Private client taxation in Switzerland

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Switzerland taxes individuals moderately and predictably, and it does not tax private capital gains on movable assets. For entrepreneurs who move here, the choice of canton and of the right time to move decides how much of their wealth they keep.

Income and wealth tax

Individuals resident in Switzerland pay federal income tax of at most 11.5 per cent (Art. 214 para. 1 DBG), plus cantonal and communal income tax, which varies considerably between cantons. The cantons also levy an annual wealth tax on net worldwide assets, except foreign real estate and foreign permanent establishments (Art. 13 StHG; Art. 6 para. 1 DBG applies the same exemption method for income).

Capital gains

Gains on the sale of private movable assets, including shares, are tax-free (Art. 16 para. 3 DBG; Art. 7 para. 4 lit. b StHG). The exception is the professional securities dealer, whose gains are taxed as business income. Gains on Swiss real estate are subject to a cantonal real estate gains tax (Art. 12 StHG).

Lump-sum taxation

Foreign nationals who take up residence in Switzerland for the first time, or after ten years abroad, and who do not work in Switzerland may be taxed on their expenditure instead of their income and wealth (Art. 14 DBG; Art. 6 StHG). For federal tax the basis is at least seven times the annual rent or rental value of the home and at least CHF 400,000 (Art. 14 para. 3 DBG); the cantons set their own minimums. Several cantons, among them Zurich, Basel-Stadt and Basel-Landschaft, have abolished lump-sum taxation.

Inheritance and gift tax

There is no federal inheritance tax. The cantons levy inheritance and gift taxes, but spouses are exempt in all cantons and direct descendants in most of them; the cantons of Schwyz and Obwalden levy no inheritance or gift tax at all.

What pays off in practice

Negotiate a lump-sum ruling before arrival where it is available.
Sell or restructure shareholdings with care: the exemption for private capital gains has limits, especially for sales to companies you control.
Plan the move and the exit from your home country together; the departure taxation there often costs more than Swiss tax.

For general information only. This article does not constitute legal or tax advice, does not replace advice on an individual case and creates no lawyer-client relationship. It reflects the legal position as of October 2026.

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Dr Alexander Ressos, TEP

Rechtsanwalt/Attorney-at-Law

I am a Swiss attorney-at-law and also admitted as a solicitor in Hong Kong and in England & Wales, with almost 25 years of experience.

Together with my multilingual team, including Chinese, Japanese, Korean, Russian, Ukrainian and French native speakers, I advise companies and their owners from around the world on the full range of banking, corporate, commercial and tax law matters in Switzerland, including international tax planning, fiduciary services, and legal family office services including immigration & relocation or real estate investments. My practice has a particular focus on clients from growth and frontier markets in Greater China, Central Asia and the Caucasus, the rest of Asia, the Middle East, Africa and Latin America, and I equally advise clients from Europe and North America. Through an affiliated Swiss trust company, we also take care of the incorporation and ongoing administration of their companies and other structures, including accounting, tax returns and corporate secretarial services, and I serve as a professional director where required. With the support of a network of first-class cooperation partners, I also implement solutions worldwide.

My approach is to act as a trusted advisor who works directly with decision-makers, on an equal footing: I start from what you want to achieve and shape every structure, contract and tax decision around your commercial goals and how it improves your after-tax return. As “lawyers who make it happen”, my team and I stay involved until your company is set up, your structure is in place and your transaction has closed, and we remain available for any follow-on work that may be required. You benefit from bespoke solutions and personal attention, and sound, friendly and practical advice. We are not the lowest-cost provider in the market, nor do we intend to be; our aim is to deliver well-founded, proper solutions and excellent value for money.

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