Working as a freelancer

Working as a self-employed person in Switzerland offers many freedoms, but it also comes with a specific tax framework. Unlike an employee, a self-employed person is taxed on his or her net profits and can deduct a certain number of professional expenses. Optimising your tax position is therefore essential if you are to remain profitable. Here is a comprehensive and accessible guide to the legal solutions available to Swiss self-employed people to reduce their tax burden.

📊 1 Understanding how tax works for the self-employed

In Switzerland, the self-employed are taxed on their net income, i.e. their annual turnover less the professional expenses necessary for their activity. The tax is made up of :

  • Direct federal tax (IFD)

  • Cantonal and municipal tax (ICC)

  • Social security contributions (AVS/AI/APG)

These amounts can represent up to 35% to 40% of net income, depending on the canton and the level of income. It is therefore crucial to optimise each expense item.

📒 2. Deduction of business expenses

One of the main advantages of self-employed status is the possibility of deducting a wide range of business-related expenses. Here are the main deductions accepted by the tax authorities:

✅ Current expenses

  • Rent for business premises or share of home rent

  • Telephone, internet and electricity costs

  • Office supplies

  • Entertainment expenses (travel, business meals, client gifts)

  • Vehicle expenses (mileage or actual expenses)

  • Professional software, digital subscriptions

  • Depreciation of equipment (computer, printer, etc.)

✅ Insurance and pensions

  • 2nd pillar premiums (LPP if taken out)

  • 3rd pillar A contributions

  • Professional liability insurance, loss of earnings, cyber-risks

✅ Subcontracting and employees

Fees paid to freelancers or service providers may also be deducted, provided that the relevant receipts are supplied.

💡 Tip: keep clear accounts and archive all supporting documents. In the event of an audit, the authorities will demand proof.

🏠 3. Deductions if you work from home

If you work from home, you can deduct some of the costs associated with your home. This includes:

  • A proportion of the rent or mortgage interest

  • A proportion of electricity, maintenance or insurance costs

  • Office furniture (desk, ergonomic chair, etc.)

The key is to prove that the space is used exclusively for professional purposes. A pro rata calculation of the surface area is generally accepted.

🧾 4. Pension provision: a win-win strategy

🔹 3rd pillar A

Self-employed people can contribute up to CHF 35,280/year (in 2024 ) to Pillar 3a if they are not affiliated to a pension fund. This sum is fully deductible from taxable income, making it a powerful tax optimisation tool.

2nd pillar (optional)

A self-employed person can voluntarily join a pension fund. This not only provides protection against risks (disability, death), but also offers new opportunities for tax deductions (up to several tens of thousands of CHF depending on the situation).

📌 Example: A self-employed person with a net income of CHF 120,000 who contributes CHF 30,000 to the 3rd pillar reduces his tax base to CHF 90,000. This can represent up to CHF 10,000 in tax savings, depending on the canton.

🏦 5. Creating a Sàrl or SA: good or bad idea?

Depending on how your business develops, it may be worthwhile converting your sole proprietorship into a Sàrl (limited liability company) or SA (limited company). This step has major tax implications:

✅ Advantages

  • You pay yourself a fixed salary, which makes tax planning easier

  • Any remaining profits are taxed as corporation tax (IS), often at a lower rate

  • You can deduct more expenses (family salaries, management costs, vehicles)

  • Protection of your personal assets

❌ Disadvantages

  • Double taxation (income + dividends)

  • Higher set-up and management costs

  • Increased accounting obligations

Conversion is generally advisable from CHF 100,000 of stable net profit, or if you have larger-scale development projects.

📍 6. Cantonal specificities

Each Swiss canton applies its own scales and exemptions. Here are a few examples:

Canton of Vaud

  • Progressive cantonal tax that can exceed 15%.

  • Highly sensitive to the 3rd pillar deduction

  • Caution: AVS contributions proportional to 10% from CHF 58,800

Canton of Geneva

  • Heavy taxation on high incomes

  • Generous deductions for professional expenses if well justified

Canton of Zug

  • Very advantageous tax regime (combined rate of 10-15%)

  • Ideal for domiciling a limited liability company in the case of relocatable activities

Canton of Valais

  • Lighter taxation in the mountains than in the cities

  • Beware of strict controls on entertainment expenses

🧠 Tip: use a tax simulator or call in a fiduciary to optimise according to your canton.

🚗 7. Vehicle expenses: flat-rate or actual?

A self-employed person can deduct expenses relating to the use of their business vehicle. There are two methods:

  • Flat-rate mileage: approx. CHF 0.70/km, applicable if the vehicle is private but used for work purposes.

  • Actual method: depreciation, petrol, maintenance, leasing, insurance, etc.

It is advisable to keep a logbook if you opt for the actual method, especially if the vehicle is used for both private and business purposes.

📦 8. Anticipate your investments

At the end of the year, it can be useful toanticipate certain purchases or expenses in order to reduce taxable profits:

  • Replacing an ageing computer

  • Paying for an annual subscription in advance

  • Ordering equipment or tools

Be careful, however, not to buy unnecessarily. The authorities may disallow deductions deemed excessive or unnecessary.

📅 9. Stagger your income

If your income varies considerably from one year to the next, you can plan to :

  • Defer invoicing until January of the following year.

  • Spread expenses over the relevant financial years

This avoids jumping tax brackets.

📚 10. Good support

Using a trustee helps you to:

  • Avoid filing errors

  • Optimise your deductions without risking an adjustment

  • Delegate accounting and concentrate on your business.

Even for the small self-employed, tax advice can generate savings that outweigh the cost of the service.

✅ Conclusion

Being self-employed in Switzerland offers considerable scope for legally reducing your tax burden. By knowing the rules well, anticipating your decisions and using levers such as pension provision, business expenses or legal form, you can optimise your financial situation while remaining compliant. It is advisable to seek support in this process to make the most of the opportunities offered by the Swiss tax system.

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