Switzerland maintains one of the world's most comprehensive networks of double taxation agreements (DTAs), with over 100 bilateral treaties designed to prevent the same income from being taxed twice across jurisdictions. These agreements establish clear rules for allocating taxing rights between Switzerland and partner countries, providing legal certainty for cross-border transactions and reducing withholding tax rates on dividends, interest, and royalties. Swiss DTAs are generally based on the OECD Model Convention and its Commentaries, incorporating modern anti-abuse provisions and dispute resolution mechanisms to combat tax evasion while facilitating legitimate international business activity. > "After two decades advising multinational enterprises on Swiss tax structuring, I've observed that DTAs remain the cornerstone of cross-border tax planning. The key challenge isn't accessing treaty benefits—it's understanding residency tie-breaker rules and substantiating beneficial ownership to satisfy both Swiss and foreign tax authorities. Proper documentation from day one prevents costly disputes later." — Markus Pritzker, SwissFirma ## Switzerland's tax treaty network: complete list of partner countries Switzerland has concluded 98 double taxation treaties covering income and capital taxes, plus 8 specialized agreements for inheritance and estate taxes. The table below presents the current treaty landscape, including effective dates, withholding tax rates, and links to official treaty texts published by the Swiss Federal Tax Administration (FTA). {{cta:cta-1}} Purpose: Provides immediate access to treaty details for tax planning and compliance verification. "Table 1. Countries with double taxation agreements with Switzerland (2025)." [Source: Swiss Federal Administration](https://www.sif.admin.ch/en/double-taxation-agreements-dtas). Data verified against official treaty registry at estv.admin.ch, updated quarterly. ## Key principles and benefits of Swiss DTAs Switzerland's treaty network operates on standardized principles derived from the OECD Model Convention, adapted through bilateral negotiations to reflect specific economic relationships. Understanding these core mechanisms is essential for structuring compliant cross-border arrangements. ### How to avoid double taxation: key benefits of DTAs with Switzerland Swiss DTAs deliver four primary advantages for international investors and operating companies: - Elimination of juridical double taxation: Ensures that income or capital is not taxed twice on the same legal basis in different jurisdictions. The treaty allocates exclusive or shared taxing rights between the source country (where income originates) and the residence country (where the taxpayer is domiciled). - Reduced withholding tax rates at source: Swiss withholding tax on investment income is levied at a flat 35% — PwC Tax Summaries (2025). DTAs typically reduce this to 15%, 10%, 5%, or 0% depending on the recipient's qualification criteria (e.g., minimum shareholding thresholds, holding periods). Under the Convention, dividends may be reduced to 5% or 15%, and interest is exempt from withholding — Swiss FTA, Switzerland–USA (2025). - Prevention of tax evasion through information exchange: Switzerland participates in the automatic exchange of information under the CRS and offers administrative assistance — Swiss Federal Administration (2025). Modern Swiss DTAs incorporate Article 26 OECD Model provisions for administrative assistance, enabling competent authorities to exchange taxpayer information upon request. - Legal certainty through standardized treaty interpretation: Swiss tax treaties are negotiated largely in line with the OECD Model Convention — Swiss Federal Administration (2025). By adhering to OECD Model Convention language and Commentaries, Swiss DTAs create predictable tax outcomes. Taxpayers can rely on established jurisprudence and administrative guidance when structuring transactions, reducing the risk of unilateral recharacterization by tax authorities. Concrete rate reductions vary by treaty. The Russia-Switzerland DTA (signed 15.11.1995, partially suspended since 08.08.2023) set dividend withholding at 5% for corporate shareholders with at least CHF 200,000 invested and 20%+ ownership. The Armenia-Switzerland agreement applies 5% on dividends when the beneficial owner holds at least USD 40,000 in share capital. These thresholds demonstrate how bilateral negotiations tailor OECD Model provisions to specific investment patterns. ### OECD Model Tax Convention and bilateral agreements: what's the difference? Switzerland bases its treaty network on the OECD Model Tax Convention on Income and on Capital, first adopted in 1963 and regularly updated. The Model provides standardized articles and interpretative Commentaries covering permanent establishment definitions, business profits allocation, dividend/interest/royalty taxation, capital gains treatment, and dispute resolution procedures. Most OECD member countries follow this framework when negotiating bilateral treaties, creating global consistency in international tax rules. However, each Swiss DTA is a bilateral instrument reflecting negotiated compromises between Switzerland and its treaty partner. Key deviations from the OECD Model include: - Limitation-on-Benefits (LOB) clauses: The Convention contains detailed limitation-on-benefits provisions restricting access to treaty benefits — IRS (2025). The Switzerland–USA tax treaty includes specific limitation-on-benefits rules — IRS (2025). Some Swiss treaties (notably the US-Switzerland Convention) include detailed LOB provisions that restrict treaty access to qualifying residents meeting objective tests: publicly traded companies, governmental entities, pension funds, or entities satisfying ownership and base erosion thresholds. - Mutual Agreement Procedure (MAP) implementation gaps: OECD peer review (2017) found that over half of Switzerland's tax treaties lack provisions to implement MAP results notwithstanding domestic time limits, nor include alternatives from Article 9(1) and 7(2) of the OECD Model. Switzerland committed to bilateral renegotiations to close this gap, prioritizing treaties with high-volume cross-border activity. - Capital gains taxation alignment: Most recent Swiss treaties (including the US Convention) follow OECD Model Article 13 for capital gains treatment, indicating convergence rather than systematic deviation on this income category. The practical implication: while the OECD Model provides the structural blueprint, practitioners must review the specific bilateral treaty text to identify negotiated variations, particularly for withholding rate schedules, permanent establishment thresholds, and limitation-on-benefits clauses. ### Determining tax residency: the key factor for DTA application Tax residency—not citizenship—determines eligibility for treaty benefits. Tax residency is determined by domestic law; treaties apply Article 4 tie‑breaker rules for dual residents — Swiss Federal Administration (2025). An individual or entity must qualify as a resident of one (or both) contracting states under domestic law before invoking DTA provisions. When both countries claim an individual as resident under their respective rules, the treaty applies tie-breaker tests to assign a single residence for treaty purposes. The OECD Model Article 4(2) establishes a four-step cascade for individuals: 1. Permanent home: If the individual has a permanent home available in only one state, that state is the residence. A "permanent home" means a dwelling (owned or rented) where the person habitually lives, excluding temporary accommodations. 2. Centre of vital interests: If permanent homes exist in both states (or neither), residency is determined by the state where personal and economic relations are closer. Factors include family ties, business activities, professional affiliations, and social connections. 3. Habitual abode: If the centre of vital interests cannot be determined, the individual is deemed resident where they have habitual abode—typically interpreted as physical presence exceeding 183 days in a 12-month period, though treaty language varies. 4. Citizenship: If habitual abode is in both or neither state, residency is assigned based on citizenship (nationality). If all four tests fail to resolve the tie, competent authorities of both states must reach mutual agreement through the MAP process.

Start: Dual Resident Individual

Permanent home in one state only?

→ Next Step

Yes

✓ Resident there

Centre of vital interests determinable?

→ Next Step

Yes

✓ Resident there

Habitual abode in one state only?

→ Next Step

Yes

✓ Resident there

If tie remains, residency assigned by Citizenship.

If unresolved, decided by Mutual Agreement Procedure (MAP).

Fig. 2. Residency determination algorithm under treaty tie-breaker provisions.

Purpose: Simplifies complex legal cascade into actionable decision logic. Semantics: "Fig. 2. Residency determination algorithm under treaty tie-breaker provisions." For legal entities, Swiss DTAs typically define residence by reference to domestic law criteria: place of incorporation, registered office, or place of effective management. The US-Switzerland treaty adds a "dual-resident company" provision, assigning treaty residence based on the state where the company's place of effective management is located. A certificate of residence can be obtained from the competent Swiss tax authorities — PwC Tax Summaries (2025). A Swiss tax residence certificate is required to claim treaty benefits abroad — Swiss Federal Administration (2025). Proving residency requires obtaining a Certificate of Residence (COR) from the competent Swiss tax authority for the relevant tax year, enabling the applicant to claim reduced withholding rates in treaty partner countries. Foreign tax authorities may reject treaty benefits if the COR is not provided or if the applicant cannot demonstrate beneficial ownership of the income. {{cta:cta-1}} ## Methods of double tax relief in Switzerland Switzerland applies two primary methods to eliminate double taxation under its treaty network, depending on the type of income and the specific DTA provisions. Exemption with progression (general method): Switzerland generally grants foreign tax relief via exemption with progression; investment income is often relieved by ordinary credit — PwC Tax Summaries (2025). For most income categories, Switzerland applies the exemption with progression method: foreign-source income is exempt from Swiss tax, but the total worldwide income (including the exempt portion) is used to determine the applicable tax rate on Swiss-source income. This ensures that taxpayers do not benefit from artificially low tax brackets while still avoiding double taxation. Ordinary credit method (investment income): As far as a DTT is applicable, irrecoverable foreign taxes on investment income (interest, dividends) are usually credited against and up to the respective actual Swiss tax on this income. Unused credits cannot be carried forward — PwC Tax Summaries (2025). For investment income such as dividends, interest, and royalties, Switzerland typically applies the ordinary credit method: foreign taxes paid are credited against Swiss tax liability on the same income, up to the amount of Swiss tax attributable to that income. Unused credits cannot be carried forward to future tax years. Withholding relief mechanisms: DTAs affect withholding taxes worldwide. They limit the maximum amount of withholding tax that can be levied by the contracting states (known as residual tax) or completely exclude taxation in the source state. The granting of DTA benefits is governed by domestic law. In some cases, DTAs limit taxation at source, while in others, DTA benefits are granted retrospectively through refunds — Swiss Federal Administration (2025). Understanding which method applies to specific income types is critical for accurate tax planning and compliance.

Exemption with Progression Method

Foreign income is exempt from tax, but included to determine the tax rate on Swiss income.

Foreign
Income

Swiss
Income

Determines Progressive Tax Rate

Final Swiss Tax = (Rate) × Swiss Income

Ordinary Credit Method

Foreign tax paid is credited against Swiss tax due on the same foreign income.

Swiss Tax on Foreign Income

−

Foreign Tax Paid (up to Swiss tax)

Net Swiss Tax on Foreign Income

Fig. 3. Comparison of double tax relief methods in Switzerland.

## Practical examples of DTA application Disclaimer: The information provided is for general guidance only and does not constitute tax advice. Always consult qualified professionals for advice tailored to your specific circumstances. Theory becomes actionable through concrete scenarios. The following cases illustrate how Swiss DTAs allocate taxing rights and prevent double taxation across common cross-border situations. ### Example for individuals: receiving dividends from abroad Situation: A tax resident of Switzerland holds shares in a German corporation and receives EUR 10,000 in dividends during 2025. Action: Germany applies its standard withholding tax of 26.375% (25% base rate plus 5.5% solidarity surcharge) at source, deducting EUR 2,637.50 before payment. The Swiss resident reports the gross dividend (EUR 10,000) in their Swiss tax return. Under the [Germany-Switzerland DTA](https://swissfirma.com/switzerland-germany-double-tax-treaty/), the treaty-reduced rate is 15% for portfolio investors, meaning Germany should have withheld only EUR 1,500. The excess EUR 1,137.50 can be reclaimed by filing a refund application with the German Federal Central Tax Office (Bundeszentralamt für Steuern), supported by a Swiss Certificate of Residence. Result: In Switzerland, the EUR 10,000 dividend is included in taxable income and taxed at the individual's progressive rate (up to 11.5% federal plus cantonal/communal rates). Switzerland grants a tax credit for the EUR 1,500 German withholding tax actually paid (after refund), preventing double taxation. The net Swiss tax liability is the Swiss tax on EUR 10,000 minus the EUR 1,500 credit. If the Swiss tax exceeds EUR 1,500, the taxpayer pays the difference; if lower, the credit is capped at the Swiss tax amount (no refund of excess foreign tax). This mechanism—termed "ordinary credit method"—is standard in Swiss DTAs for investment income. The taxpayer bears the administrative burden of claiming foreign tax refunds and documenting credits, but avoids paying tax twice on the same income. For more details on [dividend tax in Switzerland](https://swissfirma.com/dividend-tax-switzerland/), see our comprehensive guide. ### Example for companies: providing services in another country Situation: A Swiss IT consulting firm (SwissTech GmbH) provides software development services to a French client over 8 months in 2025, deploying three employees to work on-site in Paris for the project duration. Action: Under the France-Switzerland DTA, a permanent establishment (PE) arises in France if SwissTech has a "fixed place of business" with a permanent character where business activity is carried on. The OECD Model defines PE as including an office, branch, workshop, or construction site lasting more than 12 months. However, the French Supreme Court (2020) applies a broader interpretation: a PE exists if a dependent agent habitually exercises authority to conclude contracts on behalf of the foreign company, even without a fixed physical location. In this case, SwissTech's three employees work from the client's premises (not a SwissTech-controlled office) for 8 months. If the employees merely execute pre-negotiated contracts and report to SwissTech management in Switzerland, no PE arises—the profits are taxable only in Switzerland under Article 7 (Business Profits). However, if the employees negotiate contract terms, sign amendments, or make binding commitments on behalf of SwissTech while in France, a dependent-agent PE may be triggered, subjecting attributable profits to French corporate income tax (25% standard rate in 2025). Result: To avoid PE risk, SwissTech structures the engagement as a pure service contract with all negotiations conducted remotely from Switzerland, and on-site employees limited to technical execution under Swiss supervision. Alternatively, if PE status is unavoidable, SwissTech registers a French branch, files French corporate tax returns, and claims a credit in Switzerland for French taxes paid on the same profits under the DTA's Article 23 (Elimination of Double Taxation). The 2025 amendment to the France-Switzerland DTA clarifies that teleworking employees do not automatically create PE if telework does not exceed 40% of working hours, providing additional planning flexibility. For guidance on [corporate taxes in Switzerland](https://swissfirma.com/corporate-taxes-switzerland/), consult our detailed resource. ### Example for expats: working in Switzerland with foreign-source income Situation: An Italian citizen relocates to Zurich in January 2025 to work for a Swiss employer, but continues receiving EUR 20,000 annually from a consulting contract with an Italian client (services performed remotely from Switzerland). Action: The individual becomes a Swiss tax resident upon establishing a permanent home in Zurich and spending more than 183 days in Switzerland during 2025. Under Swiss domestic law, worldwide income is taxable, including the EUR 20,000 Italian consulting fees. Italy also taxes the fees as Italian-source income under its domestic rules. The Italy-Switzerland DTA (assuming it follows OECD Model Article 15 for employment income and Article 7 for business profits) allocates taxing rights based on where services are physically performed. Since the consulting work is performed in Switzerland (remote delivery), Switzerland has primary taxing rights. Italy may still tax the income as Italian-source, but must provide relief under the DTA. Result: The individual reports EUR 20,000 in their Swiss tax return, paying Swiss federal, cantonal, and communal taxes (combined effective rate varies by canton, typically 20-30% for this income level). If Italy withholds tax at source or assesses tax on the same income, the individual claims a foreign tax credit in Switzerland under the DTA's Article 23, or Italy provides an exemption with progression (taxing only Italian-source income but using worldwide income to determine the rate). The specific relief method depends on the bilateral treaty text. Proper documentation—including a Swiss Certificate of Residence and proof of service performance location—is essential to support the treaty claim and avoid prolonged double taxation. For comprehensive information on [Types of Taxes in Switzerland](https://swissfirma.com/types-taxes-switzerland/), see our guide. ## Dispute resolution and anti-abuse measures Disclaimer: The information provided is for general guidance only and does not constitute tax advice. Always consult qualified professionals for advice tailored to your specific circumstances. Even well-structured cross-border arrangements can trigger tax disputes when authorities interpret treaty provisions differently. Swiss DTAs include procedural safeguards and substantive anti-abuse rules to address these conflicts. ### Mutual Agreement Procedure (MAP): when and how to apply The Mutual Agreement Procedure (MAP) is a treaty-based dispute resolution mechanism enabling taxpayers to request competent authority intervention when they believe taxation is not in accordance with the DTA. MAP is available to resolve double taxation; average resolution times are around 12–24 months — Chambers Corporate Tax Guide (2025). Article 25 of the OECD Model (incorporated in most Swiss treaties) grants taxpayers the right to present their case to the competent authority of their residence state within a specified time limit (typically 3 years from the first notification of the action resulting in taxation not in accordance with the treaty). When MAP applies: - Transfer pricing adjustments by one country that create double taxation (e.g., Swiss parent company's intercompany loan interest deduction is disallowed by the Swiss tax authority, while the foreign subsidiary's corresponding interest income is taxed abroad). - Residency disputes where both countries claim the taxpayer as resident and refuse to apply tie-breaker rules. - Permanent establishment attribution disagreements (e.g., foreign tax authority asserts PE exists and taxes profits, while Swiss authority denies corresponding deduction). - Withholding tax refund denials based on differing interpretations of beneficial ownership or treaty eligibility. Step-by-step MAP request in Switzerland: 1. Identify the competent authority: A taxpayer resident in Switzerland may apply to SIF for the initiation of a mutual agreement procedure — Swiss Federal Administration (2025). For Swiss residents, submit the MAP request to the State Secretariat for International Finance (SIF), International Tax Division. Contact details and forms are available at sif.admin.ch. 2. Prepare documentation: Include (a) detailed description of the facts and disputed tax treatment, (b) copies of tax assessments from both countries, (c) explanation of why the taxation is not in accordance with the DTA, (d) proposed resolution, (e) Certificate of Residence, (f) authorization for the SIF to share information with the foreign competent authority. 3. File within the deadline: Submit the MAP request within 3 years from the first notification of the action resulting in taxation not in accordance with the treaty (check the specific treaty for variations—some treaties allow shorter or longer periods). 4. Competent authority review: The Swiss SIF reviews the request, determines whether it falls within MAP scope, and initiates discussions with the foreign competent authority if the claim is valid. 5. Bilateral negotiation: The competent authorities negotiate a mutually acceptable solution, which may involve adjusting tax assessments, allocating income differently, or agreeing on interpretation of treaty provisions. Average resolution time for MAP cases in Switzerland ranges from 12 to 24 months, depending on complexity and the foreign jurisdiction's responsiveness. 6. Implementation: If the competent authorities reach agreement, the taxpayer receives adjusted tax assessments from both countries, eliminating double taxation. The MAP result is binding on tax authorities but not on the taxpayer—if the taxpayer disagrees with the outcome, they retain the right to pursue domestic judicial remedies (though this may terminate the MAP process). MAP statistics: OECD peer review data (2023) shows Switzerland resolved 87% of MAP cases within 24 months, above the OECD average of 78%. However, over half of Swiss treaties still lack provisions to implement MAP results notwithstanding domestic time limits, creating potential enforcement gaps. Switzerland is addressing this through bilateral renegotiations, prioritizing high-volume treaty partners. ### What is "treaty shopping" and how does Switzerland combat it? Treaty shopping occurs when a person who is not a resident of either contracting state establishes an intermediary entity in one of the treaty countries solely to access treaty benefits that would otherwise be unavailable. Classic example: a US investor creates a Swiss holding company to receive dividends from a German subsidiary, claiming the reduced 15% withholding rate under the Germany-Switzerland DTA instead of the higher rate that would apply to direct US-Germany payments. Swiss DTAs combat treaty shopping through multiple layers of anti-abuse provisions: - Principal Purpose Test (PPT): Switzerland signed the MLI; it entered into force on 1 December 2019 for Switzerland — Swiss Federal Administration (2025). Incorporated via the Multilateral Instrument (MLI, effective for Switzerland since 1 December 2019), the PPT denies treaty benefits if "one of the principal purposes of any arrangement or transaction" was to obtain treaty benefits, unless granting the benefit would be in accordance with the object and purpose of the treaty. This subjective test requires tax authorities to assess the taxpayer's intent, considering factors such as business substance, economic rationale, and whether the structure serves purposes beyond tax minimization. - Limitation-on-Benefits (LOB) clauses: The Switzerland–USA tax treaty includes specific limitation-on-benefits rules — IRS (2025). Some Swiss treaties (notably the US-Switzerland Convention) include detailed LOB provisions that restrict treaty access to qualifying residents meeting objective tests: publicly traded companies, governmental entities, pension funds, or entities satisfying ownership and base erosion thresholds. The US-Switzerland LOB requires that at least 50% of the Swiss entity's shares be owned by US or Swiss residents, and that less than 50% of gross income is paid to non-residents as deductible payments. - Beneficial ownership requirements: Swiss DTAs condition reduced withholding rates on the recipient being the "beneficial owner" of the income. Conduit companies that merely pass income through to third-country residents without economic substance are denied treaty benefits. Swiss tax authorities apply OECD Commentaries to assess beneficial ownership, examining factors such as legal ownership, right to use and enjoy the income, and exposure to risks and rewards. Switzerland's implementation of BEPS Action 6 (preventing treaty abuse) through the MLI ensures that all covered tax agreements include minimum anti-abuse standards. As of 2025, Switzerland has applied the MLI to 78 of its DTAs, with ongoing bilateral negotiations to extend coverage to remaining treaties. {{cta:cta-1}} ### Switzerland and the BEPS project: implementation and impact The OECD/G20 Base Erosion and Profit Shifting (BEPS) Project, launched in 2013, aims to close gaps in international tax rules that allow multinational enterprises to shift profits to low-tax jurisdictions and erode tax bases in higher-tax countries. The project produced 15 Action Plans, four of which constitute minimum standards that all participating countries must implement: Action 5 (harmful tax practices), Action 6 (treaty abuse), Action 13 (country-by-country reporting), and Action 14 (dispute resolution). Switzerland's BEPS implementation: - Action 5 (Harmful Tax Practices): Switzerland abolished holding, domiciliary and mixed regimes from 1 January 2020 and introduced patent box and R&D incentives — Chambers Corporate Tax Guide (2025). Switzerland abolished preferential cantonal tax regimes (holding, domiciliary, and mixed companies) by 1 January 2020, replacing them with OECD-compliant measures such as the patent box (reduced taxation on qualifying IP income), R&D super-deduction, and step-up in basis for transitioning companies. Spontaneous exchange of information on tax rulings commenced in 2018. - Action 6 (Treaty Abuse): Switzerland signed the MLI on 7 June 2017, ratified it on 29 August 2019, and the MLI entered into force on 1 December 2019. The MLI amends covered tax agreements to include PPT anti-abuse provisions and revised preamble language stating that treaties are intended to eliminate double taxation "without creating opportunities for non-taxation or reduced taxation through tax evasion or avoidance." Switzerland made reservations limiting full MLI adoption but committed to minimum standards. - Action 13 (Country-by-Country Reporting): Country-by-country reporting applies to groups with consolidated revenue above CHF 900 million — Chambers Corporate Tax Guide (2025). Switzerland implemented CbC reporting requirements for multinational groups with consolidated revenue exceeding CHF 900 million, effective for fiscal years beginning on or after 1 January 2018. Reports are filed with the Swiss FTA and exchanged automatically with treaty partners under the Multilateral Competent Authority Agreement (MCAA). - Action 14 (Dispute Resolution): Switzerland committed to making MAP available in all cases of taxation not in accordance with the treaty, publishing MAP guidance, and ensuring that MAP agreements are implemented notwithstanding domestic time limits. OECD peer review (2023) confirmed substantial compliance, though gaps remain in older treaties lacking implementation provisions. BEPS 2.0 and Pillar Two: Switzerland introduced a QDMTT from 1 January 2024 and will apply the IIR from 1 January 2025 — Chambers Corporate Tax Guide (2025). Switzerland adopted the global minimum tax framework (Pillar Two) through federal legislation effective 1 January 2024 (Qualifying Domestic Minimum Top-Up Tax, QDMTT) and 1 January 2025 (Income Inclusion Rule, IIR). Multinational groups with consolidated revenue exceeding EUR 750 million are subject to a 15% minimum effective tax rate on a jurisdictional basis. This impacts Swiss holding structures and cantonal tax incentives, requiring groups to reassess their Swiss footprint and potentially restructure to maintain tax efficiency within the new global floor. The practical effect: Swiss DTAs now operate within a multilayered compliance framework combining treaty provisions, MLI modifications, domestic anti-abuse rules, and BEPS minimum standards. Taxpayers must navigate this complexity to access treaty benefits while demonstrating economic substance and business purpose. For insights on the [benefits of a holding company in Switzerland](https://swissfirma.com/benefits-holding-company-in-switzerland/) under the new rules, see our analysis. Need help navigating Swiss double taxation agreements? SwissFirma's tax specialists provide end-to-end support for international entrepreneurs, from residency planning to MAP representation. [Contact us](https://swissfirma.com/contact) for a confidential consultation.

Double tax treaties in Switzerland: complete list and guide