Swiss withholding tax of 35 %: who pays it, who can get a refund

Swiss withholding tax is levied at a rate of 35% on returns from movable capital, primarily dividends and interest. The payer, such as the distributing company or bank, withholds and remits this tax to the state. A natural person domiciled in Switzerland can claim a refund, provided they accurately and spontaneously declare their income and the assets that generated it. For a person domiciled abroad, the tax is generally lost and constitutes a permanent liability, according to the Federal Tax Administration (FTA).

This page covers the mechanism, rate, and conditions for the refund for a Swiss resident and the general rule for a non-resident. It does not address the portion a French resident is entitled to recover under the tax treaty between France and Switzerland, nor the refund form, nor the specific rules of each canton. The detailed document from the Federal Tax Administration (FTA) that we cite describes the legislation as of January 1, 2024. The FTA page on withholding tax, updated on September 22, 2026, indicates the same rate of 35%, a refund to individuals issued by the cantons, an application to be submitted within three years, and, for individuals domiciled abroad, a tax that is generally lost.

What the tax hits

According to the Federal Tax Administration (FTA), the withholding tax "is levied on the return on movable capital (particularly on interest and dividends)." The rate is 35%: "It is withheld at a rate of 35% on returns on movable capital assets.".

The detailed document from the Federal Tax Administration (FTA) lists interest, dividends, profit-sharing, and annuities, as well as interest on bonds and bank deposits, among the income covered. We do not reproduce the complete list here; it can be found in the FTA document.

A small threshold for account interest

For interest on client assets, the Swiss Federal Tax Administration (FTA) specifies a limit: it is not subject to taxation if the interest amount does not exceed 200 Swiss francs per calendar year. The assets concerned and the details of the rule can be found in the document, from which we quote here only the phrase: "interest on client assets, if the interest amount does not exceed CHF 200 per calendar year.".

Who pays, specifically?

The Federal Tax Administration (FTA) states that "withholding tax is collected at source, that is, from the payer of the taxable benefit." The payer "will then deduct the amount in question from their payment." The recipient therefore receives a net amount, and "any agreement to the contrary is void": the payer and the recipient cannot agree to waive this withholding.

The AFC clarifies the function of the tax: it constitutes "essentially a means of combating tax fraud".

Reimbursement for a person domiciled in Switzerland

According to the Swiss Federal Tax Administration (FTA), the refund is available "to natural persons domiciled in Switzerland, provided, however, that they correctly and spontaneously declare" the relevant income. It is also available to other eligible parties, including legal entities headquartered in Switzerland that record the income. This page only deals with natural persons. Regarding interest, the FTA states that beneficiaries must declare the interest as regular income and the amount in their account as assets.

Two other rules govern the application.

• A three-year period. The right to reimbursement expires if the application is not submitted within three years of the expiry of the calendar year in which the benefit became due (AFC, ch. 7.1.1).
• Undeclared income. If income was not declared due to negligence, a refund is still possible provided that a subsequent declaration is made voluntarily or that the tax authorities add the income. The AFC text sets out this condition in more detail than our summary.

According to the AFC, reimbursements to individuals are made by the cantons, with applications submitted to the canton of residence. The specific rules for each canton are not detailed here.

A person domiciled abroad

The principle is harsh. For individuals domiciled abroad, "the withholding tax is, in principle, lost and constitutes a permanent liability." "Withholding tax" refers to the tax in the document.

The Swiss Federal Tax Administration (FTA) adds that "most double taxation agreements (DTAs) provide for the full or partial refund of taxes withheld at source." A DTA is a double taxation agreement. In other words, the fate of the withholding tax depends on the agreement between Switzerland and the country of residence, and the amount refunded varies from one agreement to another. This page does not provide figures for any agreement. For a French resident, the tax agreement between France and Switzerland should be checked; it is not discussed here.

Swiss withholding tax: a numerical example (fictitious profile)

Situation. A Swiss company pays a gross dividend of CHF 10,000 to Paul, a fictitious profile. We are examining two scenarios: Paul is domiciled in Switzerland, or he is domiciled in another country. He also holds a Swiss bank account that has earned CHF 180 in interest during the year.

Hypotheses. The dividend is gross, and withholding tax is deducted by the paying company. The account is Paul's only client asset at his bank and does not generate any other interest. The 200-franc rule is applied as stated above.

Issue. Paul wants to know what he is receiving and what he can take back.

Strategy. Apply the AFC rules: withholding of 35 % by the debtor, then reimbursement if Paul is domiciled in Switzerland and declares the income and the wealth that produced it.

Result.

The CHF 3,500 corresponds to 35 % of CHF 10,000. The actual reimbursement amount depends on Paul's declaration and the review of the application. Paul is a fictitious profile.

Swiss withholding tax: what changes depending on your situation

• Your home: In Switzerland, refunds are available to individuals who file a tax return; abroad, the general rule is the loss of tax.
• The applicable convention between Switzerland and your country of residence.
• The nature of the income: dividend, bond interest, account interest.
• The accuracy of your statement: income and assets declared on time.
• The expiry date of the service and the three-year period.
• The current version of the text: The detailed AFC document is dated January 1, 2024.

These points are examined on a case-by-case basis. No results are promised.