Switzerland » Taxes

Income Tax	VAT	Capital Gains Tax	Transfer Tax	Property Tax

Income Tax

Swiss tax rates for companies and individuals are among the lowest anywhere in Europe. Corporate taxes are approx. 16-25%, while individuals are taxed at rates between 5% and 20%. A careful choice of corporate structure can even push the effective rate of taxation to below 10%.

Net Worth Tax

This tax is levied by both the federal authorities and cantons. The tax is based on the value of a corporate entity's assets, normally equal to shareholders' equity (paid-in capital, legal reserves, and other retained earnings, public or otherwise). The rates are: A rate of 0.8% of the company's net worth is levied by the federal authorities annually; A rate of between 0.3% to 1% of the company's net worth is levied by the cantons annually, depending on the canton.

Capital Gains Tax

Tax on capital gains on real estate is 3-64%.

Transfer Tax

Real estate transfer tax (abolished in some places) 0.8-3.3%.

VAT

Switzerland has by far the lowest value added tax (VAT) anywhere in Europe. Regular VAT is 7.6%. Hotels are taxed at 3.6%, and necessities/convenience goods at just 2.4%. Other goods and services, such as medical care and education, are completely exempt from VAT.