Switzerland has one flag and many tax bills

Worldwide income and wealth

Swiss residents are generally taxed on worldwide income and net wealth, subject to treaty allocation and statutory exceptions. Foreign real estate can be exempt from direct Swiss taxation but still relevant for rate progression under the applicable rules.

For the surrounding context, see Swiss tax hub.

Wealth tax

Annual wealth tax is cantonal/communal. This is one of the biggest differences for newcomers from countries without a recurring net-wealth tax.

For the surrounding context, see private capital gains.

Capital gains

Private gains on movable assets are generally tax-free. Professional securities trading converts the result into taxable income, so active investors should analyse the classification criteria.

If this decision changes the viability or sequence of your move, a Swiss relocation strategy consultation can apply it to your own facts.

Tax at source

Many foreign employees without a C permit have income tax withheld directly from salary. Depending on income and other facts, a subsequent ordinary assessment can apply or be requested. Once you have significant assets, other income or deductions, do not assume the payroll rate tells you the final annual result.

For the surrounding context, see inheritance and gift tax.

Property

Owner-occupied and rental property brings imputed rental value or rental income, mortgage-interest rules, maintenance deductions, cantonal property values and possible real-estate gains tax on sale.

Companies

Company profit tax is separate from the shareholder’s personal tax. Salary, dividends, social security and wealth-tax valuation of the shares all need to be combined.

Lump-sum taxation

For eligible foreigners without Swiss gainful activity, expenditure-based taxation is a special assessment regime, not a different residence category and not a zero-tax programme.

Swiss tax planning begins with geography and ends with the household balance sheet.