Understanding expats’ tax in Switzerland requires a precise grasp of federal, cantonal, and municipal tax rules. Your liability depends not only on your income and assets but also on your tax residency status and where in Switzerland you live. These factors become even more complex if you plan to return to Switzerland after time abroad.
In this guide, we explain how Swiss tax rules apply to expats based on residency classification, outline income and wealth tax rates, and highlight filing obligations and deduction opportunities.
What You Will Learn
- Should expats pay tax in Switzerland?
- What is the income tax rate in Switzerland?
- What additional taxes are expats in Switzerland liable for?
Do Expats Have To Pay Tax in Switzerland?
Yes, expats in Switzerland are required to pay taxes. If you’re considered a tax resident in Switzerland, you’re liable for tax on your worldwide income and wealth.
You’re considered a Swiss tax resident if you:
- Move to Switzerland permanently
- Remain in Switzerland for a minimum of 30 consecutive days while engaging in gainful employment (whether employed or self-employed)
- You remain in Switzerland for at least 90 consecutive days without engaging in any gainful activity
If none of these apply to you, you’re only liable for tax on income and assets sourced in Switzerland, including:
- Income from gainful activity performed in Switzerland
- Income from real estate located in Switzerland
- Director’s fees paid by a company based in Switzerland
- Interest from Swiss bank accounts
You may also be considered a quasi-resident in Switzerland if you reside abroad but receive more than 90% of your worldwide income from Swiss sources. This includes income from employment, rental income, interest, and dividends. In such cases, you have the option to file a Swiss tax return to claim applicable tax deductions.
Are Expats Eligible for Lump Sum Taxation in Switzerland?
You may qualify for lump sum taxation – a special status that allows taxation based on living expenses instead of income or wealth – if you:
- Are not engaged in gainful activity (employment or self-employment) in Switzerland.
- Are not a Swiss citizen, or if you are, have lived abroad for at least 10 consecutive years.
- Are moving to Switzerland as a new or returning resident.
In this case, you’re taxed on your living expenses instead of income and wealth. The taxable amount must be higher than:
- The equivalent of seven times the annual rent in Switzerland
- The minimum federal expense threshold of 429,100 CHF
- Specific cantonal rates
Some cantons (territorial districts in Switzerland), like Zurich and Basel City, abolished lump sum taxation, but you can still be taxed on a lump sum basis on a federal level.
How Is Income Taxed in Switzerland?
Taxable income in Switzerland includes funds you earn from employment, self-employment, and investments. Swiss income tax is levied at three levels:
- Federal: A uniform tax applied nationwide, assessed solely on income.
- Cantonal: Each of the 26 cantons sets its own progressive tax rates, levied on both income and net wealth.
- Municipal: Local municipalities impose additional progressive tax rates, which are also applicable to income and wealth.
As a percentage of cantonal tax, some cantons may also include church tax if you’re affiliated with one of the three recognised religious communities in Switzerland:
- Roman Catholic
- Christ Catholic
- Swiss protestant
If you’re affiliated with another religious community (like Jewish or Muslim) or aren’t religious at all, you’re exempt from church tax.
The maximum income tax rate, including federal, cantonal, and municipal taxes, is typically between 21% and 46%, depending on your canton and municipality.
What Is the Rate of Federal Income Tax in Switzerland for Expats?
The amount of federal income tax you owe as an expat in Switzerland depends on your earnings. The table below shows the federal income tax rate in Switzerland in 2024:
| Taxable Income for Single Filers (CHF) | Basic Tax (CHF) | Federal Tax Rate on Excess Over the Base Amount |
|---|---|---|
| 0–18,500 CHF | – | 0% |
| 18,500–33,200 | – | 0.77% |
| 33,200–43,500 | 137.05 | 0.88% |
| 43,500–58,000 | 225.90 | 2.64% |
| 58,000–76,100 | 603.40 | 2.97% |
| 76,100–82,000 | 1,138.00 | 5.94% |
| 82,000–108,800 | 1,482.50 | 6.6% |
| 108,800–141,500 | 3,224.90 | 8.8% |
| 141,500–184,900 | 6,058.50 | 11% |
| 184,900–793,400 | 10,788.50 | 13.2% |
| Over 793,400 | – | 11.5% |
For example, if you earn CHF 50,000 as a single individual (unmarried, without children), you’re in the 43,500–58,000 bracket, which means that you must pay CHF 225.90 in taxes. While CHF 43,500 is taxed at 0.88%, any excess over that sum, which is CHF 6,500 in this case, is taxed at 2.64%. In total, you’d owe around CHF 398 in federal income tax.
What Is the Rate of Income Tax in Zurich for Expats?
Since cantonal rates vary depending on the canton, we’ll present the progressive cantonal income tax rate for single filers in Zurich as a reference:
| Taxable Income in Zurich for Single Filers (CHF) | Basic Tax (CHF) | Cantonal Tax Rate in Zurich |
|---|---|---|
| 0–6,900 CHF | – | 0% |
| 6,900–11,800 | – | 2% |
| 11,800–16,600 | 98 | 3% |
| 16,600–24,500 | 242 | 4% |
| 24,500–34,100 | 558 | 5% |
| 34,100–45,100 | 1,038 | 6% |
| 45,100–58,000 | 1,698 | 7% |
| 58,000–75,400 | 2,601 | 8% |
| 75,400–109,000 | 3,993 | 9% |
| 109,000–142,200 | 7,017 | 10% |
| 142,200–194,900 | 10,337 | 11% |
| 194,900–263,300 | 16,134 | 12% |
| Over 263,300 | 24,342 | 13% |
For accurate cantonal tax calculations in Zurich, multiply the base tax amount by a factor of 0.98. You should also include an additional municipal tax rate, which varies between 0.72% and 1.30%. The municipal tax in the city of Zurich is 1.19%.
If you are liable for church tax, the base amount is multiplied by a church tax factor of 0.06–0.17.
Not all cantons apply the same tax system. For example, tax rates in Geneva increase in small increments as your income grows.
Geneva Income Tax Update:
In Geneva, voters approved an income tax reduction of 5% to 11%, effective for the 2025 tax year (filed in 2026). This reform aims to increase the canton’s tax competitiveness and applies to residents who meet specific income thresholds.
To ensure you are neither underpaying nor overpaying tax as an expat in Switzerland, it is prudent to seek professional guidance.
Financial advisers at Titan Wealth International provide tailored advice aligned with your cantonal and federal obligations, helping you interpret complex residency rules, apply the correct rates, and accurately report all eligible income sources.
What Other Taxes Do You Have To Pay as an Expat in Switzerland?
Besides income tax, you may be liable for the following taxes depending on your residency and asset value:
- Capital gains tax
- Value-added tax (VAT)
- Estate, inheritance, and gift tax
- Social Security tax
- Wealth tax
Capital Gains Tax
Capital gains from private sales of stocks and bonds are generally exempt from tax in Switzerland.
However, if you are deemed a professional securities trader – based on trading volume, holding period, or reliance on leverage – those gains may be reclassified as taxable income.
Income derived from immovable assets located in Switzerland—such as real estate—is subject to taxation at the cantonal level.
However, a reduced tax rate may apply if the property was held for a substantial period prior to the sale. In contrast, rental income from real estate located outside Switzerland is not taxable but may be taken into consideration when calculating your income tax rate.
Dividends and interest you earn in Switzerland or abroad are taxed at the federal, cantonal, and municipal levels if you’re a Swiss tax resident. If you’re a non-resident, only Swiss-sourced dividends and interest are taxable.
Any investment income sourced in Switzerland is subject to a 35% withholding tax, while capital gains on business assets are taxed as ordinary income.
If you own at least 10% of the company’s capital, only 70% of the dividends are taxable at the federal level. Cantonal regulations may offer similar or varying reductions, depending on the canton in question.
Estate, Inheritance, and Gift Tax
Switzerland has no estate, inheritance, or gift tax on a federal level. Instead, these taxes may be administered by individual cantons, each with its own regulations and rates.
Inheritance tax primarily depends on the total net estate and the relationship between you and your dependents. For example, your spouse and children are generally exempt from inheritance and gift tax, except in the following cantons:
- Appenzell Innerrhoden: Exempts the first CHF 300,000, with amounts exceeding this taxed at a flat rate of 1%.
- Vaud: Exempts the first CHF 1,000,000 with amounts exceeding this taxed progressively from 0.1% up to 7%
- Neuchâtel: Imposes a flat tax rate of 3% on inheritances to direct descendants
However, if an unrelated third person inherits your estate, they may be taxed up to 49.5%.
The inheritance tax rate is determined based on your last canton of residence, regardless of where your beneficiaries live.
In most cantons, gifts are subject to the same tax rules as inheritances, with the exception of Lucerne, which doesn’t levy gift tax.
Social Security Tax
All residents and individuals with gainful activity in Switzerland must contribute to the old age and disability insurance scheme. The required contributions are 10.6% of total remuneration, split evenly between employees and employers.
If you work in Switzerland, both you and your employer are obligated to contribute 1.1% to mandatory unemployment insurance.
Since Switzerland has a social security treaty with over 30 countries, you may be exempt from this social security tax in Switzerland if the foreign jurisdiction you live in is among these countries.
Value-Added Tax (VAT)
Value-added tax (VAT) in Switzerland is applied to most goods and services. The standard rate is 8.1%. Essential items, including food, non-alcoholic beverages, medicines, and books, are subject to a reduced rate of 2.6%.
Certain services, such as healthcare, education, and cultural events, are exempt from VAT.
Wealth Tax
Switzerland does not impose a federal wealth tax. Instead, all cantons levy a wealth tax on the worldwide net worth of their residents, and specific thresholds and rates vary by canton.
Wealth tax thresholds and rates vary by canton. In Geneva, the exemption threshold for single individuals is CHF 82,200, with progressive rates ranging up to 1.1%. Other cantons may impose lower maximum rates, starting around 0.13%.
Do You Have To File a Tax Return as an Expat in Switzerland?
If you’re a permanent tax resident in Switzerland, you’ll pay provisional tax in three installments—by 30 June, 30 September, and 31 December. The provisional federal tax bills are issued by 31 March of the following year.
If you pay CHF 15,000 in provisional tax and file an annual tax return for that sum, the FTA will determine if you overpaid or underpaid taxes. If needed, they’ll return the amount you overpaid or ask for the amount you underpaid.
However, if you hold a temporary (B or L) permit and earn less than CHF 120,000 annually, your taxes are typically withheld at source (Quellensteuer) and you may not be required to file an annual tax return—unless your income exceeds this threshold or you wish to claim deductions.
Non-residents for tax purposes in Switzerland are only subject to withholding tax and don’t have to file a tax return.
However, if a non-resident owns property in Switzerland, they are liable for taxes related to that property, including income tax on rental profits, wealth tax on the property’s value, and property tax, depending on the canton. They are also typically required to file an annual Swiss tax return.
How Can You Reduce Tax Liability as a Swiss Expat Living Abroad?
If the foreign country you currently live in has a double tax treaty with Switzerland, you may be able to avoid being taxed twice on the same income. These treaties define which country has taxing rights over specific types of income, mitigating the risk of double taxation.
If a tax treaty applies, Switzerland applies the exemption with progression method—it exempts qualified foreign income from taxation but takes it into account when defining the tax rate on your Swiss income. If there’s no tax treaty in place, foreign-sourced income is fully taxable, regardless of the foreign tax that is already paid on it.
Dividends, interest, and royalties aren’t exempt from taxation. Instead, the foreign tax you paid is directly credited against your Swiss tax, but the credit can’t be higher than the Swiss tax rate on the same income.
To ensure you’re claiming all tax deductions available, consider consulting a financial adviser.
Book Your Swiss Expat Tax Planning Call
Managing cross-border tax obligations in Switzerland requires local insight and strategic planning. In a personalised consultation with Titan Wealth International, you will:
- Clarify your tax residency status and how it affects income, wealth, and inheritance tax.
- Identify deductions and exemptions available under cantonal and federal rules.
- Receive expert guidance on repatriation planning, lump sum taxation, and compliance.
Key Takeaway
Successfully managing your tax obligations as an expat in Switzerland requires a detailed understanding of local, cantonal, and federal tax rules – especially if you intend to return permanently.
This guide has explained how tax residency status – resident, non-resident, or quasi-resident – affects your tax liability in Switzerland. It has also outlined key components of the Swiss income tax system, including lump sum taxation, withholding rules, and other common taxes faced by expats.
If you are unsure which exemptions or deductions apply to your situation, speaking with a qualified adviser is essential.
At Titan Wealth International, our financial advisers can help you build a compliant, efficient cross-border tax strategy tailored to your long-term goals.
