Taxes for freelancers and the self-employed in Switzerland in 2025

This guide breaks down what you need to know if you’re self-employed in Switzerland, from income tax rates and registration requirements to deductions, VAT and compliance rules. Understanding how allowances work and selecting the right tax regime are crucial steps toward keeping more of your earnings and building a sustainable freelance career in Switzerland.

Key takeaways: banking in Switzerland for expats

• Understand the tax layers: Income is taxed at federal, cantonal, and municipal levels, so your location makes a difference to your final bill.
• Register early: Set up with your AHV/AVS office once you start, and add VAT or Commercial Register entries when your turnover meets the thresholds.
• Keep good records: Detailed invoices, receipts and statements are essential to claim deductions and avoid penalties.
• Plan for social security: Contributions to AHV/IV/EO are mandatory, and you can top up with voluntary pensions or private cover.
• Manage cross-border income: International freelancers often juggle multiple currencies – a Wise Business account helps with low-cost conversion and integrations with accounting software.

The self-employed tax system in Switzerland

Self-employment is a significant part of the Swiss labour market, making up around 16.6% of total employment in 2023 according to World Bank data. For expats and local freelancers alike, the good news is this means a well-established framework exists, but navigating it requires care. 

If you’re self-employed, you’ll be taxed on your earnings and expected to make social security contributions (AHV/IV/EO) – in 2024, the maximum contribution was 10% of your earned income. Unlike employees, you need to handle these responsibilities yourself, which makes record-keeping and financial planning essential.

The structure of your business determines how you’re taxed. Sole traders and freelancers are taxed as individuals, meaning business income is added to personal income. Partnerships follow a similar approach, with income also considered to be personal income and profits flowing through to the partners’ personal tax returns. Corporations such as GmbHs or AGs, on the other hand, are treated as separate legal entities and pay corporate taxes on their profits, while owners are also taxed on dividends or salaries received.

One key feature of the Swiss system is its three-tier approach: you’ll pay federal tax, plus cantonal and municipal taxes. Federal income tax is capped at 11.5%, but cantonal and local rates vary widely and levied at progressive rates. In some regions effective tax rates remain moderate, while in others they can more than double your overall burden. Because of this, where you register your business matters almost as much as how much you earn.

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Self-employed income tax in Switzerland 

Both residents and non-residents in Switzerland pay income tax, but the scope of their liability differs. Residents are taxed on worldwide income, with certain exemptions for foreign earnings under double tax treaties. Non-residents are taxed only on Swiss-sourced income, such as profits generated from business activities carried out in Switzerland.

Your tax bill also depends on your business structure. Sole traders and freelancers are taxed as individuals, with business income included in their personal tax return. Partnerships also pass profits through to individual partners. Corporations such as GmbHs or AGs are taxed separately as legal entities, and owners are taxed again on any salary or dividends received.

Because cantonal and local taxes differ so much, your overall rate can vary significantly even at the same income level. For accurate planning, use your canton’s official calculator and guidance. You can find links to every cantonal tax administration on the Swiss Tax Conference portal.

Tax for self-employed sole traders and freelancers

If you operate as a sole trader (Einzelunternehmen), you and your business are treated as one taxpayer. Your freelance profits are added to your personal income and taxed at three levels: federal, cantonal and municipal. 

There’s no special flat micro-enterprise income tax in Switzerland, and sole traders use the standard progressive system with normal deductions. However, two useful simplifications exist:

Simplified bookkeeping: If your annual turnover is under CHF 500,000, you can keep simplified records of income, expenses, and assets instead of full double-entry accounts. This reduces admin but doesn’t change how income tax is calculated or how much you owe.

VAT options for small businesses: If your turnover reaches CHF 100,000 or more, you’ll need to register for VAT. Many freelancers choose the net tax rate method, which allows you to apply a sector-specific net rate to turnover instead of tracking every input tax credit. To qualify, your annual VAT liability must also be under CHF 103,000. From 2025, businesses with turnover up to CHF 5,005,000 can also opt for annual VAT filing.

Benefits

• Less admin thanks to simplified bookkeeping and the net rate method.
• Annual VAT filing (from 2025) can make cash flow easier to manage.

Limitations

• Thresholds apply – if you exceed turnover or VAT-liability caps, you’ll have to switch to the effective VAT method.
• You can’t deduct input VAT under the net rate method.
• Some industries have special VAT rules, and if you run different kinds of business activities, you may need to use more than one net tax rate.

Tax for partnerships

Switzerland recognises three main partnership forms: the simple partnership, the general partnership, and the limited partnership. These are commonly used by small firms and project teams, and are governed by the Swiss Code of Obligations.

How partnerships are taxed

Partnerships are treated as “transparent” for tax. The partnership itself is not taxed like a company. Instead, each partner reports their share of profit as personal income, and their share of partnership assets for wealth tax, at federal, cantonal, and municipal levels. 

If you employ staff

A partnership that hires employees takes on standard Swiss employer duties. You register with the AHV/IV/EO compensation office, pay social insurance contributions, and arrange mandatory insurances where applicable, such as accident insurance and occupational pension once thresholds are met.

Tax for incorporated companies

In Switzerland, incorporated companies (GmbH or AG) are separate legal entities with limited liability, commonly used by SMEs and larger firms. Corporate income tax is paid at federal, cantonal, and municipal levels and the federal rate is 8.5% on profit after tax (around 7.8% on pre-tax profit). With cantonal and municipal taxes added, the overall effective rate usually falls between 11.9% and 20.5%, depending on location.

Most cantons also levy a capital tax on equity, even if no profit is made. When profits are distributed, a 35% withholding tax applies to dividends. Swiss residents can usually reclaim or offset this if income is declared, while many tax treaties reduce the rate for non-residents.

How to register for self-employment tax in Switzerland

Getting started mainly comes down to letting the right offices know who you are, what you do, and when you began. Here’s the typical process for most sole traders and small partnerships.

The first step is registering with your cantonal AHV/AVS compensation office to confirm self-employed status and set up social security contributions. You’ll normally need to provide proof of business activity along with your ID and residence permit if you’re a foreign national. If your annual turnover is expected to exceed CHF 100,000, you’ll also need to register for VAT with the Federal Tax Administration via the ESTV ePortal. 

A sole proprietorship is legally created once business activity begins, not through an entry in the commercial register like a GmbH or AG. Only when annual revenue reaches CHF 100,000 are you obliged to register the business in the Commercial Register as a commercial enterprise. Below that threshold, entry remains voluntary.

Most paperwork can be handled online through EasyGov or directly with your cantonal office. When you register for VAT, you can also choose your preferred accounting method (effective or net tax rate).

If you’re freelancing internationally, some cantons may ask for evidence of foreign earnings. Wise Business account statements, which clearly show incoming payments and currency conversions, can help document this alongside your invoices.

Self-employed tax deductions and credits for Swiss freelancers and the self-employed

As a sole trader you can reduce your tax bill by claiming business expenses. Anything that’s necessary for your work is usually deductible, as long as you keep receipts, contracts, or account statements.

Typical write-offs include office or co-working rent, equipment and software, professional subscriptions, travel to clients, and business phone or internet costs. Larger assets like machines or vehicles are deducted over time at official depreciation rates – for example, up to 25% a year for equipment and 40% for vehicles.

If you work from home, part of your rent and utilities may be allowed when you have a dedicated workspace mainly used for business. Rules vary by canton, so keep a clear calculation and supporting documents.

Social security contributions (AHV/IV/EO) are deductible, and you can also lower your taxable income with pillar 3a payments. In 2025, self-employed people without a 2nd pillar can deduct up to 20% of income, capped at CHF 36,288.

How to file self-employed tax returns in Switzerland

The Swiss tax year runs from 1 January to 31 December, and you file in the canton where your business is registered. Returns cover federal, cantonal and municipal taxes together.

You’ll receive your return from the cantonal tax office and submit it back to them. Since 2024, every canton accepts electronic filing, so most freelancers now file through their canton’s online portal. Deadlines vary, but 31 March is common and extensions are available on request, often into autumn.

When filing, include your accounts or income/expense statement plus supporting documents such as bank statements, pillar 3a confirmations, insurance records, and VAT reports if registered. The federal portal also provides checklists to guide you, so you don’t need to worry about forgetting anything.

Cantons collect provisional tax during the year and issue a final assessment after reviewing your return. Overpayments are refunded, while underpayments must be settled by the due date, with interest if you’re late. With so many moving parts, keeping clear records is essential. Wise Business statements, for example, provide itemised histories of incoming payments and conversions that fit neatly alongside your invoices.

VAT obligations for self-employed workers

Swiss VAT applies when your worldwide taxable turnover reaches CHF 100,000. You register and manage everything in the ESTV ePortal, which is mandatory as of 1 January 2025. Certain activities remain exempt (for example many healthcare, education, insurance and financial services).

Current VAT rates (2025)

How and when you file

Most taxpayers file quarterly; monthly filing is possible in refund positions and semi-annual filing applies to the net tax rate method. From 2025, businesses with annual turnover up to CHF 5,005,000 and a good compliance record can apply to file annually in the ePortal.

Cross-border VAT considerations

If you invoice an EU business, services are usually taxed where the client is based. The customer applies the reverse charge, so you don’t add Swiss VAT – just include their VAT number on the invoice and note “reverse charge.”

For sales to EU consumers, non-EU suppliers can use the non-Union OSS scheme to charge the correct VAT for each country and file a single quarterly return.

In Switzerland, exports of services are generally zero-rated (no Swiss VAT charged). Keep clear records, including invoices, contracts, and bank statements, so your VAT return reconciles smoothly with your accounts.

Swiss social security for self-employed workers

If you work for yourself in Switzerland, you’re responsible for paying into the 1st pillar. This covers old-age and survivors’ insurance (AHV/AVS), disability insurance (IV/AI), and loss-of-earnings allowances (EO/APG).

From 2025, the combined contribution rate is 10.0% of net profit (AHV 8.1% + IV 1.4% + EO 0.5%). At lower incomes a degressive scale applies, but everyone pays at least CHF 530 per year. In addition, cantonal family allowance funds levy a small FAK contribution, which varies by canton.

What’s mandatory and what’s optional?

• Mandatory: AHV/IV/EO contributions if you’re recognised as self-employed, plus basic health insurance (KVG/LAMal), which every resident must arrange with an approved provider.
• Optional: 2nd-pillar pension (BVG/LPP) if you want to join as self-employed, and private accident or daily sickness insurance.
• Not available to the self-employed: Unemployment insurance (ALV/AC). Benefits are generally tied to employee status and prior contributions.

What these contributions cover

• Healthcare: covered by compulsory basic health insurance under KVG/LAMal (not via AHV). 
• Pension: AHV provides old-age and survivors’ pensions.
• Disability: IV provides disability pensions and measures.
• Income gaps: EO funds allowances such as maternity and paternity leave. 

If you hire staff, you’ll also need to register as an employer and pay employee social insurance.

Tax penalties and compliance in Switzerland 

If you miss a filing deadline, your canton will usually send a reminder and may add an administrative fine. If nothing is submitted after that, the tax office can estimate your income and issue an assessment on its own.

Late payments accrue interest – for federal taxes, the default interest rate is 4.5% as of 1 January 2025 (4% from 2026). If a balance remains unpaid, the authorities can move to collection.

Switzerland draws a clear line between tax evasion and tax fraud. Evasion is generally an administrative offence that leads to back taxes, interest, and fines. Fraud involves falsified documents and is a criminal offence that can carry fines or up to three years’ imprisonment.

Staying compliant is simple in practice. Keep accurate books, retain invoices and statements, tell the authorities when your details change, request an extension if you need more time, and pay provisional bills on schedule to avoid interest. Solid record-keeping saves money and stress at assessment time.

How to find an accountant or financial advisor in Switzerland

Getting professional help can save time and stress if you are new to the tax system, managing cross-border income, or setting up a company. Even straightforward returns may benefit from a quick review if you are unsure about deductions or filing requirements.

Support is available in different forms:

• Fiduciary firms and tax-preparation services for annual returns and day-to-day questions
• Full-service accounting companies that can also handle VAT, payroll and ongoing compliance
• Cantonal tax offices as a first stop for official guidance and deadlines
• Online bookkeeping tools like Xero or QuickBooks, which sync with Wise Business for simpler multi-currency records

When choosing an adviser, it is worth checking credentials. In Switzerland, protected titles such as Swiss Certified Tax Expert or Certified Fiduciary Expert indicate professional training. Membership in associations like EXPERTsuisse or TREUHAND|SUISSE also shows a commitment to standards and ongoing education. Always ask for a written engagement that sets out fees and scope before you agree to proceed.

Costs vary by canton and complexity, but many firms offer flat-rate packages for tax returns alongside hourly billing for advisory work, so clarifying this upfront helps avoid surprises down the line.

International considerations for expat freelancers

If you live in Switzerland, you’re generally taxed on worldwide income and assets, so foreign bank accounts and investments must be included in your return for income tax and wealth tax. Switzerland also exchanges account data with partner countries under the AEOI/CRS standard, which makes accurate, consistent reporting essential.

Double tax treaties help prevent the same income being taxed twice. In practice, Switzerland either exempts foreign income with progression (using it to set your rate) or grants a limited foreign tax credit for withholding on items like dividends or interest. The method depends on the country, so check the relevant treaty on the Federal Tax Administration’s website when you file.

To stay compliant, keep evidence for each cross-border payment and follow your canton’s process for claiming relief or credits. Being organised makes it far easier to show when tax has already been paid abroad.

How Wise helps: Multi-currency accounts let you receive client payments in different currencies at transparent rates, while downloadable, itemised statements make it easier to match invoices to incoming funds for Swiss filing and any treaty claims you submit.

Useful resources

• Swiss Federal Tax Administration: VAT rules, rates, ePortal for registration and filing.
• ch.ch: Guidance on self-employment and tax returns.
• EasyGov & SECO SME Portal: Online company registrations and Commercial Register info.
• AHV/AVS information centre: Leaflets and forms for self-employed social security.
• Swiss Tax Conference (SSK) directory: Links to every cantonal tax administration.
• EXPERTsuisse: Directory of certified tax and fiduciary professionals.
• TREUHAND|SUISSE: Member search for fiduciary advisers serving SMEs and individuals.

Conclusion

Switzerland’s tax landscape rewards freelancers who stay organised. The rules differ between sole traders, partnerships and companies, and each canton has its own rates. Knowing where you stand early makes it much easier to plan ahead and avoid surprises.

For most freelancers, the essentials are clear: register with your AHV/AVS office once you start, sign up for VAT if your turnover crosses the CHF 100,000 line, and keep reliable records so deductions and filing go smoothly. 

If you earn abroad, remember to report foreign income and assets, and check how the relevant tax treaty applies to your situation. Good organisation is the simplest way to stay compliant and avoid penalties.

Wise Business helps you handle the money side of things with less friction. Receive client payments in multiple currencies at the mid-market exchange rate, hold balances without forced conversions and keep everything tidy with downloadable statements and integrations for tools like Xero and QuickBooks. 

If you want a smoother way to manage international income and stay ready for tax time, explore Wise Business.

FAQs

Do freelancers pay tax in Switzerland?

Freelancers in Switzerland must pay tax on their business profit at the federal, cantonal, and municipal levels. They also contribute to social insurance through AHV/AVS, IV/AI, and EO/APG. If their worldwide taxable turnover reaches CHF 100,000, they’re required to register for VAT as well.

What is a freelance tax code in Switzerland

There is no separate “freelance tax code” in Switzerland. Sole traders are taxed under the ordinary rules for self-employed people. Each business is issued a UID number, and if VAT registration is required, the UID is extended with the suffix MWST/TVA/IVA for invoicing.

Do I need to register as a freelancer in Switzerland?

Anyone who is self-employed will need to register with their cantonal AHV/AVS compensation office. VAT registration is needed if annual turnover exceeds CHF 100,000, and sole proprietors must enter the Commercial Register once they pass the same threshold. Most of these steps can be completed online, and some freelancers choose to register earlier to have an official listing.

Can I be self-employed and employed in Switzerland?

It is possible to be employed and self-employed at the same time in Switzerland. The AHV system treats each role separately, so contributions are calculated individually for employment and freelance work. Good record-keeping makes it easier to show which income belongs in each category when filing taxes.

Can I freelance in Switzerland with a student visa?

Students in Switzerland face restrictions on self-employment. EU/EFTA students can apply for permission to freelance if they meet residence and financial requirements. For non-EU/EFTA students, self-employment is generally not permitted during studies unless specific authorisation is granted or the permit is changed. In many cantons, non-EU/EFTA students can only take up regular employment after six months of study. Checking the rules in your canton is essential before starting any freelance work.