Money and Taxes

Almost everyone in Switzerland has a bank account. Salaries are usually paid directly into the employee’s account. Many banks and PostFinance offer accounts for private individuals.

Opening an account is usually free of charge, but various fees may apply. Comparings offers is advisable since fees, interest rates and services differ between providers.

To open an account, you must present a valid passport or another official form of identification.

When you open a bank account, you usually receive a debit card (for example Debit Mastercard or Visa Debit). With this card you can withdraw cash from ATMs and pay in many shops. Debit cards can usually also be used abroad, but fees may apply depending on the bank.

Credit cards can be requested from different providers. Services and fees vary, so it is useful to compare offers. Credit cards can be used to pay in shops or online. However, withdrawing cash with a credit card is expensive, because high fees and interest are usually charged.

In Switzerland, the app "TWINT" is also very common. With TWINT you can pay with your smartphone, send money to other people or pay in online shops. Many shops, restaurants and parking meters accept TWINT. To use TWINT, download the app and connect it to your Swiss bank account or use the TWINT Prepaid app.

In many shops you can also pay contactlessly. To do this, you hold your card, smartphone or smartwatch close to the payment terminal. Mobile payment services such as Apple Pay, Google Pay, Samsung Pay or TWINT are widely used in Switzerland.

In Switzerland, bills are often sent as a QR invoice by post or email. There are different ways to pay a bill:

• E-banking: Many people pay bills using their bank’s e-banking service. The QR code can be scanned with a smartphone or computer.
• E-bill: Many bills can also be received and paid directly in e-banking. This system is called eBill.
• At the counter: Bills can also be paid at a post office or at a bank. However, fees are usually charged for this service.

Your bank or the post office can provide further information.

Payment options for recurring bills:

• Automatic debit (e.g. direct debit or Lastschriftverfahren): This option is suitable for recurring bills, for example for a mobile phone contract or health insurance. The amount is automatically taken from your account.
• Standing order: If the amount is always the same (for example rent), you can set up a standing order with your bank or the post office.

Bills always include a payment deadline. If the bill is not paid on time, this can have consequences, for example debt enforcement proceedings (a legal debt collection process).

In Switzerland, taxes are levied by the Confederation, the cantons, the municipalities, and the national churches (Landeskirchen).

The most important direct taxes are the income and the wealth taxes.

The most important direct taxes are income tax and wealth tax, which must be paid directly by taxpayers.

Indirect taxes include value-added tax, tobacco tax, and mineral oil tax. These taxes are already included in the price of goods and services.

Since many taxes are collected by the cantons and municipalities, the amount of direct tax varies considerably depending on where you live.

Links:

ch.ch / Further information

Pamphlet "The Swiss Tax System"

For newly arrived foreign nationals, income tax is deducted directly from their salary — this is called tax at source (Quellensteuer). The registration is normally handled by the employer.

The amount of tax depends on income, marital status (single, married, divorced), and the number of children. Any changes must be reported immediately.

Various deductions are possible under tax at source, for example for payments into the 3rd pillar, interest on debts, or high medical expenses.

Anyone with assets must declare them and pay taxes on them separately.

Further information on tax at source is available from the Kantonale Steuerverwaltung Zug (Cantonal Tax Administration Zug). Questions about wealth taxation can be answered by the tax office of your municipality of residence (Steueramt der Wohngemeinde).

Links:

Kantonale Steuerverwaltung / Contact and information (DE)

ch.ch / Further information

The following persons are taxed under the ordinary tax system:

• Swiss citizens
• Persons with a permanent residence permit (Permit C)
• Persons whose spouse has a permanent residence permit (Permit C) or a Swiss passport

They must complete a tax return and pay the taxes according to the tax bill. Taxes are not deducted directly from their salary.

Completing a tax return can be challenging. It is therefore advisable to seek support, especially the first time.

The tax office of the municipality of residence is responsible for ordinary taxation.

The Migration Office Zug (FMZ) offers support with completing simple tax returns for a fee.

Links:

FMZ / Information and Contact

Pamphlet "Guidelines for Persons Who Will Be Subject to Tax" (DE)

As of February 2021, natural and legal individuals who are subjet to taxation in the Canton of Zug are able to pay their taxes using the cryptocurrencies Bitcoin (BTC) and Etherum (ETH).

If a bill is not paid on time, the creditor will usually first send a reminder – often a first reminder and later a second one. However, creditors can also start debt enforcement proceedings (Betreibung) directly.

In this case, the debtor receives a payment order from the competent debt enforcement office (Betreibungsamt). Fees are charged for this procedure.

If the debtor believes that the claim is not justified, they can file an objection (Rechtsvorschlag) with the debt enforcement office.

Important: Debt enforcement can lead to the seizure of wages or valuable items. As soon as a payment order is issued, the debt enforcement is entered in the debt enforcement register (Betreibungsregister). The entry usually remains visible for five years, even if the debt is paid later.

Such entries can cause problems, for example when looking for a flat.

Links:

Kanton Zug / Further information (DE)

Anyone with financial concerns or debts can contact a debt counselling service (Schuldenberatungsstelle). These services offer professional advice. Counsellors review the financial situation and help find suitable solutions.

The organisation Caritas offers anonymous telephone counselling:
“SOS-Schulden” advice hotline, telephone 0800 708 708 (free of charge).

If necessary, callers are referred to other specialised services.

Triangel Beratung offers free and confidential advice.

Links:

Triangel Beratung / Contact and information (DE)

In Switzerland there are many second-hand shops called “Brockis”. You can buy used items at a low price there.

People also sell used items at flea markets and clothes exchanges (Kleiderbörse).

Many people also buy and sell used items online. Sometimes items are given away for free. In Switzerland, websites such as tutti.ch, ricardo.ch and Facebook Marketplace are widely used.

When buying on these platforms, it is important to be careful, because there are sometimes fraud attempts.

Links: 

Brockisearch.ch / List of thrift shops in Canton Zug (DE)

Kindex / List of markets and thrift shops with children's items (DE)

People with limited financial means can benefit from discounts on sports, cultural, and educational activities through the KulturLegi card offered by Caritas Zentralschweiz.

The KulturLegi card can be applied for at Caritas, which also provides information and checks whether you are eligible.

Links:

Caritas Zentralschweiz / Contact and information (DE)

People with a low income can shop for food and daily products at reduced prices in Caritas-Markets. 

A special card is required to shop at the market. Caritas checks eligibility and provides further information.

There is a local Caritas-Market in Baar.

Links:

Caritas Switzerland / Store locations (DE)

People who do not have enough money to cover their living costs may be entitled to state support. This includes:

• Reductions in health insurance premiums (Prämienverbilligung)
• Maternity allowance (Mutterschaftsbeiträge)
• Scholarships for education

In certain situations, individuals can apply for financial assistance from social insurance or from social assistance (Sozialhilfe).

Links:

AK Zug / Health care reductions (DE)

Kanton Zug / Maternity allowance (DE)

Kanton Zug / Educational grants