Leaving Switzerland: Tax Obligations for Expats When Leaving the Country

Many expats stay in Switzerland only for a limited time – whether for a project, studies, or a fixed-term employment contract. When leaving for another country, important questions arise: What tax obligations remain in Switzerland? What happens to ongoing tax procedures? And how do double taxation agreements (DTAs) affect departure?

This article provides a comprehensive overview of the tax consequences of leaving Switzerland and outlines the steps expats must consider.

Tax Residency and Departure

When does tax liability in Switzerland end?

Tax liability in Switzerland ends on the day of deregistration from the municipality. Until that date, all income and assets are subject to Swiss taxation.

Tax period upon leaving

While Switzerland generally uses the calendar year as the tax period, leaving the country requires a partial-year tax return, covering only the period from January 1 until the deregistration date.

Income Tax When Leaving

Income until departure

All income earned until deregistration must be taxed in Switzerland. This includes:

• Salary from employment
• Bonus payments or severance, if due before leaving
• Income from self-employment in Switzerland

Income after departure

After leaving Switzerland, only income directly related to Switzerland is taxable (e.g., rental income from property in Switzerland).

Wealth Tax When Leaving

Until deregistration

Worldwide assets must be declared until the deregistration date. This includes bank accounts, securities, and real estate.

After leaving

Once deregistered, only assets located in Switzerland (e.g., Swiss real estate) remain subject to wealth tax.

Withholding Tax for Expats

Deduction by employer

For expats subject to withholding tax (e.g., L- or B-permits), withholding tax remains valid until departure. The employer deducts the tax until the last working day.

Subsequent ordinary assessment

If certain conditions are met (e.g., annual income above CHF 120,000), a subsequent ordinary tax assessment may still be required when leaving.

Double Taxation Agreements When Leaving

Avoiding double taxation

Switzerland has concluded DTAs with over 100 countries. These agreements determine which country has the right to tax specific income after departure.

Typical cases

• Salary payments after leaving: Often still attributed to Switzerland if they relate to work performed in Switzerland.
• Pensions and retirement benefits: Taxed either in the new country of residence or the source country, depending on the DTA.
• Investment income: Foreign withholding taxes may be credited or refunded in Switzerland.

Administrative Obligations When Leaving

Deregistration with the municipality

Expats must officially deregister with the municipality. This information is automatically forwarded to the tax authorities.

Filing the tax return

Expats must submit a departure tax return for the current year. Income and assets are considered up to the deregistration date.

Additional tax and outstanding obligations

If insufficient tax was paid during the stay in Switzerland, the tax office may levy additional taxes. Conversely, refunds are also possible.

Practical Examples

Example 1: Expat with B-permit

A French expat leaves Zurich for Paris in July 2025. They must submit a partial-year tax return for January to July 2025. A bonus received in June 2025 is taxed in Switzerland.

Example 2: Expat with property in Switzerland

A British expat moves to London in December 2025 but retains a rental apartment in Geneva. They remain tax liable in Switzerland for the rental income and wealth tax on this property.

Common Mistakes and Tips

Common Mistakes

• Forgetting or delaying deregistration with the municipality
• Ignoring the partial-year tax return
• Assuming all tax obligations end automatically upon departure
• Failing to consider double taxation agreements

Tips for Expats

• Notify the tax office of departure early
• Submit the partial-year tax return completely and accurately
• Check applicable double taxation agreements to avoid unnecessary tax burden
• Consult a tax advisor for complex income and asset situations

Conclusion

Leaving Switzerland ends full tax liability but still carries administrative obligations. Income and assets up to the deregistration date must be properly declared, and depending on the situation, limited Swiss tax liability may remain.

Expats who take double taxation agreements into account and deregister on time can minimize tax risks and ensure a smooth transition to their new country of residence.