What deductions can I claim in my tax return as an expat?

As an expatriate in Switzerland, you have access to numerous tax deductions that can significantly reduce your tax burden. In addition to the general deductions available to all taxpayers, there are special expat deductions that apply only to seconded professionals. This guide systematically shows you all available deduction options.

Expat-Specific Deductions: Your Special Advantages

Definition: Who Qualifies as an Expatriate?

Executive employees and specialists who are temporarily seconded to Switzerland by their foreign employer qualify as expatriates.

Requirements for Expat Status:

• Secondment by foreign employer
• Temporary assignment (typically several years, no fixed upper limit)
• Executive position or specialist qualification
• Inbound: From abroad to Switzerland

Special Expat Deductions by Residency

For Expats with Residence Abroad (Weekly Residents):

• Necessary travel costs between home and host country
• Reasonable housing costs in Switzerland

For Expats with Residence in Switzerland:

• Necessary travel costs between home and host country
• Reasonable housing costs in Switzerland
• Relocation costs to Switzerland
• School costs for minor children

Expat Deductions in Detail

1. Travel Costs Home-Host Country

For Expats with Foreign Residence:

• Regular home trips: Costs for weekend/holiday travel
• Transportation: Flight, train, car (reasonable class)
• Frequency: According to professional necessity

For Expats with Swiss Residency:

• Outbound and return trips: At beginning and end of assignment
• Family included: Travel costs for spouse/children
• One-time costs: Non-regular home trips

2. Double Housing Costs

Requirements:

• Residence abroad permanently available
• No subletting during assignment
• Proof of parallel costs required

Reasonableness by Canton:

• Salary range tables: Many cantons have guidelines
• Foreign weekly residents: Lower housing costs recognized
• Swiss residents: Higher claims recognized

Flat Rate (Canton of Zurich):

• CHF 1,500 per month: If entitled to housing costs
• Instead of detailed accounting of travel and housing costs

3. Relocation Costs

Deductible Relocation Costs:

• Transport of household goods and furniture
• Packing and insurance
• Customs clearance and duties
• Direct costs of relocation

Not Deductible:

• Furnishing and new furniture
• Utility costs of new accommodation
• Costs for maintaining foreign residence

4. School Costs for Children

Requirements:

• Minor children of expat
• Native language not available at public schools
• Foreign-language private school required

Examples:

• German expat in Ticino: School costs deductible (no German instruction)
• German expat in Zurich: No school costs (German instruction available)
• English/Spanish expat: School costs usually deductible

Non-Deductible School Costs:

• Meal costs at school
• Transportation costs to school
• Childcare costs before/after classes

General Deductions for All Expats

Professional Expenses

As an expat, you often have higher professional expenses than local employees:

Flat-Rate Deduction for Other Professional Expenses:

• 3% of net salary: Standard flat rate
• Minimum CHF 2,000: Even with lower salary
• Maximum CHF 4,000: Without special proof
• Higher deductions: Possible with detailed documentation

Commuting Costs:

• Public transport season tickets: Fully deductible
• Private car: 70 cents/km (if necessary)
• Bicycle/E-bike: CHF 700 flat rate per year
• Maximum (federal tax): CHF 3,300
• Maximum (cantons): Varies (e.g., Zurich: no limit for public transport receipts)

Additional Meal Expenses:

• Main meal away from home: CHF 15 per meal
• With subsidy: CHF 7.50 per meal
• Maximum: CHF 3,200 or CHF 1,600 per year
• Proof: Workplace does not permit return home

Education and Training Costs

Particularly relevant for expats in career development:

Deductible Education Costs:

• Professional further education: After initial training
• Retraining: Career change
• Language courses: Professionally relevant languages
• Specialist courses: Industry-specific training

Limits:

• Federal tax: CHF 12,000 per year
• Cantonal limits: Vary (CHF 10,000-15,000)
• Self-paid costs: Employer may not pay

Pension Deductions

Pillar 3a (Tied Pension Provision):

• Employees with pension fund: CHF 7,258 (2025 & 2026)
• Self-employed without pension fund: 20% of net income, max. CHF 36,288
• New from 2026: Retroactive payment of missed contributions possible (for gaps from 2025)
• Requirement: AHV-liable earned income

Pension Fund Purchases:

• Voluntary purchases: Fully deductible
• Purchase potential: Shown on pension fund certificate
• Blocking period: 3 years for subsequent capital withdrawal
• Staggering: Tax-optimal over several years

Insurance Premiums

Deductible:

• Health insurance: Mandatory and supplementary insurance
• Accident insurance: Private supplement to mandatory
• Life insurance: With savings component (Pillar 3b)
• Legal protection insurance: Professionally relevant policies

Limits (Federal Tax 2025/2026):

• Single persons: CHF 1,700
• Married couples: CHF 3,500
• Without Pillar 3a/2nd Pillar contributions: +50% (CHF 2,550 or CHF 5,250)
• Per child/supported person: +CHF 700

Cantonal limits vary greatly (e.g., Zurich: CHF 2,600 / CHF 5,200)

Family Deductions for Expats

Child Deductions

• Per child: Fixed amount (varies by canton)
• Until adulthood: Or end of initial education
• Reference date principle: Circumstances as of December 31 relevant
• Examples: CHF 9,000 (Zurich), CHF 8,000 (Bern)

External Childcare Costs

Particularly relevant for working expat parents:

• Day care centers/nurseries: External care
• Childminders: Private care
• After-school care: School-supplementary care
• Maximum (federal tax): CHF 10,100 per child
• Cantonal: Highly variable (e.g., Zurich CHF 25,000, Bern CHF 8,000)

Dual-Income Deduction

• Both spouses employed: Deduction possible
• Varies by canton: CHF 3,000-8,000
• Minimum employment: Often 50% required for second earner

Maintenance Payments

• Alimony: To children or ex-partner
• Support: To needy relatives
• Court-ordered: Or voluntarily provided

Housing Cost Deductions

Ownership

• Mortgage interest: Fully deductible
• Maintenance costs: Value-preserving work
• Property taxes: Cantonal/municipal levies
• Management costs: External property management

Rental

• Rent: Normally not deductible
• Exception: Business-used portion of residence

Special Deductions for International Situation

Foreign Taxes

• Withholding tax in home country: For cross-border income
• Double taxation agreements: Credit possible
• Form DA-1: Required for credit

Wealth Management Costs

• Investment advice: Professional wealth management
• Custody and account fees: For securities investments
• Vault/safe rental: For valuables storage

Debt Interest

• Private loan interest: For consumption purposes (limited)
• Investment financing: For securities purchases
• Foreign mortgages: For real estate in home country

Health and Medical Costs

Deductible Medical Costs:

• Above franchise and deductible: Of health insurance
• Dental costs: Not covered by insurance
• Alternative medicine: Recognized healing methods
• Glasses/lenses: For medical necessity

Deductible Rule:

• 5% of net income: Must be exceeded
• Accumulation: Possible over several years
• Family costs: Aggregation allowed

Disability Deductions

• Helplessness deduction: For own disability
• Disability costs: Disability-related additional costs
• Support deduction: For supported disabled persons

Donations and Charitable Contributions

Deductible Donations:

• Charitable organizations: With tax exemption
• Cultural institutions: Theaters, museums, orchestras
• Educational institutions: Universities, schools
• Religious organizations: Recognized religious communities

Limits:

• Maximum: 20% of taxable income
• Swiss organizations: Generally only these
• Minimum amount: Usually CHF 100 per donation

Practical Implementation of Deductions

Documentation and Evidence

Expat-Specific Documents:

• Assignment contract: Proof of expat status
• Travel expense statements: Flights, hotel, transport
• Housing cost receipts: Rent, utilities for both residences
• School invoices: International schools
• Relocation invoice: Detailed cost breakdown

General Documents:

• Salary certificate: Basis for deduction calculation
• Insurance policies: Premium certificates
• Donation receipts: From recognized organizations
• Education/training: Course confirmations and invoices

Declaration on Salary Certificate

Expat Costs Reimbursed by Employer:

• Item 13.1.2: "Other actual expenses"
• Flat rates: Item 2.3 "Other salary benefits"
• In gross salary sum: Then deduct in tax return
• Expatriate ruling: Item 15 "Remarks"

Assessment Procedure

Withholding Tax Obligated:

• Subsequent Ordinary Assessment (NOV): For gross income over CHF 120,000
• Voluntary NOV application: For higher deductions
• Withholding tax recalculation: For incorrect rates

Ordinarily Assessed:

• Directly in tax return: Record all deductions
• Detailed breakdown: For extraordinary costs
• Document submission: At request of tax authority

Cantonal Peculiarities

Differences in Expat Regulations

• Reasonableness: Different evaluation standards
• Flat rates: Cantonally different limits
• Documentation requirements: Different documentation standards

Example of Cantonal Differences

Zurich:

• Expat-friendly: Detailed regulations
• High housing costs: Correspondingly higher deductions recognized
• International schools: Many recognized institutions
• Flat rate: CHF 1,500 per month possible

Zug:

• Low tax rates: Attractive for expats
• Generous interpretation: For expat costs
• Crypto Valley: Special regulations for blockchain expats

Optimization Strategies for Expats

Timing of Deductions

• Observe tax year: Payment date relevant
• Staggering: Distribute large expenses over years
• Year-end: Pillar 3a deposits by December 31

Combination of Different Deductions

• Expat costs + general deductions: Optimally combine
• Family: Consider all family members
• International coordination: Align with home country taxes

Professional Support

• Expat tax advisor: Specialized in international cases
• Employer support: HR department for expat services
• Ongoing assistance: Implement changes timely

Common Expat Errors with Deductions

Unused Opportunities

• Expat status not claimed: Special deductions missed
• Double housing costs overlooked: Significant savings possible
• International school costs: Not all expats use deduction
• Travel costs underestimated: Regular home trips add up

Documentation Errors

• Incomplete receipts: Deductions not recognized
• Incorrect categorization: Expat costs declared as normal expenses
• Timing problems: Expenses recorded in wrong tax year

Legal Pitfalls

• Change of residency: Effects on deduction entitlement
• Contract design: Influence on tax treatment
• Withholding tax vs. ordinary assessment: Right choice

Checklist: Optimize Expat Deductions

Check Expat-Specific Deductions

☐ Expat status qualified: Executive employee or specialist?
☐ Travel costs: Home-host country documented?
☐ Double housing costs: Foreign residence available?
☐ Relocation costs: Recorded for Swiss residency?
☐ School costs: International school required?

Maximize General Deductions

☐ Pillar 3a: Maximum amount deposited (CHF 7,258)?
☐ Pension fund: Purchase potential utilized?
☐ Professional expenses: All costs recorded?
☐ Training: Professional courses deducted?
☐ Family: All child deductions and care costs?
☐ Insurance: All premiums documented?

Complete Documentation

☐ All receipts collected: Systematic filing
☐ International documents: Translation if necessary
☐ Employer certificates: Expat status confirmed
☐ Salary certificate correct: Expat costs properly shown

Future Planning for Expats

Prepare for End of Assignment

• Return to home country: Tax implications
• Remain in Switzerland: Switch to ordinary assessment
• Pursue C permit: End of withholding tax
• Capital benefits: Optimize Pillar 3a and pension fund withdrawal

Long-Term Tax Planning

• Wealth accumulation: Swiss vs. international investments
• Real estate purchase: Tax advantages and disadvantages
• Family planning: Effects on deductions
• Career development: Income optimization

Conclusion: Optimize Expat Deductions

As an expat in Switzerland, you have unique tax advantages that go far beyond normal deduction options. The combination of:

Expat-Specific Deductions:

• Double housing costs: Often the largest item
• Travel costs: Regular home trips
• School costs: International education
• Relocation costs: One-time relocation expenses

Plus General Deductions:

• Pillar 3a: CHF 7,258 per year
• Professional expenses: Often higher than for local employees
• Training: International career development
• Family deductions: Children, care, spouse

Can lead to significant tax savings - often in the five-figure range per year.

Success Formula for Expats:

1. Use expat status: Exhaust all specific deductions
2. Document systematically: Complete receipt collection
3. Get professional advice: International tax complexity
4. Optimize regularly: Consider situation changes
5. Plan long-term: Prepare for end of assignment

Tax advantages are one of the most important financial aspects of an expat assignment. With the right strategy, you can significantly reduce your tax burden and benefit more from your Swiss adventure.