🇨🇭 Taxes · Switzerland
Taxes in Switzerland
A guide to taxes for individuals and businesses in Switzerland: rates, residency rules and social contributions.
Switzerland is known for a stable but not exactly simple tax system: rates depend on the canton and the municipality, and tax residency can be acquired in several ways.
Who counts as a tax resident
Under Swiss domestic tax law an individual is treated as a tax resident if any of the following applies:
- the person intends to live in Switzerland permanently, has their center of vital interests here and is registered with the municipal authorities;
- the person stays in Switzerland with the intention of carrying out paid activity for at least 30 days without interruption;
- the person stays in Switzerland without the intention of carrying out paid activity for at least 90 days without interruption.
Tax rates
Tax residents pay tax on their worldwide income, non-residents only on income from Swiss sources. The personal income tax rate runs from 0 to 48%.
Corporate income tax
The federal corporate income tax rate is 8.5%. With the cantonal and municipal levels added, the overall rate varies from 11.9% to 21.6% depending on where the company is registered.
VAT and social contributions
The VAT rate is 7.7%. Employees pay a pension contribution of 5.3% and an unemployment insurance contribution of 1.1%.
The exact tax burden depends on the canton and on your situation. On a free consultation we go through your case.
Features of the Swiss tax system
Residency on several grounds
You can become a tax resident through permanent residence, through paid activity of 30 days or more, or simply by staying in the country for 90 days or more.
Moderate corporate income tax
The federal corporate income tax rate is 8.5%, and with the cantons and municipalities added the overall rate can be below 12%.
Low VAT
The VAT rate in Switzerland is 7.7%, one of the lowest in Europe.
FAQ
Who counts as a tax resident of Switzerland?
What is the personal income tax rate in Switzerland?
How much is corporate income tax?
What is the VAT rate in Switzerland?
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