Image
Quelle: https://www.1zoom.me/de/wallpaper/575849/z3089.2/

Corporate and individual taxes and incentives

Moderate tax rates meet smooth cooperation

The Greater Zurich Area provides attractive corporate and individual taxation compared to the rest of Europe. Thanks to the country’s high volume of tax autonomy, the combined effective corporate tax rates (federal, cantonal and municipal) in Switzerland range from 12% to 24%. This wide range is due to the fact that there is a lot of tax autonomy on the regional and local level. Individual taxation in Switzerland is also very moderate. Unlike corporate tax, there is a progression that makes it impossible to indicate a steady rate. However, in the Swiss cantons, progression is much flatter than in any other European country, and middle-class incomes are typically taxed at one-third or half of the European rates. 

Corporate taxes and incentives

Corporate taxes and incentives

Switzerland's decentralized structure shapes the country's tax system. Companies are taxed at federal (national), cantonal and municipal (communal) level.  All these taxes are collected by a single authority, usually by the canton. Some cantons may offer tax holidays or cash incentives after a thorough screening of a company’s business plan. Many cantons also offer R&D super deductions and a patent box. Currently, Switzerland has double taxation agreements (DTA) with approx. 120 countries. At 27.8%, Switzerland enjoys the lowest fiscal quota in Europe (tax revenues including social security contributions as a percentage of GDP).

Individual taxation

Individual taxation

Switzerland's decentralized structure shapes the country's tax system. Individuals are taxed at federal (national), cantonal and municipal (communal) level. Individual taxation in Switzerland is very moderate. Middle-class incomes are typically taxed at one third or half of the European rates. The maximum rate applies from an income of CHF 300,000 to 400,000 per year, ranging from 23% to 35% in the Zurich region. The BAK Taxation Index shows a median of 29.4% for Greater Zurich, well below the average European tax rate of 42.9%.

Meet with an expert

Let us connect you with the right person to learn more about how the Greater Zurich Area can support your business needs. 

Schedule meeting

Rankings, facts and figures

26 sovereign cantons with 2,202 independent municipalities

7.7% value-added tax rate (lowest in Europe)

(Reduced rate of 2.5% on certain everyday consumer goods)

Double taxation agreements with approximately 120 countries

27.8% fiscal quota (lowest in Europe)

Featured video

Watch the video to find out how we help companies set up and grow in Switzerland. 

Contacts

Image
Lukas Sieber
Lukas Sieber
Executive Director USA
Image
Marc Rudolf
Image
Portrait Rolf Bühler
Rolf Bühler
Director Europe