In Switzerland, taxes are collected by three different bodies, namely the Confederation, the canton and the commune.
For natural persons, only real estate assets – located in certain cantons (for example, the canton of Vaud) – and the income relating to them (rental value) are taxable. All other income, as well as capital, remain taxable in the domicile of the taxpayer. However, the latter must be reported to the tax authorities in order to determine the overall rates of the various taxes, unless the owner agrees to be taxed at a flat rate, which may be advantageous at times.
The tax value of the property forms the basis for determining taxable assets (80% of the market value).
The rental value is equal to the amount the landlord would have to pay for the rental of an identical property. This forms the basis for income tax.
In addition to these direct taxes will be levied:
- A direct federal tax
- An annual property tax
- A tourist tax