What can you deduct from your taxes in Switzerland?
- Julia Tatje
- Sept. 1.
- 6 min. reading time
I couldn't help but wonder... are worries tax-deductible too?
Filing your tax return is like a rendezvous in the Swiss tax system. As you would expect on a first date, we talk about the good things in our lives: what we do, what we own, what is important to us. But is there also room for our worries? Absolutely, because we want to know whether our partner cares about them. This is exactly what the Swiss tax system does by reducing our tax burden. But what can you deduct from your taxes?
Let's take a look at what you should definitely talk about on a first date and where it's better to remain mysterious.
It all depends on the partner - or the canton
How much we open up always depends on the person we are talking to. If there's no spark on the first date, we won't talk about our fears and worries. After all, everyone reacts differently to open communication. And yes: even in the Swiss tax system it depends on that.
Depending on the canton, you can deduct different expenses from your taxes. In many cases, the amount of tax deductions and thresholds also depends on the canton and may differ from those of the federal government. As is often the case in Switzerland, your place of residence determines your tax burden.
So, what can you deduct from your taxes?
Getting something off your chest: that's roughly how tax deductions feel after you've filed yourtax return. This is also the most important rule of thumb for what you can deduct from your taxes. Deductions are usually granted for expenses that are a financial burden.
The following eight categories of expenses are tax-deductible throughout Switzerland, albeit to varying degrees.
1. Professional expenses
The question, ‘What do you do for a living?’ could be followed by, ‘and how much does that cost?’ After all, pursuing a career can be expensive. It is precisely these professional expenses – meaning costs incurred by and for work – that are often tax deductible. This applies to the following professional expenses, among others:
Travel costs by public transport, which are capped at a maximum amount depending on the canton.
Expenses for bicycles at a flat rate of CHF 700.
Costs for meals away from home of CHF 1,600, if subsidised by the employer, or otherwise of CHF 3,200, flat rate and without receipts.
Further education costs that qualify for the profession, at varying amounts depending on the canton. Personal coaching, for example, is not considered relevant.
Professional expenses can often be deducted at a flat rate, which varies depending on income. In the case of particularly high expenses, the actual costs are deducted. This applies, for example, to people who live away from home during the week and deduct the costs of maintaining two households.
You can only deduct home office expenses from your taxes if your employer does not provide you with a workplace. In this case, you will need supporting documents, such as your employment contract, which states that you are required to work from home.
2. Pillar 3a and pension fund
Thinking about the future is exciting and thrilling on a first date. Planning for retirement is considerably less fun – but at least it brings tax deductions. Pillar 3a, the private and voluntary pension scheme in Switzerland, will be deductible up to the following amounts in 2025:
Up to CHF 7,258 for employees
Up to CHF 36,288 for self-employed individuals without a pension fund
Voluntary additional purchases into the pension fund can also be claimed as deductions. This can be worthwhile, for example, if you receive extraordinary bonuses or have a very high income. However, you need to weigh up carefully whether short-term tax reductions outweigh the higher taxes you may have to pay later on. It is best to discuss this with us beforehand!
3. Medical and disability-related costs and insurance payments
Speaking of precautions: insurance payments can also be claimed as deductions. Different limits apply depending on the canton. Very high costs, for example for doctor's visits, glasses, medication or therapy, may also be deductible under certain circumstances.
However, most taxpayers do not have such high expenses per year. But in the case of very high dentist bills or in vitro treatments, for example, it is worth taking a closer look. For this, we need the tax certificate from the health insurance companies and receipts for other costs.
4. Debts and interest on debts
Owning your own property is certainly a good topic of conversation on a first date. But owning property is no easy matter in Switzerland. About the imputed rental valuemeaning the tax on owner-occupied property, and also the possibility of it being abolished.
For the time being, there are still advantages to being in debt. Currently, debts, including mortgages, can be deducted fully from taxable assets. Any interest incurred on these debts can be claimed against taxable income. This means you do not pay high property tax on a house that still largely belongs to the bank.
If the imputed rental value is dropped, this will change. For example, debts for owner-occupied property could only be deducted for the first ten years after the first purchase of real estate. More detailed information will follow after the vote on 28th of September.
5. Maintenance costs for real estate
The situation is similar for property maintenance costs. Currently, maintenance and renovation costs can be deducted if they preserve value or are used to finance energy renovations. Should the imputed rental value is abolished, this will only apply to rented properties.
6. Children and childcare
Your own children are always a good talking point. You are entitled to a child allowance for each child you declare on your tax return. The flat rates vary depending on the canton and the federal government.
In any case, this applies to children in the same household up to the age of 18 or, if in initial education, up to the age of 25. If the parents live separately, deductions are shared or awarded to the person who pays the majority of the maintenance.
Tax deductions are also available for childcare costs, for example for nannies, nurseries or after-school care. These deductions have recently been significantly increased. In the canton of Zurich, for example, they amount to up to CHF 25,000 per child per year. However, you will need receipts for these costs.
7. Alimonies and other financial assistance
This may not be a hot topic for the first date, but sooner or later, new partners will need to know about child support or alimony payments from past relationships. At the very least, alimony payments are tax deductible, so it is worth including them in your tax return. On the other hand, anyone receiving alimony must declare it as income for tax purposes.
In rare cases, it is also possible to deduct support payments for persons in need. The precondition is always that the person cannot earn a living independently or, for example, that their pension is not sufficient to survive on. Deductions for supporting elderly individuals in countries without social security systems are more likely to be possible. However, this does not apply to students who are able to work themselves.
8. Donations to Swiss organizations
Those who do good will be rewarded? Of course, there are other good reasons to give something back financially. But according to a list from the tax office, donations to Swiss charitable organisations are tax-deductible too. However, this does not apply to donations to foreign organisations!
Additional tax deductions in your canton
In addition, there are numerous small and larger deductions, which often vary from canton to canton. In some cantons, such as Zug, you can also deduct part of your rent from your income. We will be happy to discuss the individual regulations of the cantons in a personal consultation.
And what cannot be deducted from taxes?
Even though we like to share the finer things in life with others, this does not reduce our tax burden. After all, there are many things we like to invest our money in, whether it's handbags and high heels while shopping in Zurich or a skiing holiday in Davos.
It is understandable that these expenses are not tax deductible. Just like the three-course meal on a first date. Not everything you share with your partner is of interest to the tax office. There are limits to your tax return – certainly once the bedroom door closes.
Household help is not tax deductible
It is common sense that luxury and pleasure do not reduce the tax burden. However, there is a lot of room for manoeuvre between financial burdens and luxury spending. For example, many people wonder whether household help is tax deductible. The answer is ‘no’, because it falls under personal living expenses, which are not deductible from taxes. Grocery shopping and private cars belong to the same category.
Please note: if you have a nanny who also does the housework, you need to think about taxes when drawing up the employment contract. The contract must clearly state how much of the nanny's time is spent on childcare, as only these costs are tax-deductible as childcare expenses.
What is also important for tax deductions
If you are open, honest, friendly and humorous on a first date, you probably have a good chance of getting a second one. When it comes to your tax return, there is a little more to it if you really want to benefit from tax deductions. These three tips will help:
Keep receipts: If there is no flat rate, receipts are essential. Save all invoices that prove deductible costs. It is best to keep them neat and well sorted!
2. Plan large expenses: Whether it is a high dentist bill or an expensive MBA course. It is often worth paying large expenses in one calendar year in order to exceed thresholds.
Submitting everything correctly: For many, this is the biggest difficulty. But just like your financial burdens, you do not have to tackle yourtax return alone.
To reduce your tax burden, one thing is crucial: knowing as much as possible about the tax deductions available in your canton. Because this is not so easy, we are here to help you. After all, not only on a first date, but also when it comes to tax advice, it's all about trust and asking the right questions. Let's talk and save taxes together.
And just like that, at least the financial burden weighs a little less heavily...
