MiscellaneoustaxesinSwitzerland
Inadditiontoindividualandcorporateincometaxandtaxonwealthorequity,youmay
beinterestedtoknowoftheothertaxesinSwitzerland.Themostimportantoftheseis
thevalueaddedtax(VAT),whichisbyfarthelowestrateanywhereinEurope.

VATorvalueaddedtax
Thevalueaddedtax(VATMehrwertsteuer/Taxesurlavaleurajoute/Tassasul

Thevalueaddedtax(VATMehrwertsteuer/Taxesurlavaleurajoute/Tassasul
valoreaggiunto)isoneoftheConfederation'sprincipalsourcesoffunding.Itisageneral
consumptiontaxleviedatarateof8percentonmostcommercialexchangesofgoods
andservices.Certainexchanges,includingthoseoffoodstuff,drugs,booksand
newspapers,aresubjecttoareducedVATof2.5percent.
Yetotherexchanges,includingthoseofmedical,educationalandculturalservices,are
taxexempt,asaregoodsdeliveredandservicesprovidedabroad.Aspecialrateof3.8
percentappliestothehotelandlodgingindustry.
AlthoughSwitzerlandisnotanEUmemberstate,itsvalueaddedtaxsystemwas
structuredinaccordancewiththesixthEUVATdirectiveasanoncumulative,multi
stagetaxthatprovidesfordeductionofinputtax.Itisdesignedasataxowedbythe
supplierofgoodsorservicesandthetaxisusuallypassedontothecustomeraspartof
theprice.
Anyentitythatgeneratesrevenuesthroughbusinessorprofessionalactivityin
Switzerlandisliablefortax,includingforeignbusinessessupplyinggoodsorcertain
servicestoSwitzerland.Thereisaregistrationobligationifthetaxablerevenueexceeds
CHF100,000peryear.Iftherevenuesareless,thentheentityisexemptfromtax
liability.However,anysuchentitymaywaiveexemptionfromtaxliability.
Federalwithholdingtax
Federalwithholdingtax(Verrechnungssteuer/imptanticip/Impostapreventiva)is
leviedatarateof35percentoncertainformsofincome,mostnotablydividend
payments,interestonbankloansandbonds,liquidationproceeds,lotteryprizesand
paymentsbylifeinsurancesandprivatepensionfunds.Thedebtorofsuchpaymentsis
liableforthepaymentofthetaxtheymustpaythecreditoronlythenetamount.
WithrespecttocreditorsresidentinSwitzerland,thewithholdingtaxisonlyameansof
securingthepaymentoftheincomeorprofittax,fromwhichthecreditormaythen
deducttheamountalreadywithheld,orrequestitsrefund.Thesameappliestoforeign
creditorstotheextentthatataxtreatyprovidesforit.Otherforeigncreditorsarenot
eligibleforarefundwithrespecttothem,thewithholdingtaxisagenuinetax.
Stampduties

Stampdutiesareagroupoffederaltaxesleviedoncertaincommercialtransactions.
Thenameisananachronismanddatesbacktothetimewhensuchtaxeswere

Thenameisananachronismanddatesbacktothetimewhensuchtaxeswere
administeredwithphysicalstamps.Stampdutiesinclude:
Issuetax(Emissionssteuer/Tassadiemissione)leviedontheissueofcertainsecuritiessuchassharesandbonds.Exceptionsaremade,interalia,forsecurities
issuedinthecourseofacommercialreorganisation,andthefirstCHF1.0moffundsraisedareineffectexemptfromtaxation.Thetaxamountsto1percentofthefunds
raisedandispayablebytheissuer.Thetradeinshellcompanies(Mantelhandel)isalsosubjecttotheissuetax.
Transfertax(Umsatzsteuer/Impostasullacifrad'affari)leviedonthetradeincertainsecuritiesbycertainqualifiedtraders(Effektenhndlermostlystockbrokersand
largeholdingcompanies).Thetaxamountsto0.15or0.3percentdependingonwhetherSwissorforeignsecuritiesaretraded.Finally,aninsurancepremiumstaxof2.5
or5percentisleviedoncertaininsurancepremiums.

Borderdutiesandmiscellaneousfederaltaxes
TheConfederationisconstitutionallyempoweredtolevytariffs,whichwereitsprincipal
sourcesoffundingupuntilWorldWarI,butarenowmoreimportantasaninstrumentof
tradepolicy.Additionalfederaltaxesoflessereconomicimportanceincludetaxesonthe
importormanufactureofspirits,beer,tobacco,automobilesandmineraloil,aswellas
ongamblingestablishments.Citizensexemptfrommilitaryservicearerequiredtopaya
taxincompensation.
Othercantonaltaxes:Capitalgainstax,inheritanceandgifttax,profitstax
Inadditiontoindividualandcorporateincometaxandtaxonwealthorequity,the
cantonsarefreetointroduceothers.
Severalcantonslevyaninheritancetax(Erbschaftssteuer/Impostadisuccessione)and
agifttax(Schenkungssteuer/Impostadidonazione),althoughthereisatrendtowards
abolishingthose.Inallcantons,thetransferofwealthbyinheritancetothespouseis
taxfree.Inmostcantons,thesameappliesfordirectoffspringandsometimesevenfor
directancestors.
Moreover,thecantonsarerequiredbyfederallawtolevyataxontheprofitfromthe
saleofrealestate(Grundstckgewinnsteuer/imptsurlesgainsimmobiliers/Imposta
sugliutiliimmobiliari).Exceptforrealestate,thereisgenerallynocapitalgainstaxon
privatecapitalsuchasstocksandbonds.
Mostcantonsalsolevyataxonthevalueofthepropertysold(Handnderungssteuer/
imptsurlesmutations/Tassadimutazione)soastodiscouragespeculationinreal
estate.Taxesarealsofrequentlyleviedontheownershipofdogsandmotorvehicles,
onlotteries,onthesaleofticketstopublicentertainments,oronovernightstaysin
certaintouristdestinations.

BeatMeyer/Expatica
BeatMeyerisaSwissCertifiedPublicAccountantandqualifiedtaxconsultant.Heis

BeatMeyerisaSwissCertifiedPublicAccountantandqualifiedtaxconsultant.Heis
ownerandCEOofBonfinaTreuhandGmbH/ExpatTaxSwitzerland(www.expattax.ch
(http://www.expattax.ch/)).
Needadvice?ContactBeatviaExpatica'sAsktheExpert
(http://www1.expatica.com/ch/ask_expert.html)freeservice(intheTaxcategory).

Pleasenote:Theinformationcontainedwithinthisarticleisforgeneralguidanceonly
andprofessionaladvicewillbeneededregardingyourdirectcircumstances.
Updatedfrom2012.

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3CommentsToThisArticle
Atifposted:
on16thAugust2014,10:49:25Reply
Goodcomprehensiveinformation,helpedmeinassessingfuturejobinSwitzerland.Likedthat.

RetoArbonposted:
on16thApril2015,23:31:50Reply
ThedownsideintheSwisstaxsystemisstillthatyouaredoublechargedwhenrunningaAG/SAasaprivateperson.Thisisagaptoclosetostayattractive,especiallywhen
puttingHongKongintocomparison.
It'snotthatIamcomparingthemdirectlybutonewouldstillstartthinkingtochangethecountryjustforthisreason.Itcangoupto5digitnumbersthefactor.
ButontheotherhandexceptofUSandfewotherentrepreneurnations,SwitzerlandcatchesupwithgreatinitiativeslikeCTI,regionaleconomicpromotionsandfresh
structureslikebusinesstitans.com.Strongentrepreneurnationshowevermustthinkonlongtermandstayattractiveforbusinessleaders,ontheprofessionalandprivate
levels.

sliperysoapboxposted:
on2ndJune2015,13:12:13Reply
Thanks,thisisreallycomprehensiveinfoforhelpingmetodecidewhethertotakeajobofferinSwitzerland.

LeaveaReply

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