Switzerland

A tax haven

Due to its general low rate of taxation Switzerland is considered a tax haven. The political stability of the country as well as the various tax exemptions or reductions available to Swiss companies doing business abroad, or foreign persons resident in Switzerland all add to its popularity.

It is possible for foreigners to become residents of Switzerland after negotiating the amount of their income subject to taxation with the cantons and the municipalities in which they intend to live. Typically taxable income is assumed to be five times the accommodation rental paid.

Switzerland's corporate tax system means a corporation and its owners or shareholders are taxed individually.

Non-working residents

Non-working foreigners resident in Switzerland may choose to pay a "lump-sum tax" instead of the normal income tax. The tax, which is generally much lower than the normal income tax, is nominally levied on the taxpayer's living expenses, but in practice (which does vary from canton to canton), it is common to use the quintuple of the rent paid by the taxpayer as a basis for the lump-sum taxation.

Property Tax

A property tax of around 0.3 to 0.5 percent is levied by the cantons on the net worth of natural persons. The tax is levied on the value of all assets (including real estate, funds and shares) after the deduction of any debts.

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