Switzerland

{"ftc_utility":"high","fbar_trigger_notes":"Swiss bank accounts are common and are almost certain to exceed the $10,000 FBAR threshold. All Swiss financial accounts (checking, savings, brokerage, Pillar 3a accounts) must be reported on FinCEN 114. Switzerland's banking secrecy has been eroded through FATCA; Swiss banks report US account holders' data to the IRS under automatic exchange agreements. PFIC rules are a significant concern for US expats holding Swiss mutual funds or ETFs.","ftc_utility_reason":"Switzerland has high combined federal/cantonal/communal income tax rates that regularly exceed US federal rates. US expats in higher-tax cantons (Zurich, Geneva, Vaud) often generate excess foreign tax credits that can offset US tax on other foreign-source income. The Foreign Tax Credit is generally more advantageous than FEIE for US expats in Switzerland given the high Swiss tax rates. Using FEIE forfeits the ability to use FTC on excluded income.","presence_day_count_notes":"Switzerland does not impose strict visa day-count limits that would preclude the 330-day physical presence test for most legal residents. Switzerland's B permit (residence permit) holders and C permit holders can remain continuously. Short trips outside Switzerland do not disrupt the count. The physical presence test counts days in any foreign country (i.e., outside the US), so days in Switzerland count toward the 330.","typical_qualifying_method":"either","housing_exclusion_available":true,"physical_presence_test_applies":true,"estimated_housing_exclusion_usd":45000,"local_tax_rate_on_earned_income":0.3,"bona_fide_residence_test_applies":true}

{"pension_income":{"notes":"Swiss occupational pension distributions (Pillar 2 / BVG) and private pension distributions (Pillar 3a) are subject to Swiss income tax at a reduced rate - typically taxed at 1/5 of the normal rate for lump-sum distributions from Pillar 2, or at full progressive rates for annuity payments. Foreign pension income received by Swiss residents is also taxable in Switzerland at ordinary progressive rates unless a treaty provides otherwise.","tax_rate":null,"locally_taxed":true},"social_security":{"notes":"Under Article 22 of the US-Switzerland totalization agreement and treaty provisions, US Social Security benefits received by a Swiss resident are taxable only in the US. Switzerland does not levy income tax on US Social Security payments received by residents. This is a favorable outcome compared to many other countries.","locally_taxed":false,"treaty_protection":true},"roth_distributions":{"notes":"Switzerland does not have a formal Roth IRA equivalent, but qualified Roth distributions (contributions already taxed, qualifying distributions tax-free under US law) are generally treated as tax-free capital returns in Switzerland because Switzerland does not tax private capital gains. However, the Swiss tax authorities may seek to characterize Roth earnings as taxable income. Treaty treatment is not explicitly settled; in practice many expats report no Swiss tax on qualifying Roth distributions, but this should be confirmed with a local tax adviser.","locally_taxed":false},"us_401k_ira_distributions":{"notes":"Under Article 21 of the US-Switzerland tax treaty, distributions from US qualified pension plans (including 401k and IRA) are generally taxable only in the country of residence. A Swiss resident receiving 401k or IRA distributions would owe Swiss income tax at progressive cantonal/communal/federal rates on those distributions. The treaty prevents the US from withholding on such payments to Swiss residents if a proper treaty exemption claim (W-8BEN) is filed. The Swiss tax burden can be significant given combined rates reaching 35-40% in higher-tax cantons.","tax_rate":null,"locally_taxed":true,"treaty_protection":true}}

{"rate":0,"notes":"Switzerland does not levy capital gains tax on private individuals for securities (stocks, bonds, funds). Real property gains are taxed at the cantonal level under separate real estate capital gains tax rules, with rates and holding-period discounts varying by canton.","details":{"tax_type":"Capital Gains Tax","country_name":"Switzerland","country_iso_code":"CHE","source_references":["PwC Worldwide Tax Summaries - Switzerland","Swiss Federal Tax Administration (ESTV/AFC)"],"last_verified_date":"2026-06-03","general_description":"Private capital gains on movable assets (equities, bonds, mutual funds) are exempt from federal and cantonal income tax for individuals who are not classified as professional securities traders. Real estate capital gains are subject to cantonal real estate gains tax, which varies by canton and typically decreases with longer holding periods. Individuals deemed professional traders have gains taxed as ordinary income at progressive rates up to approximately 40% combined federal/cantonal/communal.","corporate_capital_gains":{"rate":0.085,"tax_treatment":"Capital gains realized by Swiss corporations are included in taxable income and subject to corporate income tax. The effective combined federal/cantonal/communal rate is typically 11.9%-21% depending on canton. The federal rate alone is 8.5% on profit after tax (effective 7.83% pre-tax)."},"individual_capital_gains":{"rate":0,"tax_treatment":"Exempt for private investors on movable assets. Real property gains subject to cantonal real estate gains tax, rates vary by canton (commonly 15%-40% at short holding periods, declining with time). Professional traders taxed at ordinary income rates up to combined ~40%."}}}

{"notes":"Switzerland levies a 35% federal withholding tax on dividends paid to residents and non-residents. Residents can reclaim the full 35% by declaring the income on their Swiss tax return, making the effective rate equal to their marginal income tax rate. The 35% is a withholding mechanism, not a final tax for Swiss residents. Non-residents rely on treaty provisions to reclaim part of the withholding; the US-Switzerland treaty generally reduces the rate to 15% (5% for qualifying corporate shareholders holding at least 10%).","rates":[{"rate":0.35,"type":"withholding","notes":"Swiss federal withholding tax (Verrechnungssteuer) applied at source. Fully reclaimable by Swiss residents who declare income."},{"rate":0.15,"type":"withholding","notes":"Reduced treaty rate for US residents under the US-Switzerland tax treaty."},{"rate":0.05,"type":"withholding","notes":"Reduced treaty rate for US corporate shareholders holding 10%+ of Swiss company."}]}