Background

Taxation in Switzerland

Personal taxes in Switzerland are relatively low in comparison with other countries, and are the lowest in Europe. It is a progressive tax and is levied on a federal, cantonal, and communal level. While Swiss federal tax applies throughout Switzerland, each of the 26 Cantons has its own tax system and sets its own tax rates. The top federal tax rate is 11.5%, and the top rate between the cantons can vary significantly, however, the top total income tax at all levels rarely exceeds 40%, and that is for the top incomes in the most expensive cantons (such as Geneva).

For tax purposes, a person is considered a resident of Switzerland if he or she is a resident for a minimum of 30 days in Switzerland and is gainfully employed, or is a resident for a minimum of 90 days without being gainfully employed. The community you are a resident in will send you the forms, which you then have to fill out and return by the date they specify.

The Federal Department of Finance and the Swiss Federal Tax Administration are responsible for tax issues. You can find a link to your cantonal tax office on the Swiss Portal website.