Oh yes, the dear tax issue…
Before we delve a little deeper into the Swiss tax system, let’s start with the good news:
No, you don’t have to pay tax twice and yes, the tax rate in Switzerland will be lower for you than in Germany. Whooooooo!
This is because a special tax system is applied in Switzerland, also known as withholding tax. This system is particularly relevant for people who work in Switzerland but do not have Swiss citizenship. Withholding tax is deducted directly from income and paid to the tax authorities. In the canton of Bern, for example, this tax rate is generally around 10 percent of income. This rate is quite low compared to Germany.
Another big question mark is usually double taxation – yes or no?
Switzerland has (fortunately) concluded agreements with many countries, including Germany and Austria, to prevent people who work and pay taxes in Switzerland from being taxed again in their home country. This means that you normally only pay tax in Switzerland and not in your home country.
Important: If the tax on your payslip is 25%, you should contact the relevant accounting department, because something is not right. Nobodies perfect. We emphasize this because it has already happened a few times.
However, it is important to emphasize that this information is of a general nature and cannot replace individual tax advice. Anyone working in Switzerland or planning to move there should find out about the specific tax regulations and obligations.
We are sharing our own experience with you here and would like to emphasize that this is not tax advice.
For more information on withholding tax, please visit the Canton of Bern website.
#no tax advice
