Expats living in Switzerland will be happy to know that the Swiss social security system has you well covered for retirement, as well as many situations that could impact your ability to work. The income tax system in Switzerland can also seem a little overwhelming at first, but don’t worry: InterNations is here to help.
It may come as a bit of shock for expats in Switzerland when they realize that their generous earnings are not entirely their own — their salary is subject to taxation and social security contributions. For employees the process is pretty straightforward: in the majority of cases your taxes and social security contributions will be automatically deducted from your salary. For self-employed expats, it can get a bit more complicated. The percentage of your earnings that will go towards tax and social security varies significantly, depending on your employment status, your gross income, and your canton. However, if you should find yourself unable to work or ready to retire, all the hassle will be worth it, as you’ll have a financial security blanket.