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Taxes for expats in Switzerland

Updated on November 28, 2023

When moving to Switzerland from abroad, the tax payment is an important factor to consider. Since the Swiss tax system is complicated and difficult to see through, a professional tax consultation for expats helps to clarify the questions and at the same time save money.

Tax at source

The nature and level of taxation depends on different criteria. Expats with a B and L permit are required to only pay a tax at source, given that they earn less than CHF 120’000 per year. The tax at source is deducted directly from your wages by the employer. The tax rate varies in every canton, depending on the canton of residence. If you wish to make deductions, you have the opportunity of filling out a reduced form for a new assessment by the end of February in the following year. It is called reduced form because in comparison to the common tax return, you will have to make much less statements.

Proper taxation

If you have a B or L permit and earn more than CHF 120’000 per year, you still have to pay the tax at source, but in addition to this, once a year you will be properly taxed and therefore have to fill a common tax return. The taxes at source already paid are thereby taken into account.

Expats who are married to a Swiss or do have a C permit, will be properly taxed like every Swiss citizen once a year, irrespective of their level of salary. The filling of the tax return can be quite complicated and burdens you with a lot of paperwork. This process takes time, effort and a fine grasp about the Swiss tax system because you have to make many statements and meet several deadlines. Working with a tax expert can help you a lot in this process, since they take over the laborious communication with authorities and tax offices. Another benefit of getting professional support in this process is that there are many possibilities of claiming deductions and thus saving a lot of taxes. Furthermore, they can help you to extra optimise your taxes with the help of the 3rd pillar, which is at the same time an interesting investment for a carefree retirement.

Are you immigrating to Switzerland and would like to get professional consultation on everything important that comes with your move? Contact us now for a personal consultation.

Oliver Diggelmann

Do you have any questions? Get in touch with me.

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