An attractive environment for companies and private individuals
Switzerland is one of the most attractive countries in the world in terms of taxation. Thanks to moderate corporate and income taxes, low VAT and stable framework conditions, it attracts companies and skilled workers alike.
The combined tax burden for companies in Switzerland is between 12 and 24 percent, depending on the canton. The reason for this is the tax autonomy of the cantons, which specifically create attractive framework conditions in the competition between locations. Economically strong cantons such as Zug, Schwyz and Nidwalden rely on low corporate taxes to encourage companies to settle here.
Since the STAF tax reform (2019), companies have benefited from further advantages. These include the patent box, which taxes income from patents at a preferential rate, as well as deductions for research and development, which is particularly relevant for technology-oriented companies. Holding companies also benefit from special tax regulations, which makes Switzerland attractive for globally active companies.
Tax framework for private individuals
Private individuals also benefit from a moderate tax burden. Federal tax on income is a maximum of 11.5 percent, supplemented by cantonal and communal levies. Many cantons have a flat tax progression, which means that even higher incomes are subject to a low tax burden by international standards.
Wealth tax is usually less than one percent. There is no inheritance tax at federal level and some cantons offer regulations for wealthy newcomers. Foreign nationals without gainful employment in Switzerland can benefit from lump-sum taxation.
Value added tax as a locational advantage
With a rate of 8.1 percent, Swiss VAT is one of the lowest in Europe. A clear advantage over countries such as Germany (19 %) or France (20 %).
International developments in view
International pressure, particularly from the OECD and the EU, is demanding adjustments to prevent tax competition. Switzerland is responding with reforms, but without giving up its attractiveness as a business location.