STEP Alpine Conference 2025

Switzerland's federal tax structure creates significant regional variation in corporate and personal taxation, offering businesses and individuals strategic planning flexibility. With effective corporate tax rates ranging from 11.9% to 20.5% and personal income tax rates varying between 22.2% and 43.2% across cantons, location choice becomes a critical factor in tax optimization.

Among the distinctive features of the Swiss tax system is a particular regime designed for affluent foreign individuals who relocate to Switzerland.

Switzerland's shift to individual taxation by 2032 will fundamentally reshape the country's lump-sum taxation regime for internationally mobile individuals. The reform removes the requirement that both spouses must qualify simultaneously for lump-sum taxation, creating new planning opportunities for mixed-status couples while introducing complexities around asset allocation and minimum tax thresholds.

On 8 March 2026, Swiss voters approved the Federal Act introducing individual taxation, with 54.3 % voting in favour. This marks a fundamental shift in the taxation of individuals: going forward, all persons...

The Swiss withholding tax is a pivotal aspect of Switzerland's taxation system, particularly for foreign investors. This tax is levied on various types of income originating in Switzerland...

The definition of a permanent establishment in Article 5(1) of the OECD Model Tax Convention remains unchanged. However, the Commentary now contains detailed guidance on when a home office, work performed in second...

As Switzerland's first QDMTT assessments arrive following the 30 June 2026 filing deadline, taxpayers face complex interpretive questions around the GloBE Model Rules. With no prior Swiss court rulings on Pillar Two matters, this analysis examines the procedural pathways and substantive grounds available for challenging disputed positions, from cantonal objections through federal administrative and supreme court appeals.

System change as of 2029: The imputed rental value will be abolished, and at the same time maintenance and energy-saving deductions for owner-occupiers will be eliminated. Value-preserving investments should therefore be carried out by the end of 2028.

For many years, there have been efforts to eliminate the unequal tax treatment of married and unmarried couples, commonly referred to as the “marriage penalty”. The inequality lies in the fact that, under current law, the income and assets of a married couple are aggregated for income and wealth tax purposes, respectively, whereas this is not the case for unmarried couples.

Generally, interest paid on loans are not subject to Swiss Withholding Tax ('WHT'). Interest on bonds and bank interest, however, are subject to 35% Swiss WHT

The regulatory environment in Switzerland to date continues to be investor-friendly for the following three main reasons: (i) limited investment restrictions (a notable exception being the Federal Law on Acquisition of Real Estate (the so-called Lex Koller)...

The FCPA enforcement pause ordered in February 2025 by President Trump is over. The new FCPA enforcement guidelines signal a more targeted enforcement approach by the DOJ, which may potentially be more vigorous than before...

On March 10 2017, the Federal Council of Switzerland opened a hearing procedure for the amendment of the Lex Koller, the law restricting the acquisition of real estate by persons abroad.

All of the standard transaction strategies to acquire portfolio companies are commonly used in Switzerland. We assume that regular leveraged buyouts have accounted for the majority of the transactions in recent years. In 2025, the total deal volume in the private equity sector remained stable...

Switzerland continues to be one of the leading jurisdictions for fintech innovation, offering a stable legal framework, a sophisticated financial market and a technology-neutral regulatory approach.

Generally, interest paid on loans are not subject to Swiss Withholding Tax ('WHT'). Interest on bonds and bank interest, however, are subject to 35% Swiss WHT

Bär & Karrer, a Swiss law firm, provides comprehensive legal and business solutions. Contact their Zurich office for expert assistance with legal advice, business inquiries, and professional services tailored to your needs.

The Swiss Federal Supreme Court has validated minimum wage regulations in Zurich and Winterthur, overturning lower court decisions and affirming that municipalities possess constitutional autonomy to establish local wage floors. With minimum wages of CHF 23.90 and CHF 23.00 per hour respectively now set to take effect, the ruling settles a key question about the division of legislative powers between cantonal and municipal authorities in Switzerland's federal system.

Medicinal products are products of chemical or biological origin which are intended or claimed to have a medicinal effect on the human organism, in particular in the diagnosis, prevention or treatment of diseases...

Swiss Banks and Swiss branch offices or representative offices of foreign banks are subject to prudential supervision by the Swiss Financial Market Supervisory Authority (FINMA).