Corporate Taxes in Switzerland

Switzerland is globally recognized for its business-friendly taxation environment, attracting both domestic and foreign investors. The country’s federal system allows different layers of authority — the Swiss Confederation, cantons, and municipalities — to levy and collect taxes independently. This creates a flexible tax structure with generally low rates, making Switzerland a popular jurisdiction for international business.

In addition to favorable tax policies, Switzerland offers high political stability, a strong banking system, and a highly developed economy. These elements make it not only ideal for company formation but also for relocating personal tax residency. For businesses looking to establish a robust and credible legal entity, forming an AG in Switzerland is a widely chosen option due to its flexible capital structure and favorable perception among investors and tax authorities. Foreign nationals seeking to minimize their tax burden often choose Switzerland as a long-term destination.

Our experienced consultants offer comprehensive support for both corporate and individual tax planning, tailored to your location and business structure in Switzerland.

Switzerland consists of 26 cantons, each with its own taxation authority. This decentralized system allows investors to choose a canton that best suits their tax optimization goals. The tax burden can vary significantly depending on location, as cantonal and municipal taxes are imposed in addition to the federal corporate income tax.

These cantons are also proactive in offering tax holidays, innovation grants, and business relocation support. Choosing the right canton depends on your sector, company size, expected revenues, and whether IP or R&D incentives are relevant to your operation.

Our tax planning experts in Switzerland assist in evaluating which canton aligns best with your legal structure and long-term business goals.Clients benefit from the personalized services of Goldblum and Partners, a Swiss law firm specializing in strategic tax optimization, corporate structuring, and compliance across all cantons

The Swiss corporate tax system is built on three tiers: federal, cantonal, and municipal levels. This layered approach allows for tailored tax planning, as the overall burden depends on both the location and legal structure of the company.

The Swiss system is designed to balance transparency, efficiency, and competitiveness, making it particularly attractive for multinationals, SMEs, and investment companies.

Our accounting and tax consultants assist companies in optimizing their taxable base and securing available tax relief measures. In some cases, businesses that no longer meet their strategic objectives or become financially inefficient may consider company liquidation in Switzerland. This formal process ensures legal closure and proper distribution of assets under Swiss law.

At the federal level, Switzerland applies a flat corporate income tax rate of 8.5% on a company’s net profit after tax. This rate remains consistent nationwide and is governed by the Federal Tax Administration (FTA).

However, Switzerland’s real tax competitiveness lies in the way cantonal and municipal tax rates are layered onto this base rate. Depending on the canton where a company is registered, the combined effective tax rate may vary considerably.

This variability allows companies to strategically choose their canton of incorporation for tax efficiency. Moreover, certain business types — such as holding companies or mixed companies — may qualify for preferential cantonal regimes, further lowering their tax obligations.

Many cantons have also introduced patent box regimes, R&D incentives, or notional interest deductions (NID), depending on their economic focus and reform efforts under the Corporate Tax Reform (CTR III).

In this context, careful tax planning and inter-cantonal comparison are essential. Our Swiss tax specialists evaluate how cantonal policies affect your total tax burden and assist in relocation or restructuring strategies to maximize savings.

Switzerland is often perceived as a tax haven due to its low corporate tax rates, political neutrality, and strong financial infrastructure. However, the country maintains a high level of compliance with international tax standards, including transparency rules and information exchange protocols under the OECD.

Switzerland’s DTTs typically reduce or eliminate withholding taxes on dividends, interest, and royalties received from treaty partner countries. This makes it highly advantageous for international holding structures, IP management, and capital-intensive businesses.In high-value international transactions, especially those involving IP or intercompany structuring, the use of escrow account and services provides a secure mechanism for holding and disbursing funds in accordance with contractual and tax obligations.

Additionally, Switzerland has adopted key provisions of the OECD BEPS (Base Erosion and Profit Shifting) initiative, ensuring its tax practices remain aligned with global expectations while preserving competitive rates.

Our international tax specialists assist with cross-border structuring, application of DTT benefits, and regulatory compliance in accordance with Swiss and international standards.