Residence and tax liability: when do you have to pay taxes in Switzerland?
If you are moving to Switzerland, you may be wondering when you will be liable to pay taxes and what that means for you. The Swiss tax system differs from those of other countries in many ways, which makes understanding the basics all the more important. Here, you will find a simple, clear introduction to "residence and tax liability" for expats.
When does tax liability start in Switzerland?
In principle, if you live or work in Switzerland, you are liable for taxes. Swiss tax law distinguishes two main types of liability.
1. Unlimited tax liability (residence):
- Unlimited tax liability (residence):
If you live permanently in Switzerland — meaning you reside, work, or establish your primary residence here — you are subject to unlimited tax liability. This means you must declare your worldwide income and assets in Switzerland. - Limited tax liability (employment only):
If you work in Switzerland temporarily, such as being a weekly commuter or a cross-border worker, and you keep your residence abroad, then you are only taxed in Switzerland on income from Swiss sources, such as a salary from a Swiss employer.
What is considered a "residence" in Switzerland?
You establish a residence if you:
- stay in Switzerland for at least 30 days and are employed; or
- stay in Switzerland for at least 90 days without employment; or
- have a permanent home (apartment or house) in Switzerland.
Note: Even if you do not officially register or only move to Switzerland temporarily, you may be liable for taxes as soon as you live and work here regularly.
Do I have to declare my worldwide income in Switzerland?
Yes – if you are resident in Switzerland, you are generally required to declare your worldwide income and assets. This includes, for example:
- salaries or pensions from abroad
- rental income from property in your home country
- foreign bank accounts, investments, cryptocurrencies
This does not mean you pay double tax (see double taxation), but it does affect the calculation of your tax rate.
Which tax authorities are in charge in Switzerland?
In Switzerland, taxes are primarily levied at the cantonal and municipal levels, in addition to the federal income tax. This means that your place of residence determines which authority is responsible for collecting your taxes and how high they are, since tax rates vary widely between cantons and municipalities.
Our tip
If you are moving to Switzerland as an expat, it is important to address your new tax situation early on. Have your personal case reviewed to determine if you are subject to withholding tax or fully taxable, if you must file a tax return, and how to correctly report foreign income.
With Taxea.ch, you can avoid common mistakes, ensure that everything is done correctly from the start, and often save money.
More key information for expats
Withholding tax
For foreign employees in Switzerland, tax is deducted directly from their salary – often more than necessary. A refund may be possible.
Ordinary assessment
Despite withholding tax, a voluntary tax return can be worthwhile – for example through extra deductions and optimization options.
International income
In Switzerland, foreign income must be declared – providing accurate details ensures compliance and helps prevent issues with the tax authorities.
Double taxation
Through international treaties, expats pay tax on their income just once – proper reporting helps prevent tax-related conflicts.
Tax deductions
From professional expenses to pillar 3a contributions – knowing which deductions apply can save taxpayers hundreds of francs every year.
Assets & foreign accounts
Foreign assets or bank accounts must also be properly declared in Switzerland – ensuring full compliance without risk.
Spouse living abroad
Do you and your partner live in different countries? This can affect your tax liability in Switzerland and the applicable rate.
Do you have any questions?
It’s not always clear when tax liability begins in Switzerland or how a change of residence is handled. Contact us, and we'll help you out!