Relocation tax guideMoving to Switzerland: Taxes for Expats 2026
Switzerland taxes residents on worldwide income at combined federal, cantonal, and communal rates that top out around 22-43% depending on the canton, and private capital gains on movable assets are tax-free. Wealthy foreigners who do not work in Switzerland can negotiate lump-sum (expenditure-based) taxation in most cantons. Residency turns on domicile or sustained presence.
Switzerland's appeal is built on three things: tax-free private capital gains, wide cantonal variation that lets you choose your rate, and an expenditure-based regime for wealthy non-working residents. But there is also a cantonal wealth tax and an inheritance tax in most cantons. This guide sets out how Swiss residents are taxed, how lump-sum taxation works, and when Switzerland treats you as resident.
Switzerland: key tax rates
| Tax | Rate | Source |
|---|---|---|
| Corporate income tax | 11.9-20.5%Combined effective rate (federal 8.5% plus cantonal/communal tax); varies by canton | PwC Worldwide Tax Summariesas of 2026-01-14 |
| Top personal income tax | 22.2-43.2%Combined top rate at the cantonal capitals (federal 11.5% plus cantonal/communal); varies by canton and commune | PwC Worldwide Tax Summariesas of 2026-01-14 |
| VAT / GST (standard) | 8.1%Standard VAT rate | PwC Worldwide Tax Summariesas of 2026-01-14 |
| Capital gains | Exempt (movable)Private capital gains on movable assets are tax-exempt for individuals; real-estate gains are taxed at cantonal level | PwC Worldwide Tax Summariesas of 2026-01-14 |
| Inheritance / wealth tax | CantonalNo federal inheritance tax; levied by cantons (spouse and direct descendants generally exempt; rates vary by canton and relationship). A cantonal net-wealth tax also applies | PwC Worldwide Tax Summariesas of 2026-01-14 |
The Lump-sum taxation (expenditure-based) regime
Available in most cantons to first-time (or returning after 10+ years) foreign residents who do not work in Switzerland; abolished in a few cantons, including Zurich.
Instead of taxing actual worldwide income, the canton taxes an amount based on the taxpayer's annual living expenses. It is open only to foreign nationals taking up Swiss residence who carry on no gainful activity in Switzerland. A minimum taxable base applies and cantons set their own floors, so the figure is negotiated with the cantonal authority.
- Tax is assessed on deemed annual living expenses, not on actual worldwide income.
- A federal minimum base applies (broadly seven times the rent or rental value of the home), and each canton sets its own minimum.
- Only foreign nationals newly resident in Switzerland who do not work there qualify; Swiss nationals cannot use it.
- A few cantons (notably Zurich) have abolished it; availability and minimums vary by canton.
Source: PwC Worldwide Tax Summaries - Switzerland (as of 2026-06-24).
| Item | Lump-sum taxation | Ordinary taxation |
|---|---|---|
| What is taxed | Deemed annual living expenses (subject to a minimum) | Actual worldwide income and wealth |
| Who can use it | Newly resident foreign nationals not working in Switzerland | All residents |
| Worldwide income reported | No - assessed on expenditure | Yes |
Source: PwC Worldwide Tax Summaries - Switzerland (as of 2026-06-24).
When you become a tax resident
You are generally a Swiss tax resident if you have your domicile in Switzerland (the intent to stay permanently) or if you are present for at least 30 days while carrying on gainful activity, or 90 days without working. Residents are taxed on worldwide income and wealth; rates depend heavily on the canton and commune of residence.
Source: PwC Worldwide Tax Summaries - Switzerland (Residence) (as of 2026-06-24).
The canton matters more than the federal rate
Switzerland levies tax at three levels - federal, cantonal, and communal - and the federal portion is small. The combined top personal rate ranges from roughly 22% to 43% depending on where you live, so the choice of canton and commune is the single biggest driver of a resident's tax bill.
Cantons also levy an annual net-wealth tax and, in most cases, an inheritance tax (spouses and direct descendants are usually exempt). These are easy to overlook when comparing only income-tax rates.
Tax-free private capital gains
Private capital gains on movable assets - shares, funds, and similar - are not taxed for individuals in Switzerland. Gains on real estate are taxed separately at cantonal level. This exemption is a structural feature of the system, available to all individual residents, not a special regime.
Before you move: what to weigh
- Pick the canton before the country - combined rates, wealth tax, and inheritance tax all vary sharply by canton and commune.
- Lump-sum taxation is negotiated with the cantonal authority and has minimums; it is not available if you work in Switzerland.
- An annual net-wealth tax applies in every canton, separate from income tax.
- US citizens remain taxable by the US on worldwide income; the Switzerland-US treaty and credits then apply.
Get this right for your situation
Cross-border tax turns on your specific facts. Find a tax professional who works with people moving to Switzerland.
What is lump-sum taxation in Switzerland?
It is expenditure-based taxation: instead of taxing actual worldwide income, the canton taxes an amount based on your annual living expenses, subject to a minimum. It is open only to foreign nationals newly resident in Switzerland who do not work there, and a few cantons have abolished it.
Does Switzerland tax capital gains?
Private capital gains on movable assets such as shares are not taxed for individuals. Gains on real estate are taxed separately at cantonal level. Switzerland also levies an annual net-wealth tax, so the absence of a securities CGT does not mean a wealth-free regime.
When are you a Swiss tax resident?
Generally when you have your domicile in Switzerland, or are present at least 30 days while working or 90 days without working. Residents are taxed on worldwide income and wealth at combined federal, cantonal, and communal rates that vary widely by location.
Informational only, not tax advice. Cross-border tax depends on your personal circumstances and changes often; figures are dated to their sources. Confirm your position with a qualified professional before moving or filing.
Important disclaimer
Informational only — not tax advice. This page summarises publicly available information about tax in Switzerland as of July 2026. Tax laws change, individual circumstances vary, and the application of any rule depends on your specific facts.
TaxProsRated does not provide tax, legal, accounting, or financial advice. Before acting on anything you read here, consult a qualified tax professional licensed in your jurisdiction (in the US: CPA, Enrolled Agent, or attorney; in the UK: CIOT- or ATT-qualified adviser; in Australia: TPB-registered tax agent; elsewhere: a locally-licensed equivalent). TaxProsRated, its operators, and its contributors disclaim all liability for action taken in reliance on this page.