Tax Tips for Americans in Switzerland

From detailed record keeping to how cantonal and municipal taxes may affect your U.S. taxes, check out these taxes tips to help answer some questions about U.S. taxes while living in Switzerland.

  1. Keeping records of taxes paid at all levels of government is crucial. Depending on where you live in Switzerland, the taxes you pay at the cantonal and municipal level may be very important for your U.S. tax return. Figuring out exactly what payments are important and WHEN they are important for U.S. taxes can be challenging and may be best left to your tax advisor.

  2. Your Pillar II pension is an important part of your U.S. tax return. The contributions you and your employer make to this account are included in your taxable income. However, when these same amounts are later withdrawn, they will not be subjected to U.S. tax again.

  3. Consult a U.S. tax advisor in advance before investing your savings in Switzerland. Certain insurance policies, annuity contracts, Pillar III pension investments, and mutual funds may not allow you to achieve your investment goals after taking U.S. taxes into account.