Taxes
Switzerland — Tax: Double Tax Treaties
The Federal Tax Administration (ESTV) publishes Switzerland's double taxation agreements and the status of each on its tax-agreements page, along with the rules for claiming treaty relief on withholding tax. Treaty terms differ by partner country, including relief from the 35% Swiss withholding tax on dividends and interest and whether the agreement covers inheritance tax. The official pages did not give a count of agreements, so check the ESTV list for whether a treaty with your country is in force and what it covers.
Why this matters
Without treaty relief, income earned abroad (foreign employment, rental property, pensions) could be taxed twice — once by the source country and again by Switzerland on a worldwide basis — so confirming which treaty applies and its specific relief mechanism (credit vs. exemption) directly affects take-home income for anyone with cross-border earnings.
Key facts
- The ESTV publishes the list of Switzerland's double taxation agreements and their status.
- Treaty terms, including withholding-tax relief and inheritance-tax coverage, differ by partner country.
- Check the ESTV list for whether a treaty with your country is in force and what it covers.
Steps
- Identify the applicable treaty — Confirm whether Switzerland has a treaty with the relevant country and review its specific provisions — terms vary treaty to treaty.
- Apply the relief method — Determine whether the treaty uses the exemption or credit method for the income type in question.
- Resolve dual residency if applicable — Apply the treaty's tie-breaker tests if tax-resident in two countries simultaneously under domestic rules.
- Claim reduced withholding rates — File the relevant treaty relief form (e.g. Swiss Form 86/90 series) with ESTV to reclaim excess withholding tax.
Common mistakes
- Assuming a treaty covers inheritance tax — coverage varies by treaty.