What special tax rules apply to expatriates under the Swiss Expatriates Ordinance?

Switzerland's Expatriates Ordinance (Expatriatenvergütungen, based on the BKSE circular and related federal guidance) provides a special deduction regime for employees temporarily assigned to Switzerland by a foreign employer. An expatriate in this context is someone who was sent from abroad, maintains a centre of life outside Switzerland, and is expected to return to their home country after the assignment.

Qualifying expatriates may deduct certain costs that ordinary residents cannot: reasonable one-time relocation costs on arrival and departure, school fees for children at foreign-language or international schools (which are not tax-deductible for normal residents), and accommodation costs if they maintain a home abroad. These deductions apply in addition to standard professional expense deductions.

The regime is available for a limited period, typically up to five years. Once an employee is considered permanently settled — indicated by moving family to Switzerland, selling the home abroad, or holding a C permit — the expatriate deductions lapse and ordinary tax rules apply. Eligibility is assessed by the cantonal authority and must be confirmed, ideally at the time of arrival. Not all cantons apply the rules identically, and the deduction amounts depend on actual documented costs.

This is general information only, not professional tax advice. Consult a qualified tax professional for your specific situation.