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Switzerland is divided into 26 different areas. Each area is called a canton. A canton is like a state in the United States. In the past, each canton had its own army and money.

26 Cantons

Switzerland is divided into 26 different areas called cantons. The cantons of Basel-Stadt, Basel-Landschaft, Appenzell-Innerrhoden, Appenzell-Ausserrhoden, Obwalden and Nidwalden are different from the others in one way. For historical reasons, their voting is counted differently in national elections.

26 Swiss Cantons

• The Canton of Zurich. You may know Zurich as an international metropolis, but it also happens to be the largest canton of Switzerland.
• The Canton of Berne.
• The Canton of Lucerne.
• The Canton of Uri.
• The Canton of Schwyz.
• The Canton of Obwalden.
• The Canton of Nidwalden.
• The Canton of Glarus.

Graubünden

Cantons

Six cantons, historically referred to as “half-cantons”, send only one deputy to the Council of States (upper house of the Federal Assembly). They are Obwalden, Nidwalden, Appenzell-Innerrhoden, Appenzell-Ausserrhoden, Basel-Stadt and Basel-Land.

Switzerland is divided into 26 sovereign cantons….Geography of Switzerland.

Originally Answered: Why is Switzerland so much more expensive than its surrounding countries? Because the standard of living and the wages are much higher. You pay more, which leads to people getting paid more, which leads to people being able to afford the prices.

The amazing mountains, heaps of lakes and beautiful villages make for the most beautiful scenery in Switzerland. These landscapes are considered to be what makes Switzerland the perfect destination for vacationing and exploring new cultures. The high-peak Alps and mountains make up to 62% of the country’s territory.

Living in Switzerland is expensive. However, there are some things in Switzerland that are cheaper than back in North America: travel, hiking, sin items, electronics, and Swiss products!

Taxes generally tend to be lower than in much of Europe. Swiss citizens and foreigners with a C permit do not have taxes automatically withheld from their pay checks and must complete a tax declaration form each year. The amount due is based on the amount earned as well as assets.

Average Salary / Switzerland. Average salary in Switzerland is 112,272 CHF per year. The most typical earning is 86,217 CHF.

In one of them, the highest observed tax rate amounts to 30%. Generally, we can conclude that the total personal income tax rate in Switzerland doesn’t exceed 40%. For example, residents of the canton Schwyz are subject to a maximum personal income tax rate of 22% (covering the federal, cantonal and municipal level).

Income tax is levied on a national, cantonal and municipal level. The amount of tax you pay, therefore, depends on where in Switzerland you live. If, for example, you live and work in Zürich, you pay taxes to the Zürich canton. If you work in Zürich but live in Basel, you pay taxes to the Basel canton.

On cantonal level, tax rates varies heavily, Obwalden adapted a 1.8% flat tax on all personal income following a cantonal referendum in 2007. In most cantons, the rate is proportional with a maximum rate of 6.5% in Bern, whereas in Zurich it was 13% and in Geneva 17.58-. 76% (depending upon taxes as single or jointly).

Tax at Source. If you are employed in Switzerland and have a Permit B (not a «C» settlement permit) you are liable for taxation at source (Quellensteuer), which is deducted directly from the salary by the employer at a standard rate depending on your income.

General deductions such as state and work pension contributions and invalidity insurance, medical insurance and life insurance premiums, childcare, charitable donations and interest paid on private debt, Social deductions for children, personal circumstances, persons in need of care, etc.

The statutory rate of Swiss WHT is 35%.

Swiss nationals pay their tax at the end of the year. Non-Swiss employees without a C permit have their tax contribution deducted each month from their pay at source directly by their employer. This tax is called “withholding tax”. The employer pays this tax directly to the Swiss tax authorities.

Withholding tax is refunded if you declare your assets and the revenue they produce in your tax return. In this way, the claim for a refund is triggered automatically. Usually the refund is set off against the amount due in cantonal tax, or is repaid to you.

If you’ve had too much withholding tax (WHT) deducted from your foreign dividends, you can often reclaim the overpayment. Doing so involves writing to the tax authorities in the country that the company is based in and asking for a refund.

People from abroad working in Switzerland have tax deducted directly from their income (tax at source). Foreigners who live in Switzerland and have a residence permit (permit C), however, need to declare their income and assets in a standard tax return.