Tax Return Switzerland: Avoid Common Mistakes

Tax Return Switzerland: Why Newcomers Need Special Attention

Filing a tax return in Switzerland is often a challenge for foreigners and newcomers. The Swiss tax system differs significantly from that in Slovakia, Czechia or other European countries. Additionally, many newcomers are unfamiliar with the new rules and deadlines – and this can lead to costly mistakes. Our advisor will support you in submitting your tax return safely and accurately.

Mistake 1: Incorrect or Incomplete Income Information

A common mistake is that newcomers do not declare all sources of income correctly. Many forget that in Switzerland, income from abroad (e.g. pension income from your home country, capital gains or rental income) must also be declared in the tax return. According to the Federal Tax Administration (ESTV), you must declare all worldwide income on estv.admin.ch, regardless of where it was earned.

Newcomers in particular often overlook the fact that bonus payments, commissions or secondary income must also be fully recorded. Incomplete information can result in additional payments, late payment interest and even fines. Our advisor will carefully review your documents to ensure nothing is missed.

Mistake 2: Not Making Optimal Use of Deductions

Many newcomers are not aware of all the deductions they are entitled to. In Switzerland, for example, you can claim costs for professional clothing, further training, retirement savings contributions (Pillar 3a) and even mortgage interest. Travel costs to work and insurance premiums are often also deductible – but only if properly documented.

Pillar 3a contributions are particularly important: You can contribute up to CHF 7,056 per year (2024) to a locked-in pension scheme and claim this as a deduction. This saves taxes and builds up retirement savings – a double benefit. If you overlook these deductions, you pay unnecessarily high taxes. Schedule a free consultation appointment so we can optimise all your deductions.

Mistake 3: Missing Deadlines and Filing Late

Each canton in Switzerland has different filing deadlines for the tax return – this confuses many newcomers. In most cantons, the deadline is 31 March of the following year, in some cantons it is also 30 June. If you miss this deadline, you risk late payment interest and a self-assessment procedure in which the canton assesses the tax return without your involvement.

It is even more critical if you do not file a tax return at all, even though you are required to do so. The authorities can treat this as tax evasion. Therefore, mark the deadline for the next year as early as December and plan ahead. Our advisor will remind you of all important dates.

Mistake 4: Forgetting or Incorrectly Declaring Social Security Contributions

Self-employed newcomers often forget that they must pay AHV, IV and EO contributions themselves – these can also be claimed as deductions. According to bsv.admin.ch, you can deduct half of these contributions without limit (maximum 50% of net earned income). This is a major tax advantage that many do not use.

Even employed newcomers make mistakes: they often forget that certain insurance premiums (for example, private accident insurance in addition to mandatory UVG) are tax-deductible. Collect all insurance receipts and discuss them with your advisor to ensure you do not lose any deductions.

Mistake 5: No Separation Between Private and Business Expenses

Many newcomers, particularly the self-employed and freelancers, keep poor records of their expenses. They mix private and business costs and therefore cannot claim all entitled deductions. This results in higher taxes than necessary. Home office costs, work materials, training expenses – all must be clearly separated and documented.

It is worthwhile to have a simple system from the outset: maintain an expense journal or use an app to record all business costs. Keep receipts and sort them monthly. This will save you a lot of time and hassle on tax return day – and your advisor will be able to claim all deductions without gaps.

Tax Return Switzerland: How Your Advisor Can Help You

As a newcomer or foreigner, you do not have to cope with everything alone. Our advisor knows the Swiss tax rules precisely and understands the special considerations affecting foreigners – such as withholding tax, double taxation agreements or the obligation to declare foreign assets. Together we will review your documents, optimise all deductions and ensure you meet the deadline.

On our website you can find out more about our services – from tax returns to pension planning to business start-ups. The first consultation is free. Contact us today and save yourself mistakes and money.