Self-Employment in Switzerland: Social Insurance, Taxes and VAT
What freelancers and sole traders must register, insure and set aside.
7 min read · Business & Freelance
Starting a business in Switzerland is straightforward, but social protection is your responsibility.
Registration
You must register with your Ausgleichskasse for AHV. Commercial registry entry is mandatory once turnover exceeds CHF 100,000. Sole proprietors have unlimited liability; a GmbH or AG limits it but needs capital and accounting.
Social contributions
The self-employed pay AHV/IV/EO at a sliding rate of about 5.4 % to 10 % depending on income, with no employer share. Pension fund membership is voluntary; without it you can use the large 3a limit (up to 20 % of net income, max CHF 36,288). Accident and income-loss insurance are voluntary and worth considering.
Example with default values. Open the calculator →
VAT
VAT registration is mandatory once annual turnover reaches CHF 100,000. Below that you may still opt in to reclaim input VAT. Standard rate 8.1 %, reduced 2.6 %. Small businesses can use flat-rate methods.
Cash planning
- Set aside 25–40 % of profit for taxes and social contributions.
- Create a buffer for slow months.
- Invoice on time and use late-payment terms (5 % default interest).
Pricing yourself
Do not copy an employee's salary: add holidays, sickness, social charges, insurance and unpaid admin time. Use the freelance rate calculator as a starting point.