A comparison of tax rates across different cantons and cities found that Zug – home to many multinational companies – offers the most attractive tax regime for families.
This content was published on
3 minutes
Le Matin Dimanche/jdp
Español
es
¿Dónde pagan menos impuestos las familias en Suiza?
According to an analysis by the French-language paper Le Matin DimancheExternal link, a married couple with two children and a modest income of CHF60,000 ($66,000) doesn’t pay any income tax in Geneva and Zug. In contrast, the family would pay CHF1,562 in the city of Biel in Canton Bern.
A couple without kids and a higher salary of around CHF125,000, pays CHF5,451 in taxes in Zug. In Geneva, they would pay three times more in taxes and even four times more in Neuchâtel.
Geneva has a much more progressive tax rate than other cantons. As soon as a couple reaches an upper middle-class income of about CHF175,000, residents pay much more in taxes than those in neighbouring areas. Millionaires also pay a hefty share in Geneva relative to other cities and cantons.
In the French-speaking part of Switzerland, the city of Sion has the lowest tax rate whereas Lausanne and Neuchatel have gained a reputation for being a “fiscal hell” says the paper.
Canton Zug is well known for its fiscal attractiveness that has led firms such as commodities and raw materials giant Glencore and multinational Johnson & Johnson set up shop in the canton. It’s also been positioning itself as the capital of cryptocurrencies.
In June, the Zug parliament agreed to reduce the tax rate as an attempt to relieve pressure on families during the coronavirus crisis. This was met with criticism from left-wing parties as a public relations move.
Switzerland levies taxes at the federal, cantonal and local levels, with cantons setting their own rates. Wide variations exist: on a salary of CHF100,000, for example, rates can vary from below 8% (canton Zug) to almost 25% (canton Basel City).
Rates are graduated according to levels of income and assets, as well as family status; for example, married couples currently pay more than non-married couples, something the Federal Council nevertheless wants to change. A people’s initiative on the subject was withdrawn earlier this year.
In general, taxes tend to be lower than in much of Europe.
Cantons also retain control over coporation tax rates, which also vary throughout the country, and are often low. However, international pressure has led to efforts to overhaul and harmonise the system, including a May 2019 vote that led the scrapping of preferential tax deals for multinational firms based in the country. Many cantons have been lowering corporate tax rates to remain attractive to firms.
Popular Stories
More
Swiss Abroad
The citizenship obstacle course facing spouses of Swiss Abroad
What factors should be taken into account when inheriting Swiss citizenship abroad?
Should there be a limit to the passing on of Swiss citizenship? Or is the current practice too strict and it should still be possible to register after the age of 25?
Swiss wage protection measures agreed ahead of EU deal
This content was published on
Trade unions and Swiss cantons agree on domestic measures to protect wages, to pave the way for a treaty cementing future ties with the EU.
Swiss commodities trader Glencore faces $1.6bn loss
This content was published on
According to preliminary figures, Swiss commodities trader and mining group Glencore slipped into the red with a $1.6 billion loss in 2024.
Diplomat murder case: defendant to appeal rape conviction
This content was published on
A man acquitted of murdering an Egyptian diplomat in Geneva in 1995, will appeal his conviction for other offences, including rape.
This content was published on
Off-piste skiing accounts for 85% of fatal winter sports accidents, according to the Swiss Council for Accident Prevention.
If you want to start a conversation about a topic raised in this article or want to report factual errors, email us at english@swissinfo.ch.
Read more
More
How wealthy Swiss regions subsidise their poorer cousins
This content was published on
Each year, Switzerland’s unique redistributive system, a cornerstone of federalism, shifts money from richer to poorer parts of the country.
This content was published on
The percentage of personal income tax and social security contributions paid on Swiss wages is among the lowest of Western industrialised countries.
Corporate tax: slowing down the race to the bottom
This content was published on
Switzerland will soon vote on a revision of the corporate taxation system. How does this fit into international efforts to tackle avoidance?
You can find an overview of ongoing debates with our journalists here . Please join us!
If you want to start a conversation about a topic raised in this article or want to report factual errors, email us at english@swissinfo.ch.