Regimes: 6
Besteuerung nach dem Aufwand (Pauschalbesteuerung)
OpenFor people relocating
Tax is based on living expenses rather than income; the federal minimum base is CHF 435,000 (2026).
Details
- Who
- Non-Swiss nationals who become fully tax-liable for the first time or after at least 10 years of absence and have no gainful activity in Switzerland.
- How it works
- Income tax is replaced by tax on worldwide living expenses: at least 7 times the rent or rental value (or 3 times the board-and-lodging price), with a federal minimum base of CHF 435,000 (2026) and a control calculation on Swiss-source income. Abolished for cantonal and communal taxes in the canton of Zurich (vote of 8 Feb 2009); other cantons set their own minimum.
- How to opt in
- Application to the tax administration of the canton of residence; the canton sets its own minimum base and procedure.
- Limits and risks
- Not for Swiss citizens or anyone working in Switzerland; abolished for cantonal and municipal tax in the canton of Zurich. The tax cannot be lower than tax on Swiss-source income (control calculation); some treaties grant relief only if all income from that state is taxed.
- Legal basis
- Art. 14 DBG; Art. 6 StHG
- Checked
- 4 November 2026
Quellensteuer und nachträgliche ordentliche Veranlagung
OpenFor employees
The employer withholds the tax; below CHF 120,000 gross a year and with no other income, no return is required.
Details
- Who
- Foreign employees resident in Switzerland without a settlement (C) permit, and non-residents with Swiss employment income.
- How it works
- The employer withholds tax from each payment at the withholding-tax rates of the canton of residence. If annual gross pay is CHF 120,000 or more, a subsequent ordinary assessment (NOV) is mandatory; below that it is available on request, allowing actual deductions to be claimed.
- How to opt in
- Applies automatically. An ordinary assessment (NOV) on request — apply by 31 March of the following year (when leaving, before deregistering).
- Limits and risks
- Without NOV, actual deductions are not taken into account. Once chosen, NOV applies until withholding ends — you cannot go back.
- Legal basis
- Art. 83–89a, 99a DBG; Quellensteuerverordnung (QStV), Art. 9
- Checked
- 4 November 2026
Abzug besonderer Berufskosten von Expatriates (ExpaV)
OpenFor employees
Extra deductions for moving, Swiss housing and foreign-language private school for children; instead of actual housing and moving costs, CHF 1,500 a month.
Details
- Who
- Executives and specialists with special qualifications temporarily assigned to Switzerland by a foreign employer for no more than 5 years.
- How it works
- In addition to ordinary professional expenses: moving and travel costs, reasonable Swiss housing costs while keeping a home abroad, and children's foreign-language private school fees; housing and moving costs may instead be deducted as a flat CHF 1,500 a month.
- Duration
- For the temporary assignment — no more than 5 years.
- How to opt in
- In the tax return or, if you are taxed at source, the employer reduces gross pay by the flat amount; higher actual costs via NOV.
- Limits and risks
- The right ends if the assignment turns into permanent employment. No deduction for costs paid directly or reimbursed against receipts by the employer, nor for the home abroad, furnishings, higher Swiss prices or tax advice. The rule concerns federal tax.
- Legal basis
- Verordnung des EFD über den Abzug besonderer Berufskosten von Expatriates (ExpaV), SR 642.118.3, Art. 1–4; Art. 26 DBG
- Checked
- 4 November 2026
Vereinfachtes Abrechnungsverfahren
OpenFor employees
Income tax is paid at a single rate together with social contributions (federal part: 0.5%); this pay need not be declared.
Details
- Who
- Low-paid employees: up to CHF 22,680 a year per employer, where the employer's total payroll does not exceed CHF 60,480 (not for companies limited by shares or cooperatives).
- How it works
- Tax is withheld at a single simplified rate together with social contributions and paid via the AHV compensation fund; the income is then not included in the ordinary assessment.
- How to opt in
- The employer registers with the AHV compensation fund and settles through it for all employees.
- Limits and risks
- Only small wages: up to CHF 22,680 a year per employee and a total payroll of up to CHF 60,480; not for companies limited by shares or cooperatives. No deductions are taken into account.
- Legal basis
- Art. 37a DBG; Art. 11 Abs. 4 StHG; Bundesgesetz gegen die Schwarzarbeit (BGSA) — Kantonales Steueramt Zürich
- Checked
- 4 November 2026
Teilbesteuerung von Dividenden aus qualifizierten Beteiligungen
OpenFor investors
Federal tax on only 70% of dividends; cantonal tax on at least 50%.
Details
- Who
- Swiss residents holding at least 10% of the capital of a company or cooperative.
- How it works
- Dividends and other distributions from such a holding are 70% taxable for federal tax and at least 50% for cantonal tax (cantons may tax more). Gains on selling privately held securities are generally tax-free in Switzerland.
- How to opt in
- Automatic in the tax return: report the holding and dividends in the list of securities.
- Limits and risks
- Only for holdings of 10% or more; smaller stakes are taxed in full. Swiss dividends carry 35% Verrechnungssteuer, refunded once declared.
- Legal basis
- Art. 20 Abs. 1bis, Art. 16 Abs. 3 DBG; Art. 7 Abs. 1 StHG
- Checked
- 4 November 2026
Gesonderte Besteuerung von Kapitalleistungen aus Vorsorge
OpenFor pensioners
Federal tax at one fifth of the normal scale, separate from other income.
Details
- Who
- People receiving a lump sum from a pension fund (pillar 2) or pillar 3a, and payments on death or for lasting harm to health.
- How it works
- Such payments are taxed separately from other income: federal tax at one fifth of the normal scale, without social deductions; cantons also tax them separately under their own rules. For people living abroad, the tax is withheld at source.
- How to opt in
- Automatic: the tax is assessed for the year of payment based on the pension institution's report.
- Limits and risks
- No social deductions are granted; cantonal tax is added separately and depends on the canton. Pensions paid monthly are taxed in full together with other income.
- Legal basis
- Art. 38, Art. 96 DBG; Art. 11 Abs. 3 StHG
- Checked
- 4 November 2026
DoubleTaxation