Taxes in Switzerland for foreigners in 2026

What taxes are paid in Switzerland in 2026

A Swiss resident pays income tax to three layers of government at once: the Confederation, the canton (one of 26 member states) and the municipality. There is only one tax return, and the federal share is rarely the big one: most of the bill goes to the canton and the municipality.

Federal taxes and social contributions are the same nationwide; everything else depends on the address. That is why the table shows ranges rather than a single figure.

The tax year is the calendar year. Federal rates are uniform, while cantons and municipalities set their own multipliers each year (the percentage applied to the basic tax from the cantonal scale). That is why neighbouring towns in the same canton can tax the same income differently.

What changed in 2026

Federal brackets and deductions were indexed for inflation by just 0.1%, so the amounts barely moved. From 2026, pillar 3a (a voluntary pension account with a tax deduction) allows catch-up contributions for missed years, starting with 2025.

Bigger reforms have been approved but take effect later. On 8 March 2026, about 54% of voters backed individual taxation of married couples; cantons must switch by 1 January 2032 at the latest. On 29 November 2026 the country votes on raising VAT to 8.5% from 2028 and on a popular initiative for equal federal taxation of married couples.

Compare taxes in 146 countries: relocation taxes 2026

Swiss taxes by canton: where tax is lowest

The lowest top income tax rate in Switzerland in 2026 is 21.9% in the canton of Zug; the highest is 43.24% in Geneva. The figures are calculated from the 2026 cantonal tax tariffs and assume a single taxpayer with no church tax living in the cantonal capital, with the 11.5% federal tax included.

The gap is close to two-to-one, and it is not only a millionaire's problem. The canton sets the scale, the municipality adds its own multiplier, so tax differs by tens of percent even within one canton.

Source for the rates: the 2026 cantonal and federal tax tariffs. The national average top rate is 33.04% and the average corporate rate 14.43%. Lump-sum taxation has also been abolished in Schaffhausen and Appenzell Ausserrhoden.

How to read this table

The top rate is the tax on the last franc of a very high income, not the average rate. On a salary of $130,000-190,000 (100,000-150,000 francs) the real burden is much lower in every canton, but the ranking holds: Central Switzerland (Zug, Schwyz, Nidwalden, Obwalden) is cheaper than the French-speaking west and Bern.

Low tax is paid for in housing. Rents and property prices in Zug and Schwyz are among the highest in the country, and on an average salary the tax saving can disappear into the rent. The number that matters is the annual total: tax plus housing plus health insurance.

Moving between cantons

The whole year is taxed by the canton where the taxpayer is resident on 31 December. A December move from Geneva to Zug formally changes the tax for the entire year, but tax offices check where life actually happens: family, children's school, main home. Registering without really moving is a direct route to a reassessment.

In 2026 Ticino and Aargau made the biggest cuts for individuals, the canton of Zurich lowered its multiplier from 98% to 95%, while Jura and Neuchâtel raised tax slightly.

Switzerland vs Germany, Italy or the UAE: where are taxes lower

At the top rate, Zug taxes income at less than half the German rate: 21.9% against 45%. Even Geneva, the most expensive canton at 43.24%, comes in below Austria and Germany, and on corporate tax every Swiss canton beats its European Union neighbours.

Top income and corporate rates follow each country's 2026 tax legislation. Cyprus raised its corporate rate from 12.5% to 15% in 2026, and from 1 January 2026 Italy raised its flat tax for new residents from $230,000 (€200,000) to $340,000 (€300,000).

What else to compare

Uncapped contributions. The Swiss state pension contribution applies to the entire salary with no ceiling. German pension contributions stop at a cap, so on a salary of several hundred thousand the Swiss system claws back part of the tax advantage.

Wealth tax. Swiss cantons tax net assets every year, including bank accounts, securities and crypto. Germany and Austria currently levy no wealth tax on individuals. For someone with capital but modest income, this can outweigh the low income tax rate.

Capital gains. On the other hand, a private investor pays nothing on gains from shares, holdings or crypto in Switzerland, while Germany, Austria and Italy take 25-27.5% of the profit.

More on the neighbours: taxes in Germany, Italy residence by investment, taxes in the United Arab Emirates and European tax comparison.

When does a foreigner become a Swiss tax resident

Swiss tax residency starts long before the familiar 183 days: 30 days with work or 90 days without it are enough. Article 3 of the Federal Act on Direct Federal Tax sets out two grounds for unlimited tax liability, and either one is sufficient.

A resident pays tax on worldwide income and wealth. The exception is foreign real estate and foreign permanent establishments: Switzerland does not tax them but takes them into account when setting the rate (exemption with progression). A non-resident pays only on Swiss-source items.

The year of arrival and departure

Tax liability starts on the date of arrival. Regular income for a part-year is annualised to set the rate, so an autumn move does not automatically bring a low rate. On departure, deregister with the municipality and file a return for the part-year.

Resident in two countries at once

If tax residency continues in another country as well, the double tax treaty settles the conflict through a chain of tests: permanent home, centre of vital interests, habitual abode, nationality. How the 183-day rule works in other countries is explained in our article on tax residency and the 183-day rule.

A residence permit does not create tax residency by itself, but moving on a Swiss residence permit almost always means Swiss tax residency from day one.

Switzerland tax residency rules: how many days make you resident

Switzerland makes you resident faster than almost anywhere in Europe: 30 days with work or 90 days without it are enough. Short trips do not break the count. That is how Article 3 of the Federal Direct Tax Act works.

Moving with the intention of staying long term makes you resident from day one, with no day count. A resident pays federal, cantonal and municipal tax on worldwide income, a non-resident only on Swiss income. The top rate depends on the canton: from 21.9% in Zug to 43.2% in Geneva.

Mistakes cost more: a long winter at a ski resort quietly turns into tax residence, and the canton taxes your worldwide income. Murblz support removes these risks: we count the days, compare cantons, handle the move and confirm the residence. We guarantee professional work and a transparent process, and in most cases a result on the first filing.

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What is the Swiss income tax rate for individuals

For an average income, Swiss federal income tax is almost symbolic: on $130,000 (100,000 francs) of taxable income a single filer pays the Confederation $3,300 (2,684 francs), or 2.7%. The canton and municipality add the bulk, and they are what makes Switzerland either cheap or expensive.

All income goes into one return: salary, business profit, pensions, dividends, interest, rent. Expenses and deductions come off the total, and each layer applies its own progressive scale to the rest.

The 2026 federal scale

For single filers tax starts at 0.77% on income above $19,000 (15,200 francs), with a top marginal rate of 13.2%. Once taxable income exceeds $960,000 (793,900 francs), the entire income is taxed at a flat 11.5%. Married couples and parents living with children get a gentler tariff: no tax up to $36,000 (29,700 francs), a flat 11.5% from $1.2 million (941,300 francs), and the final tax bill is reduced by a further $320 (263 francs) per child.

Amounts follow the official 2026 tariff of the Federal Tax Administration, before the child reduction.

Cantons and municipalities

Each canton adopts a basic tax scale, and then the canton and the municipality multiply the result by their own rates. In the canton of Zurich the basic rate goes up to 13%, the cantonal multiplier for 2026 is 95%, the City of Zurich applies 119%, and other municipalities in the canton sit noticeably lower or higher. In Geneva the canton sets a progressive scale, and the municipal surcharge is 25% to 51% of the cantonal tax.

Members of the recognised churches (Catholic, Reformed) also pay church tax. Those who have left or never belonged do not pay it.

Main deductions in 2026

When both spouses work, 50% of the lower income is deductible at federal level, at least $11,000 (8,600 francs) and at most $17,000 (14,100 francs). Employee contributions to the state pension, unemployment insurance and the pension fund are fully deductible.

Voluntary buy-ins to the second pillar (the mandatory occupational pension fund) also reduce taxable income. But if the pension capital is withdrawn as a lump sum within three years of the buy-in, the deduction can be reversed. Interest on loans is deductible up to investment income plus $61,000 (50,000 francs), medical costs above 5% of income, and donations to recognised charities up to 20% of income.

Pension capital from the second pillar and pillar 3a is taxed separately from other income, at one fifth of the ordinary tariff at federal level.

How much tax comes off a Swiss salary and what is left

On a $150,000 (120,000 francs) salary in the City of Zurich, take-home pay is about $110,000 (90,000 francs, see the worked example below): taxes take roughly 13%, social contributions almost another 12%. For an average salary, contributions weigh more than federal tax, so the two have to be counted together.

The second pillar, the occupational pension, is mandatory once annual salary from one employer exceeds $28,000 (22,680 francs). The minimum insured salary is pay up to $110,000 (90,720 francs) minus a coordination deduction of $32,000 (26,460 francs). Savings credits rise with age: 7% at 25-34, 10% at 35-44, 15% at 45-54 and 18% from 55. The Federal Social Insurance Office has confirmed these thresholds for 2026.

Health insurance is compulsory but not deducted from salary: every adult pays an insurer directly, and it is one of the largest items in a household budget.

Worked example: $150,000 (120,000 francs) in the City of Zurich

Single employee aged 35, no children, no church tax, wealth ignored. Pension fund and accident insurance contributions are assumed, since every employer's plan differs. Taxes use 2026 tariffs with flat-rate deductions.

Taxes take about 13.3% of gross, and about 24.9% together with contributions. Paying the maximum $8,800 (7,258 francs) into pillar 3a would cut the tax in this example by roughly $2,300 (1,900 francs). In Zug or Schwyz the tax on the same salary is noticeably lower; in Geneva and Lausanne it is higher.

On top, the employer pays its own 5.3% and 1.1%, at least as much as the employee into the pension fund, family allowance contributions and occupational accident insurance. The full cost of such an employee to the company exceeds $160,000 (132,000 francs).

The figure for a specific municipality can be checked with the Federal Tax Administration's official tax calculator.

Self-employed and non-employed

The self-employed pay the full social security contribution themselves: 10% of income in 2026 from $73,000 (60,500 francs). Below that a sliding scale applies, with a lower limit of $13,000 (10,100 francs) and a minimum contribution of $640 (530 francs) a year, plus the compensation fund's administrative fee. There is no unemployment insurance for the self-employed and the second pillar is voluntary, but up to 20% of income, capped at $44,000 (36,288 francs), can go into pillar 3a.

People without gainful activity below retirement age, such as the spouse of a specialist or someone living on investments, also pay social security contributions: from $640 (530 francs) to $32,000 (26,500 francs) a year depending on wealth and pension income.

What is Swiss lump-sum taxation and who qualifies

About 3,500 wealthy foreigners in Switzerland are taxed not on their income but on their living expenses, and they do not have to disclose their worldwide income and assets to the tax office. This is lump-sum taxation, also called expenditure-based taxation. The legal basis is Article 14 of the Federal Act on Direct Federal Tax.

The number of lump-sum taxpayers is falling. According to figures from the Conference of Cantonal Finance Directors, there were 5,634 in 2012, 4,557 in 2018 and 3,478 in 2022. Revenue from them has nevertheless grown, because the minimum base was raised. Swiss voters refused to abolish the regime nationwide in a referendum on 30 November 2014, with 59.2% voting no.

Who can use lump-sum taxation

How the base is set and what it costs

The base is the worldwide annual living expenses of the taxpayer and their family. It cannot be lower than the highest of: $530,000 (435,000 francs) at federal level in 2026; seven times the annual rent, or the rental value of an owned home in Switzerland. The ordinary cantonal and municipal tariff is applied to the base, and the result is confirmed in an advance tax ruling from the canton.

The annual tax under this regime can come in below $130,000 (100,000 francs), though the outcome depends heavily on the canton, the home and the taxpayer's profile. For comparison, a new resident in Italy has paid a flat $340,000 (€300,000) a year on foreign income alone since 2026.

The residence permit is the real filter

The tax regime does not give the right to live in Switzerland. Citizens of the European Union and the European Free Trade Association only need to show sufficient means and health insurance. Citizens of other countries come through one of two routes, depending on age.

Over 55, a permit is granted with personal ties to Switzerland, no gainful activity in Switzerland or abroad, sufficient means and insurance. Under 55, a permit is granted when the canton considers the move important to its public finances. In practice this requires a total tax bill of at least $250,000 (200,000 francs) a year, depending on the canton. Permit details are on our page about Swiss residence by investment.

Lump-sum taxation pays off when worldwide income is many times higher than living costs. If income is close to the $530,000 (435,000 francs) base, ordinary taxation in an inexpensive canton can be cheaper, and both options should be calculated.

What is the Swiss VAT rate in 2026 and how tourists get it back

Swiss VAT in 2026 is 8.1%, one of the lowest rates in Europe: Germany charges 19%, Austria 20% and Italy 22%. The rate has applied since 1 January 2024, and Liechtenstein is part of the Swiss VAT area with the same rates.

VAT may rise from 2028

On 19 June 2026 Parliament approved raising the standard rate from 8.1% to 8.5% and the accommodation rate from 3.8% to 4.0% to fund the 13th monthly state pension payment. The reduced 2.6% rate stays the same. Because it is a constitutional amendment, voters and cantons decide in a mandatory referendum on 29 November 2026. If approved, the new rates are planned for 2028.

Who must register

Any company or sole trader becomes liable once worldwide turnover from taxable supplies reaches $130,000 (100,000 francs) a year. A foreign company with that turnover worldwide therefore owes VAT from the first franc of supplies into Switzerland. Foreign mail-order sellers register if their low-value consignments to Switzerland reach $130,000 (100,000 francs) a year, and since 2025 electronic platforms are treated as the supplier of goods sold through them and pay the VAT themselves. Voluntary registration below the threshold is possible.

An unregistered business that buys services from foreign suppliers worth more than $13,000 (10,000 francs) a year must self-account for VAT under the reverse charge.

Returns and simplifications

Returns and payments are quarterly, within 60 days of the quarter end. Since 2025 businesses with turnover up to $6.1 million (5,005,000 francs) can switch to an annual return with instalments. Small businesses can use net tax rates (a fixed percentage of turnover instead of reclaiming input VAT), which simplifies bookkeeping.

VAT refund for tourists (tax free)

A buyer without a domicile in Switzerland can avoid Swiss VAT on goods taken out of the country. The Federal Tax Administration's conditions:

At 8.1% the refund is small, and operators keep a commission. Customs only stamps documents at staffed crossings during opening hours, so allow time at the airport.

What corporate tax do Swiss companies pay

A company in Lucerne pays 11.66% on its profit in 2026; in Bern it pays 20.54%. The federal share is the same for everyone at 8.5%, but it is calculated on profit after tax, because taxes themselves are deductible. On pre-tax profit that is about 7.8%, and the canton and municipality add the rest.

Dividends from subsidiaries are almost tax-free thanks to participation relief, available for stakes of at least 10% or worth at least $1.3 million (1 million francs). Losses can currently be carried forward for 7 years; there is no carry-back.

The carry-forward period is being extended. In December 2025 Parliament lengthened it to 10 years for losses from 2020 onwards, and the referendum deadline passed on 17 April 2026 without a challenge. The government will set the start date, no later than 1 January 2028.

Incentives after the 2020 tax reform

Since the 2020 reform (the Federal Act on Tax Reform and State Pension Financing), cantons offer a patent box with relief of up to 90% of patent income, an R&D super-deduction of up to 150% of costs and tax holidays of up to 10 years for new companies. Large multinationals with turnover of $840 million (€750 million) or more have paid the Swiss domestic minimum top-up tax up to 15% since 2024, and since 2025 the income inclusion rule has applied, under which a parent company pays top-up tax for low-taxed subsidiaries.

The global minimum is reshaping competition. Geneva has already raised its profit tax, Vaud and Schaffhausen introduced progressive rates, Basel-Stadt raised the rate on profits above $61 million (50 million francs) from 13.04% to 14.53% in 2026, and Graubünden, Zug and Lucerne are preparing tax credits and subsidies instead of low rates.

How the owner takes money out

Dividends from a Swiss company bear 35% withholding tax. A Swiss resident who declares the dividends gets the 35% back or credited. An owner of 10% or more is taxed on dividends only partially (70% at federal level, at least 50% in the cantons), while salary is taxed in full plus social security contributions.

So the salary-dividend split in an owner-managed company is worth calculating in advance. The tax office can recharacterise an obviously low salary paired with large dividends, and the state pension fund can claim extra contributions. Repayments of capital contribution reserves are free of withholding tax.

How to set up a company and which documents are needed: company registration in Switzerland.

Swiss taxes for sole traders, the self-employed and tech workers

Switzerland has no simplified tax regime, no flat-fee patent and no special tax for digital nomads. A business owner pays income tax on the same scale as an employee, plus up to 10% of income in social security contributions.

Sole traders

A sole trader pays income tax on business profit at ordinary rates together with other income. With turnover of $130,000 (100,000 francs) or more, an entry in the commercial register and VAT registration are required.

A limited liability company or a joint-stock company is often cheaper at higher incomes: profit is taxed at 11.66-20.54%, and the owner decides how much to take as salary and how much as dividends. The downside is the cost of bookkeeping, an audit in some cases and minimum share capital.

For citizens of countries outside the European Union and the European Free Trade Association, a permit for self-employment in Switzerland is hard to obtain. The immigration question matters more than the tax one and is the place to start.

Tech workers, start-ups and stock options

There is no special regime for tech workers. Employee stock options are taxed on exercise, and restricted stock units, shares the employer transfers to an employee on a schedule, on vesting, when ownership passes. After a mid-vesting move, the portion matching the time worked in Switzerland is taxed.

Working remotely from Switzerland for a foreign employer does not exempt the salary: a resident pays tax on it, and contributions are settled separately under social security agreements.

Expatriate specialists

Executives and specialists seconded to Switzerland for up to 5 years can deduct relocation costs, housing while keeping a home in their country of origin, private school fees for children and trips home. These benefits do not apply to an ordinary local contract.

Wealth, property, inheritance and crypto taxes in Switzerland

Wealth tax is Switzerland's main surprise for people with capital: all 26 cantons levy it every year, at 0.1% to 1% of net assets. There is no federal wealth tax, but the cantonal one covers worldwide assets minus debts, including bank accounts, securities, crypto, cars and real estate. Foreign real estate and household effects are excluded.

Homes and property transactions

Voters approved abolishing imputed rent on 28 September 2025, and on 1 April 2026 the Federal Council set the start date at 1 January 2029. Renovation costs will then stop being deductible and the mortgage interest deduction will be limited. The old rules apply until 2029.

Foreigners living abroad face restrictions on buying Swiss homes under the Lex Koller (the federal act on the acquisition of real estate by persons abroad). More in our Swiss real estate section.

Inheritance and gifts

There is no federal tax; inheritance and gift taxes are levied by the cantons, except Schwyz and Obwalden. Spouses are exempt in every canton and direct descendants in most. Rates rise with distance of kinship. Voters rejected an initiative for a 50% federal tax on inheritances and gifts above $61 million (50 million francs) on 30 November 2025, with 78.3% voting no.

Capital gains and crypto

Gains on privately held securities, holdings and crypto are tax-free, and losses are not deductible. Professional traders are the exception. The Federal Tax Administration treats a portfolio owner as a private investor if all of the following hold: assets are held for at least 6 months, annual turnover is no more than five times the portfolio value, gains are less than half of income, and no borrowing or derivatives are used for speculation. Otherwise profits can be treated as business income, with tax and social security contributions.

Crypto is subject to wealth tax at its value on 31 December, and the Federal Tax Administration publishes year-end rates. Income from staking, lending and mining is taxed as income. More on relocating with crypto in our article crypto and taxes when relocating.

Cars, dogs and other local taxes

Motor vehicle tax is set by the cantons, and motorways require an annual vignette costing $50 (40 francs). Importing a car triggers the 4% automobile tax (applied to electric cars too since 2024), customs duty and 8.1% VAT. Dog owners almost everywhere pay an annual dog tax, with the amount set by the canton or municipality.

How foreigners and non-residents are taxed: taxes at source

A foreigner on a B permit (the standard residence permit) earning up to $150,000 (120,000 francs) a year files no tax return at all: the employer withholds the tax from every payslip. This is tax at source on salary, not to be confused with the 35% federal withholding tax on dividends and interest.

Salaries of foreigners

Tax at source applies to foreigners holding B (residence), L (short-term) and other permits, except C (settlement), unless they are married to a Swiss citizen or a C permit holder. The deduction covers all levels of tax at once.

With a salary of $150,000 (120,000 francs) or more, an ordinary tax return is mandatory after the year ends. Below that threshold, an ordinary assessment can be requested by 31 March of the following year, but the choice then applies to all future years, so it is worth calculating first. Non-residents with at least 90% of worldwide household income taxed in Switzerland can request ordinary assessment as quasi-residents.

Income of non-residents

Bank deposit interest of up to $250 (200 francs) a year is exempt from withholding tax. Swiss residents recover the 35% in full if they declare the income properly, while for non-residents part of the tax remains final.

Double taxation and Switzerland's tax treaties

Switzerland has more than 100 double tax treaties. It exempts foreign income with progression, and grants a credit for foreign tax only on dividends, interest, royalties and certain other income, up to the treaty rate. Tax paid in a non-treaty country can only be deducted from the base.

Residual Swiss withholding tax on payments to residents of other countries:

Treaties cover all European Union countries, the United Kingdom, the United States, Canada, the United Arab Emirates, Singapore, the largest economies of Asia and Latin America, and all former Soviet republics. A Swiss certificate of tax residence is issued by the cantonal tax office.

Some treaty partners apply their treaty only in part: Russia has suspended the key articles since 8 August 2023 and withholds tax at its domestic rates, while Switzerland continues to apply the treaty on its side.

Social security agreements are separate: besides those with the European Union and the European Free Trade Association, Switzerland has bilateral agreements with about 20 other countries. They determine whether contribution periods count and, in some cases, whether pension contributions can be refunded on departure.

How to legally pay less tax in Switzerland in 2026

In Switzerland the tax on the same salary can differ almost twofold depending on your address, and the law gives residents, entrepreneurs and wealthy newcomers several legal ways to pay less. Here are the six main ones in 2026.

1. Choosing the canton and the municipality. The top income tax rate ranges from 21.9% in Zug and 23.3% in Schwyz to 43.24% in Geneva, and corporate tax from 11.66% in Lucerne to 20.54% in Bern. The whole year is taxed by the canton where you live on 31 December, provided your real life is there: your family, your children's school, your main home.
2. The third pillar with a tax deduction. Contributions to a voluntary pension account are deducted from income: up to $8,800 (7,258 francs) a year if you have a pension fund, and for the self-employed without a fund 20% of income, up to $44,000 (36,288 francs). From 2026 you can make up contributions for missed years, starting from 2025.
3. Tax-free capital gains. A private investor pays no tax on selling shares, stakes and crypto. Private investor status is kept if assets are held for at least 6 months, annual turnover is no more than five times the portfolio value, gains are less than half of income, and loans and derivatives are not used for speculation.
4. Your own company and dividends. Company profit is taxed at 11.66-20.54%, and an owner of at least 10% of the capital pays tax on only part of the dividends: 70% at federal level and at least 50% in the cantons. Cantons offer a patent box exempting up to 90% of income from patents, a deduction of up to 150% of research spending and tax holidays of up to 10 years for new companies.
5. The lump-sum tax for wealthy newcomers. A foreigner who moves to Switzerland for the first time or after a 10-year break and does not work there pays tax on living expenses rather than on worldwide income. The federal base in 2026 is from $530,000 (435,000 francs) and at least seven times the annual rent of the home; for citizens of the European Union and the European Free Trade Association the annual tax in a number of cantons comes to less than $130,000 (100,000 francs), and for citizens of other countries cantons set a tax from $250,000 (200,000 francs).
6. Deductions for employees and families. Professional expenses of 3% of net salary, up to $4,900 (4,000 francs), are deducted from income, along with commuting of up to $4,000 (3,300 francs) at federal level, $8,200 (6,800 francs) for each child and up to $31,000 (25,800 francs) for childcare for a child under 14. Specialists posted for up to 5 years deduct the cost of moving the family at the start and the end of the assignment, housing in Switzerland if they kept their home abroad, and a private school if state schools do not teach in the child's language.

Which option pays off depends on your income, your capital, your family and whether you work in Switzerland. Our manager calculates your tax burden, compares cantons and chooses a legal structure, and Murblz support sets it up: the move, the company or the lump-sum tax, and the tax returns.

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When to file a Swiss tax return and what the penalties are

In most cantons the 2026 tax return is due by 31 March 2027, but an extension into the autumn is granted on a simple request. Two deadlines are strict: applying for ordinary assessment instead of tax at source, and correcting the withholding, both by 31 March with no extension.

Penalties

Failing to file or breaching procedural duties carries a fine of up to $1,300 (1,000 francs), or up to $13,000 (10,000 francs) in serious or repeat cases. For tax evasion the fine equals the tax evaded, and with mitigating or aggravating circumstances ranges from a third to three times that amount, on top of back tax with interest.

Once in a lifetime, undeclared income and assets can be disclosed voluntarily without a penalty, paying back taxes with interest. Returns are cross-checked against data from the automatic exchange of financial account information between countries (the Common Reporting Standard), so the tax office sees foreign accounts even without a declaration.

What to plan for before a tax move to Switzerland

Switzerland is low on rates, and the full annual budget decides the result: rent, health insurance and wealth tax sit alongside the tax bill. Before moving, work out the whole budget for a specific municipality rather than a rate from a reference table.

What to plan for

The address decides the rate. Canton and municipality shift the burden more than any planning. At high incomes the gap between Zug and Geneva runs to tens of thousands of francs a year, and the tax office checks that the family really lives at the new address.

Worldwide income and wealth. Residents pay tax on worldwide income and wealth. For newcomers who do not work in Switzerland, lump-sum taxation replaces this with a tax based on living expenses.

Wealth tax every year. For owners of capital with modest income it is often the biggest tax, so it goes into the budget from the first year. Paid-up taxes are also a condition for Swiss naturalisation.

Mandatory costs outside the tax bill. Health insurance, social security contributions of a non-working spouse and church tax are not part of the tax calculation, and they go into the family budget alongside it.

Banks. A personal account in Switzerland and the transfer of assets are planned well ahead.

Who Switzerland suits best

High earners moving to a low-tax canton. In Zug the top combined rate is 21.9%, less than half the German 45%.

Private investors. Gains on shares, holdings and crypto are tax-free for a private investor, while Germany, Austria and Italy take 25-27.5%.

Wealthy newcomers who do not work in Switzerland. Lump-sum taxation, with a federal base from $530,000 (435,000 francs), pays off when worldwide income is many times higher than living costs.

Company owners. Corporate tax runs from 11.66% to 20.54%, below every European Union neighbour.

Families passing on wealth. Spouses pay no inheritance tax in any canton, and direct descendants are exempt in most.

Families looking for zero income tax compare Switzerland with the United Arab Emirates, and we run both sets of numbers.

Related pages: all Swiss programmes and taxes by country.

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