Latest Swiss Tax Updates
Stay informed with the latest Swiss tax law changes, updates, and new regulations. Get expert analysis and understand the implications for your tax situation.
Imputed Rental Value to Be Abolished After 2025 Referendum
Swiss voters approved the abolition of the imputed rental value (Eigenmietwert) system in the September 2025 referendum
Summary
On 28 September 2025, Swiss voters approved the reform package that abolishes the taxation of imputed rental value on owner-occupied homes. Implementation details are still being finalized, and the changes are not expected to take effect before 2028.
Key Changes
- Imputed rental value will no longer be taxed on owner-occupied primary residences
- Deductions for mortgage interest and property maintenance will be significantly restricted
- Cantons may introduce a special property tax on second homes
- Entry into force is expected no earlier than 2028
- Transitional rules are still being drafted
Implications
- Homeowners with low mortgages will generally benefit
- Highly leveraged owners should review their financing strategy
- Consider the timing of major renovations while deductions still apply
- Second-home owners should monitor cantonal property tax plans
Retroactive Pillar 3a Buy-Ins Possible From 2025
Contribution gaps from 2025 onwards can be closed retroactively for up to ten years
Summary
Since 1 January 2025, anyone with AHV-liable income in Switzerland can retroactively close pillar 3a contribution gaps that arise from 2025 onwards, going back up to ten years. Buy-ins are fully tax-deductible in addition to the regular annual contribution.
Key Changes
- Applies to contribution gaps arising from 2025 onwards
- Gaps can be closed up to ten years later
- Buy-in requires AHV-liable income in the year of the gap and the year of the buy-in
- Buy-ins are tax-deductible in addition to the regular annual maximum
- Maximum buy-in per year equals the small contribution limit
Implications
- Review your contribution history from 2025 onwards
- Plan buy-ins for high-income years to maximize tax savings
- Keep documentation of AHV-liable income
- Combine with regular contributions for maximum deduction
Pillar 3a Maximum Contribution Raised to CHF 7,258
Updated pension parameters for 2025 including pillar 3a limits and BVG thresholds
Summary
For 2025, the pillar 3a maximum contribution rises to CHF 7,258 for employees with a pension fund and CHF 36,288 (max. 20% of net income) for those without. BVG parameters were adjusted accordingly.
Key Changes
- Pillar 3a maximum with pension fund: CHF 7,258
- Pillar 3a maximum without pension fund: CHF 36,288 (max. 20% of net income)
- BVG entry threshold: CHF 22,680
- BVG coordination deduction: CHF 26,460
- Minimum AHV contribution for non-employed persons: CHF 530
Implications
- Adjust standing orders to the new maximum
- Self-employed should recalculate their 20% limit
- Review BVG coverage for part-time employees
- Update payroll parameters for 2025
VAT Rates Increased to 8.1% / 2.6% / 3.8%
Swiss VAT rates rose on 1 January 2024 to finance the AHV reform
Summary
Following the AHV 21 vote, Swiss VAT rates increased on 1 January 2024: the standard rate from 7.7% to 8.1%, the reduced rate from 2.5% to 2.6%, and the special accommodation rate from 3.7% to 3.8%.
Key Changes
- Standard rate: 8.1% (previously 7.7%)
- Reduced rate for essential goods: 2.6% (previously 2.5%)
- Special rate for accommodation: 3.8% (previously 3.7%)
- Net tax rates for the simplified method were adjusted accordingly
- The additional revenue is earmarked for AHV financing
Implications
- Update invoicing, tills, and accounting systems
- Check contracts spanning the rate change
- Apply the correct rate based on the date of supply
- Review net tax rate method elections
AHV 21 Reform in Force: Reference Age 65 for All
Unified reference age and flexible retirement options since 1 January 2024
Summary
The AHV 21 reform took effect on 1 January 2024. The reference age for women rises stepwise to 65 from 2025, retirement becomes more flexible, and the transitional generation receives compensation measures.
Key Changes
- Uniform reference age of 65 for men and women (phased in for women from 2025)
- Pension can be drawn flexibly between 63 and 70
- Partial pension withdrawal is possible
- Compensation supplements for women of the transitional generation (born 1961-1969)
- Working beyond 65 can now improve the pension
Implications
- Women born 1961-1969 should review their retirement planning
- Consider partial retirement options
- Evaluate whether deferring the pension pays off
- Employers should update HR and payroll processes
OECD Minimum Tax: 15% for Large Multinationals
Switzerland applies the OECD/G20 minimum tax to large corporate groups since 2024
Summary
Following the June 2023 constitutional vote, Switzerland introduced a qualified domestic minimum top-up tax (QDMTT) of 15% for large multinational groups from 1 January 2024. SMEs and purely domestic companies are not affected.
Key Changes
- Applies to groups with consolidated revenue of EUR 750 million or more
- Implemented as a domestic top-up tax (QDMTT)
- Ordinary cantonal and federal profit taxes remain unchanged
- Cantons keep the majority of the additional revenue
- International top-up elements (IIR) applied from 2025
Implications
- Affected groups must calculate their effective tax rate per jurisdiction
- Review group structures and intercompany arrangements
- SMEs below the threshold are not affected
- Monitor cantonal responses such as location incentives
Stay Updated with Tax Changes
Subscribe to our tax update newsletter and never miss important changes that could affect your tax situation.
We'll send you weekly tax updates and important changes. Unsubscribe anytime.
Need Help Understanding Tax Changes?
Our tax experts can help you understand how these changes affect your specific situation and optimize your tax position accordingly.