DoubleTaxationUnited States – Switzerland tax treaty: residence, 183 days, rates
Convention between the United States of America and the Swiss Confederation for the avoidance of double taxation with respect to taxes on income (signed 2 October 1996)
- Signed: 1996-10-02
- In force since: 1997-12-19
- Official text
If both countries treat you as resident
- A dual-resident individual is deemed a resident of the state in which he has a permanent home available to him; if he has a permanent home in both states, of the state with which his personal and economic relations are closer (centre of vital interests). Art. 4(3)(a) of the Convention
- A U.S. citizen or green-card holder who is not a Swiss resident is a U.S. resident for treaty purposes only if he or she has a substantial presence, permanent home or habitual abode in the United States; if also a Swiss resident, status is decided under Art. 4(3). Art. 4(1)(a) U.S.–Switzerland Convention (1996)
- An individual who would be a Swiss resident but elects not to be subject to the generally imposed Swiss income taxes on all income from U.S. sources is not considered a resident of Switzerland for the purposes of the Convention. Art. 4(5) U.S.–Switzerland Convention (1996)
- If the centre of vital interests cannot be determined, or there is no permanent home in either state, the individual is a resident of the state in which he has an habitual abode. Art. 4(3)(b) of the Convention
- Habitual abode in both states or in neither: resident of the state of which he is a national; national of both or neither: the competent authorities settle the question by mutual agreement. Art. 4(3)(c), (d) of the Convention
Income: who taxes it
| Income | Treaty rule | Article |
|---|---|---|
| Salary (employment) | The country where the work is done may tax it. Exempt if all apply: no more than 183 days in any 12-month period; the employer is not resident there; the pay is not borne by its permanent establishment there. | Art. 15(2) |
| Self-employment, business, services | Country of residence; the other country only taxes profits of a permanent establishment (fixed base) there. | Art. 7, Art. 14 |
| Pension | Only the country of residence. | Art. 18(1) |
| State pension (social security) | The source country may tax; the country of residence relieves double taxation. | Art. 18(1) |
| Government service | Usually only the paying country; exception: service in the other country by its national. | Art. 19(1)-(2) |
| Government service pension | Usually only the paying country; exception: service in the other country by its national. | Art. 19(1)-(2) |
| Rent from real estate | The country where the property is located may tax; the country of residence relieves double taxation. | Art. 6(1) |
| Dividends | Source country: at most 15%; the country of residence relieves double taxation. Other rates or exemptions apply in some cases (see the article). | Art. 10(2)(b) |
| Interest (deposits, bonds, loans) | Only the country of residence. | Art. 11(1) |
| Royalties (copyright, licences) | Only the country of residence. | Art. 12(1) |
| Sale of property or shares | Real estate: the country where it is located may tax. Shares of companies deriving their value mainly (over 50%) from real estate: the same. Other property, including shares: only the country of residence. | Art. 13 |
| Other income | Only the country of residence. | Art. 21(1) |
How double taxation is relieved
- Switzerland: exemption: the income is not taxed but counts towards the rate on other income (credit for dividends, pension) Art. 23(1)
- United States: credit for the tax paid in the source country, up to the country’s own tax on that income Art. 23(2)
Data checked: 2026-11-10. A short summary for individuals; the full conditions, exceptions and protocols are in the treaty text. General information, not legal advice.