Most residents must file an annual Swiss tax return if their income or assets exceed certain thresholds or if they are not fully taxed at source. The exact rules depend on your canton of residence, your marital status and your type of income. We review your situation and clarify whether a Swiss tax return is required and which deadlines apply.

Short-term assignments are often subject to Swiss withholding tax on employment income. However, depending on your length of stay, residence status, employer structure and treaty rules, you may still need to file a Swiss tax return or can claim a correction of withholding tax. We analyse your assignment and ensure correct treatment under Swiss law and any applicable tax treaty.

The United States taxes its citizens and residents on worldwide income, even when they live in Switzerland. The Switzerland–U.S. tax treaty and foreign tax credit rules are designed to mitigate double taxation, but they do not eliminate it automatically. Proper coordination of timing, treaty provisions, exclusions and credits is essential to avoid unnecessary double taxation.

Key Swiss taxes include income tax on employment and investment income, wealth tax on worldwide assets, and social security contributions (AHV/AVS). For U.S. persons, these Swiss taxes interact with U.S. federal income tax, foreign tax credits, the Foreign Earned Income Exclusion and reporting obligations such as FBAR and FATCA.

Swiss tax is levied at the federal, cantonal and communal levels, and many cantons tax wealth directly. Capital gains on privately held shares are often tax-free in Switzerland if you qualify as a private investor. In contrast, the U.S. system focuses on federal and state income tax, taxes capital gains more broadly and does not impose a general wealth tax. These structural differences require coordinated planning.

Yes. U.S. citizens and green card holders generally must file annual U.S. income tax returns, even when they are tax resident in Switzerland and even if no U.S. tax is ultimately due. In many cases, the Foreign Earned Income Exclusion and Foreign Tax Credit can reduce or eliminate the U.S. tax liability, but the filing obligation remains.

The FEIE allows qualifying U.S. taxpayers abroad to exclude a portion of their foreign earned income from U.S. taxation, subject to specific tests. However, it does not apply to investment income and may interact with foreign tax credits and Swiss tax in ways that need to be carefully evaluated. We help you determine whether FEIE, foreign tax credits or a combination is best for your situation.

In many cases, Swiss income tax paid can be claimed as a foreign tax credit on your U.S. return, reducing your U.S. tax liability. The credit is subject to limitations and detailed rules, including separate baskets for certain income categories. Proper documentation and coordination with your Swiss tax position are essential to maximise the benefit.

Swiss cantons levy an annual wealth tax on the net value of your worldwide assets, such as bank accounts, securities and real estate, subject to exemptions. The rates and thresholds vary by canton. While there is no wealth tax at the U.S. federal level, the Swiss wealth tax can influence your overall effective tax burden and should be factored into your planning.

Capital gains on privately held shares are generally tax-free in Switzerland if you qualify as a private investor and do not meet certain criteria for professional trading. However, U.S. tax law typically taxes capital gains, and Swiss holdings may raise additional U.S. tax and reporting questions. We advise on both sides to ensure coordinated treatment.

In Switzerland, contributions to Pillar 2 and Pillar 3a can be tax-deductible, and benefits are typically taxed upon payout, often at preferential rates. For U.S. persons, the U.S. tax treatment of Swiss pension contributions and accruals can differ significantly and may require special reporting. We help align Swiss pension planning with U.S. tax rules.

Swiss tax authorities may treat U.S. retirement accounts differently from Swiss pension schemes. Income and withdrawals can be taxed under Swiss rules, while contributions may not receive the same tax benefits as in the U.S. The interaction between Swiss and U.S. tax treatment requires careful review to avoid surprises.

U.S. persons with Swiss bank and financial accounts often have U.S. reporting obligations, such as FBAR (FinCEN Form 114) and FATCA-related forms (e.g., Form 8938). These filing requirements are separate from your tax return and can apply even if the accounts generate little or no income. We help ensure full compliance with all relevant reporting rules.

Many non-U.S. mutual funds and investment vehicles, including Swiss funds, are treated as Passive Foreign Investment Companies (PFICs) for U.S. tax purposes. PFIC status can lead to punitive U.S. tax treatment and complex reporting on Form 8621. We review your Swiss investments and help you understand and manage PFIC exposure.

Swiss tax return deadlines vary by canton and may differ for individuals and companies. Extensions are often available upon request. We monitor the relevant deadlines for your canton and ensure timely filing of all required returns and forms.

Most cantons provide their own software or online portals for e-filing Swiss tax returns. Requirements for digital signatures, attachments and supporting documents vary by canton. We prepare your return, submit it electronically where possible and manage any follow-up questions from the authorities.

Switzerland levies a 35% withholding tax (Verrechnungssteuer) on certain investment income, such as dividends. Residents can usually reclaim all or part of this tax via their Swiss tax return. For non-residents and U.S. persons, double tax treaties and U.S. foreign tax credit rules play a key role in the final burden.

Swiss real estate is subject to income tax on rental income (or deemed rental value for owner-occupied property), wealth tax on the property value and, in many cantons, real estate gains tax on the sale. Property may also trigger real estate transfer tax and local charges. We assist with acquisition, ownership and sale from a Swiss and cross-border tax perspective.

You can contact our team at Sesch TaxRep GmbH for coordinated Swiss tax advisory and Swiss tax return services, with a particular focus on cross-border situations involving Switzerland, Germany and the United States. We work closely with your U.S. or German advisors or can connect you with trusted partners.