Banking, Money and Taxes in Switzerland

Banks in Switzerland have a reputation for stability and excellent customer service. While Switzerland is no longer the secretive tax haven of old, it remains a sophisticated and highly regarded banking hub. Managing your personal banking here is generally straightforward, although non-residents may find certain services come at a premium.

If you’re looking to start a business or invest long-term, Switzerland also offers a range of private and investment banking options tailored to high-net-worth individuals.

Money in Switzerland

Switzerland isn’t part of the European Union (EU) and retains its own currency, the Swiss franc (CHF), which is divided into 100 centimes (French), Rappen (German), or centesimi (Italian). The Swiss franc is one of the most stable currencies in the world, issued by the Swiss National Bank.

• Notes: CHF 10, CHF 20, CHF 50, CHF 100, CHF 200, and CHF 1000. The CHF 1000 note is one of the highest-value banknotes in circulation globally.
• Coins: 5 centimes, 10 centimes, 20 centimes, 50 centimes, CHF 1, CHF 2, and CHF 5. Prices are rounded to the nearest 5 centimes when paying in cash.

While cash remains a popular payment method, especially for smaller transactions, Switzerland is increasingly cashless. Contactless card payments and mobile payment apps are widely used for everyday purchases. ATMs are very available, and many dispense both Swiss francs and euros.

Banking in Switzerland

Banking in Switzerland is highly developed, and many major banks offer services in English, making it relatively easy for expats to set up and manage accounts. Swiss banks are renowned for careful financial management and strong security measures.

Most expats opt for large national banks like UBS and Credit Suisse, which provide extensive services and international accessibility. UBS has now acquired Credit Suisse, but both brands still operate in the local market under the UBS umbrella. PostFinance, the government-backed postal bank, is another reliable option, especially for new arrivals.

If you speak a local language, a cantonal bank may be a good choice. These regional banks are popular for their competitive fees and personalised service, although they generally cater to customers within their specific canton.

Opening a bank account

To open a bank account in Switzerland, you’ll usually need your passport, proof of Swiss address, and financial documents like your employment contract. Some banks require a minimum deposit or an in-person appointment.

You should check whether your employer has a preferred bank, as this may simplify the account opening process. Private banks may only accept clients via referral and often require a significant initial investment.

Many Swiss banks now offer online or video identification for account opening, making the process more convenient for expats.

ATMs and credit cards

ATMs (Bancomats) are widely available and often dispense both Swiss francs and euros. Using your own bank’s ATM is usually free, but withdrawals from other banks may incur a small fee.

Credit and debit cards are widely accepted, with Visa and Mastercard being the most common. American Express is accepted at many places, but not as universally. Digital payments like Apple Pay, Google Pay, and TWINT are increasingly popular, making Switzerland a very cashless-friendly country.

Taxes in Switzerland

Switzerland’s tax system is decentralised, with income tax levied at three levels: federal, cantonal, and communal. Your tax rate depends on where you live, with some cantons having significantly lower rates than others.

If you live or work in Switzerland for more than 30 days, you’ll be considered a tax resident. However, many expats benefit from Double Taxation Agreements, ensuring they aren’t taxed twice on the same income.

For most expats, taxes are deducted directly from their salary at source (Quellensteuer), which simplifies the process. If you earn above a certain threshold (CHF 120,000 in most cantons), you may need to file a tax return.

There’s also a wealth tax in Switzerland, although rates vary by canton. There is no nationwide capital gains tax on private investments, which makes Switzerland very attractive to investors.