Switzerland’s State budget for 2025 is estimated at approximately 86.3 billion Swiss francs ($ 95.9 billion), a growth of 0.7% from 2024. The Government has planned measures to strengthen the country’s economy, including reforms to the tax system and VAT. The reforms are designed to adjust regulation for digital and international sectors and provide some simplifications for small and medium-sized companies. 

The Federal Government’s expert group has estimated Switzerland’s economic growth at 1.5% in 2025, with an improvement of 1.7% in 2026. 

The country’s tax burden 

Switzerland offers several tax benefits for foreign companies, highlighting its favorable and flexible tax system at the federal and cantonal level. Therefore, it is important to know better the tax burden in Switzerland for 2025. The federal corporate tax is 8.5%; however, cantons can set additional rates. These additional rates can result in a total tax burden ranging from 11.9% to 19.7%, depending on the canton.  

Regions such as Zug, Lucerne and Geneva are known for their low rates, which makes them attractive for foreign companies looking to optimize their profits. Additionally, some cantons offer tax breaks for new companies or businesses that add value. 

Additionally, multinationals will need to consider the Global Minimum Tax. In response to OECD rules for a fair distribution of profits and minimum taxation of large multinationals, since January 2024 Switzerland has applied a minimum tax rate of 15%. This measure applies for companies generating more than 750 million euros ($785.17 million) in global revenue. 

Agreements and privacy 

On the other hand, Switzerland has signed double taxation agreements with more than 100 countries, reducing the tax burden for multinational companies and simplifying the declaration of dividends. The complete list is available on the Swiss Federal Tax Administration’s website. 

While tax transparency is a priority, Switzerland continues to uphold significant confidentiality protections. This can be advantageous for companies seeking privacy in their operations, safeguarding them from external interference and ensuring the protection of banking information and intellectual property. 

Switzerland remains a key player in the business sector. Therefore, if you want to expand your multinational or fund to Switzerland, you can count on Auxadi to manage your accounting, payroll, and taxes in Switzerland.  

Auxadi can become your ideal partner. We offer a one stop shop value added outsourcing services in the areas of accounting and reporting, tax compliance, payroll management and representation services, among others.