Taxation of Individuals
Posted: Wed Feb 19, 2025 8:51 am
Each canton sets its own tax rates and generally imposes the following taxes: income, net wealth, real estate, inheritance, and gift tax. The specific tax rate varies by canton and is between 21% and 46%.
In Switzerland, the transfer of assets, on death, to a spouse, children and/or grandchildren is exempt from gift and inheritance tax, in most cantons.
Capital gains are generally tax free, except in the case of real estate. The sale of company shares is one of the assets, that is exempt from capital gains tax.
Lump Sum Taxation – if not working in Switzerland
A non-Swiss national, who does not work in Switzerland, can apply for Swiss residency israel mobile database under the system of ‘Lump Sum Taxation’.
The taxpayer’s lifestyle expenses are used as a tax base instead of his/her global income and wealth. There is no reporting of global earnings and assets.
Once the tax base has been determined and agreed with the tax authorities, it will be subject to the standard tax rate relevant in that canton.
Work activities outside Switzerland are permitted. Activities relating to the administration of private assets in Switzerland can also be undertaken.
Third country nationals (non-EU/EFTA) may be required to pay a higher lump-sum tax on the basis of “predominant cantonal interest”. This will depend on several factors and varies case by case.
In Switzerland, the transfer of assets, on death, to a spouse, children and/or grandchildren is exempt from gift and inheritance tax, in most cantons.
Capital gains are generally tax free, except in the case of real estate. The sale of company shares is one of the assets, that is exempt from capital gains tax.
Lump Sum Taxation – if not working in Switzerland
A non-Swiss national, who does not work in Switzerland, can apply for Swiss residency israel mobile database under the system of ‘Lump Sum Taxation’.
The taxpayer’s lifestyle expenses are used as a tax base instead of his/her global income and wealth. There is no reporting of global earnings and assets.
Once the tax base has been determined and agreed with the tax authorities, it will be subject to the standard tax rate relevant in that canton.
Work activities outside Switzerland are permitted. Activities relating to the administration of private assets in Switzerland can also be undertaken.
Third country nationals (non-EU/EFTA) may be required to pay a higher lump-sum tax on the basis of “predominant cantonal interest”. This will depend on several factors and varies case by case.