Starting a business in
🇨ðŸ‡Switzerland
Checked November 4, 2026 · How we score
Corporate tax
14.6%
Top income tax
40%
Setup from
$4,000
all-in, first year
Time to form
21 days
visit usually needed
Taxes in Switzerland
| Corporate income tax | 14.6% Federal CIT is 8.5% of profit after tax (about 7.8% pre-tax); cantons and municipalities add the rest. Combined rates run from about 11.8% in Zug (Schwyz, Nidwalden, Lucerne are close) to about 20-21% in Bern and Geneva area cantons; 14.6% is a rough mid-point. Large groups (EUR 750m+) face a 15% minimum top-up tax from 2024. |
|---|---|
| Personal income tax (top) | 40% Federal income tax tops out at 11.5%; cantonal and municipal tax is added, so the combined top marginal rate is roughly 22% in Zug and Schwyz, 30-40% in Zurich and Basel, and up to about 45% in Geneva and Vaud. Church tax may apply. Wealth tax is levied by cantons (typically 0.1-0.9%). |
| Tax system | Worldwide income |
| Capital gains tax | 0%Private capital gains on movable assets (shares, crypto) are generally tax-free for individuals; gains on real estate are taxed by the canton; professional traders and gains from the sale of a business can be reclassified as taxable income. |
| Dividend withholding (non-residents) | 35% |
| VAT / GST | 8.1% |
| Social security | AHV/IV/EO contributions of about 10.6% split between employer and employee, plus unemployment insurance and compulsory pension (BVG) and accident cover; self-employed pay roughly 10% AHV. |
Forming a company in Switzerland
| Usual entity | GmbH (limited liability company) or AG (stock corporation) |
|---|---|
| Minimum capital | $25k |
| Setup cost (all-in) | $4,000–$9,000 |
| Annual running cost | $6,000–$18k |
| Time to incorporate | 21 days |
| Form remotely as a foreigner | No |
| Local director required | Yes |
| Local address required | Yes |
| Owners on public register | Yes |
| Statutory audit for small companies | No |
| Business banking for non-residents | Hard |
Residency and visas
EU/EFTA citizens can move freely and register. Non-EU founders need a cantonal work or self-employment permit under annual quotas, so residency is difficult and discretionary; some cantons offer lump-sum taxation to wealthy non-working foreigners.
| Digital nomad visa | No |
|---|---|
| Golden visa | No |
| Ease of residency for founders | 5/5 (1 = easiest) |
Special tax regimes
Lump-sum (expenditure-based) taxation
Wealthy foreign nationals who do not work in Switzerland can be taxed on living expenses instead of worldwide income, with a federal minimum tax base of about CHF 429,000 and higher in many cantons; several cantons have abolished it.
Cantonal tax competition
Each canton sets its own rates, so moving a company from Bern to Zug can cut the effective profit tax from about 20% to about 11.8%.
Patent box and R&D super-deduction
Cantons apply an up to 90% reduction on qualifying patent and similar IP income and may allow an extra R&D deduction of up to 50%.
Pros and cons
Why founders pick Switzerland
- Very strong reputation with banks, investors and enterprise customers
- Low combined corporate tax in cantons such as Zug and Schwyz
- Private capital gains on securities are generally tax-free
- Stable currency, rule of law and deep financial sector
Watch out for
- Setup and running costs are among the highest in Europe
- Swiss-resident signatory and Swiss address required
- Non-EU residency is quota-limited and slow
- 35% dividend withholding tax (partly refundable) and high wealth tax in some cantons
Best for: Funded startups and holding companies that need top-tier credibility · Crypto and fintech teams in Zug or Zurich · High-net-worth individuals using lump-sum taxation
Switzerland: common questions
What is the corporate tax rate in Switzerland?
There is no single rate. The federal rate is 8.5% of after-tax profit (about 7.8% pre-tax), and cantons add their own, giving combined rates of roughly 11.8% in Zug to about 20-21% in the highest-tax cantons. Most startups choose Zug, Schwyz, Lucerne or Nidwalden for the lowest totals.
Can a foreigner open a company in Switzerland?
Yes, but at least one person authorised to represent the company must live in Switzerland, and a Swiss address is needed. A GmbH needs CHF 20,000 fully paid in and a notarised deed, so it cannot realistically be done fully remotely without a local nominee director.
How much does it cost to set up a GmbH in Switzerland?
Expect roughly USD 4,000-9,000 in notary, registry, lawyer and domicile fees, on top of the CHF 20,000 share capital that stays in the company. Annual running costs with accounting and a nominee or domicile service are typically USD 6,000-18,000.
Is Switzerland a tax haven?
It is often called one because of low cantonal rates and bank secrecy history, but it is not on the EU blacklist and has adopted automatic information exchange and the OECD 15% minimum tax for large groups. It is better described as a low-tax, high-reputation financial centre.
How does Swiss lump-sum taxation work?
Foreign nationals who move to Switzerland and do not work there can be taxed on a deemed tax base tied to living costs rather than on worldwide income. The federal minimum base is about CHF 429,000 and cantonal minimums are often CHF 400,000-1,000,000.
Sources
- Swiss Federal Tax Administration (FTA)
- Swiss Global Enterprise - Taxes and company formation
- PwC Worldwide Tax Summaries - Switzerland
Compare Switzerland
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Not tax or legal advice. Rates and rules change; we check official sources and update every page, but verify with a licensed adviser in the country before acting. Spotted something out of date? Use the correction form below.