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Withholding tax in Switzerland 2026
Switzerland's signature withholding is the 35% anticipatory tax on Swiss dividends, bond interest and bank interest — designed to force disclosure, refundable in full to residents and down to treaty rates (usually 15% or less) for treaty-country residents.
Beyond that the system is light: no withholding on royalties, about 1% federal plus small cantonal rates on pensions, and 5% federal on directors' fees.
At a glance
- top rate
- 35% (dividends and interest, before refunds)
- entry band
- 0% on royalties
- tax year basis
- Taken when the payment is made
- filing deadline
- Refund claims via treaty forms or the Swiss return
- residency basis
- Swiss-source income of non-residents
- regime flag
- Foreign employees taxed via payroll withholding
Rates
Withholding on payments to non-residents (2026)
| Rate | Base | Applies to |
|---|---|---|
| 35% | Gross | Dividends from Swiss companies; Swiss bond interest; bank interest of CHF 200+ — treaty refunds typically leave 15% or less |
| 0% | — | Royalties — Switzerland levies no withholding on them |
| 0.8% – 7% federal + cantonal | Gross (after 20% expense allowance) | Artists, sportspeople and lecturers performing in Switzerland |
| 5% federal + 15%–20% cantonal | Gross | Directors' fees from Swiss companies |
| 1% federal + 5%–10% cantonal | Gross | Pensions paid abroad from Swiss employment |
| 3% federal + 10%–17% cantonal | Gross | Interest on loans secured by Swiss property |
Thresholds & allowances
- Treaty network100+ income tax treaties
Dividend residual usually 15%, often 0% on pension-fund and large corporate holdings; many treaties zero the interest withholding
Residency
Residency trigger
These rates cover non-residents' Swiss-source income; foreign workers living in Switzerland without the C permit are taxed on salaries via a separate payroll withholding at combined federal-cantonal rates.
Non-resident treatment
Refunds of the 35% require a treaty claim with proof of residence; automatic exchange of information now covers Swiss accounts, so hiding from the refund process buys nothing.
Notes
- The anticipatory tax is unusual in aiming at compliance rather than revenue — residents who declare get every franc back.
- Swiss salaries of genuine non-residents (e.g. cross-border commuters) are withheld at source; several border treaties override this.
- No Swiss withholding on royalties makes Switzerland popular for licensing structures — the treaty chart matters mainly for dividends and interest.
- Non-residents owning Swiss property pay cantonal income and wealth taxes on it by assessment, not withholding.
FAQ
How do I get the Swiss 35% withholding back?
Residents: declare the income in the annual return and the full 35% is credited. Non-residents: file a treaty refund claim — most treaties bring dividends down to 15% or less, and interest often to 0%.
Does Switzerland withhold tax on royalties?
No — 0% withholding on royalties paid abroad, regardless of treaty.
Figures: tax year 2026, compiled from public sources. Not tax advice.