Switzerland

Social security contributions

If an individual is subject to the Swiss social security, the following social security contributions are payable (as of 1 January 2024):

All social security taxes (except for the medical insurance) are the employer’s responsibility. The employer must withhold and remit the total deduction and deducts the employee’s share from his gross pay. If the individual is self-employed, they basically have to cover the employer’s and the employee’s share, however different contribution rates may be applicable.

Consumption taxes

Value-added tax (VAT)

As a matter of principle, proceeds of sales made and services provided in Switzerland are subject to VAT at the standard rate of 7.7% (will increase to 8.1% as of 1 January 2024). Goods for basic needs are subject to VAT at the reduced rate of 2.5% (will increase to 2.6% as of 1 January 2024). Furthermore, services in connection with the provision of lodging are subject to VAT at the special rate of 3.7% (will increase to 3.8% as of 1 January 2024). A registered taxpayer generally is entitled to offset the amount of VAT charged by suppliers or paid on imports against the VAT payable.

Net wealth tax 

All cantons levy a net wealth tax based on the balance of the worldwide gross assets minus debts. Some cantons may allow additional social deductions. Reportable assets are as follows:

• Bank account balances, bonds, shares, funds and other equities.
• Life insurances with a surrender value.
• Cars, boats, airplanes, etc.
• Properties/real estate.
• Other valuable assets, e.g. paintings, art collections, jewellery, etc. 

The fair market value of the assets is subject to taxation; consequently, some assets are subject to depreciation, which is considered for wealth tax purposes but cannot be claimed as a deduction for income tax purposes. Leased assets are not considered for wealth taxation. Movable assets are deemed to be located in Switzerland and therefore subject to wealth taxation in Switzerland. Properties abroad are only considered for tax rate determining purposes but are exempted from actual taxation in Switzerland. 

Worldwide debts (e.g. mortgages or other loans) are deductible with no applicable cap. If assets are located abroad, the total debts are subject to an international allocation in accordance with the allocation of the total gross assets. 

Household goods are not subject to wealth taxation.

Zurich

I - Single taxpayers (wealth taxes) 

II - Married taxpayers and single taxpayers with minor children (wealth taxes)

For Zurich cantonal taxes, the above rates can be applied directly. For the additional municipal taxes, the above rate has to be multiplied by the respective municipal tax factor, which varies between 0.72 and 1.30 (City of Zurich: 1.19). For church tax the basic tax above is multiplied by the church tax factor, which is between 0.06 and 0.16.

Geneva

On 18 June 2023, the Geneva citizens voted in favour of the modification of the law on real estate fiscal valuation, which will not only impact owners of real estate properties in the canton, but all Geneva domiciled persons liable to wealth tax. The modifications to the law introduce new principles for the fiscal valuation of some real estate properties in the canton, generally leading to an increase in wealth tax for real estate owners. In parallel and starting from 2024, the special property tax rate for principal residences will decrease from 0.1% to 0.02%, and the global wealth tax rate will generally decrease in the canton for all taxpayers. Additionally, the sale of real estate properties following a holding period longer than 25 years will no longer be exempt from real estate capital gain tax (minimum taxation of 2% is introduced).

I - Wealth tax

A deduction of CHF 82,200 per adult and CHF 41,100 per child is made from the individual’s net wealth. The net wealth is divided into bands and will be taxed as follows for 2024:

II - Supplementary tax on basic wealth tax

The above tax rates are basically applicable to taxpayers filing a tax return. Effective cantonal income and wealth tax is determined by multiplying the basic tax by the multiplier applicable for the tax (calendar) year in question, and then by adding the supplementary tax on wealth. 

Inheritance and gift taxes

With the exception of two cantons (i.e. Schwyz and Obwalden), all cantons levy inheritance and/or gift taxes if the deceased or donor had been resident of the respective canton, or if real estate located in the canton is transferred. In all cantons, spouses are exempt from inheritance and gift taxes, and most cantons also exempt direct descendants. The tax rate is progressive and is in most cases multiplied by a factor depending on the relationship between the deceased and the recipient. Switzerland has concluded a small number of tax treaties concerning inheritance taxes, but gift taxes are not covered by any tax treaty.

Property taxes

Some cantons levy a tax just on the holding of real estate. The tax rates and how this tax is calculated vary from canton to canton. 

Excise taxes, turnover taxes, registration taxes, custom duties 

At the federal level, the import of goods will be subject to custom duties based on weight and/or value and depending on the type of good as well as its origin.

In addition, the cantons and municipalities levy a number of excise taxes, such as road taxes, registration taxes, fire brigade taxes etc. These are usually smaller amounts and vary often by municipality.

Other non-income taxes 

Stamp taxes

Stamp duties are levied on certain transactions i.e. on the issue of Swiss securities, on security transactions in Switzerland, and on certain insurance (mainly liability and household insurance). The stamp taxes are levied by the broker or the insurance company and are in the end paid by the client. Rates are 0.15% for Swiss security transaction, 0.30% for foreign security transactions and normally 5% for insurance.

Transfer taxes

The transfer of real estate is taxed in most cantons. This tax is levied separately from a possible capital gains tax on the sale of the real estate. There is no corresponding tax at the federal level.

Treatment of foreign owned real estate 

Real estate located abroad needs to be included in the Swiss tax return for tax rate determining purposes, but any income out of it (actual or deemed rental income) will not actually be taxed in Switzerland.

Church tax

Almost all cantons levy a church tax for registered members of one of the respective official religious affiliations. The determination of the religious affiliation is part of registration process with the municipal authorities. Individuals without religious denomination or members of other than the official Swiss churches (e.g. Muslims, Jews, Anglo-Saxon church members) are not subject to cantonal church tax.