Ticino is an attractive economic hub thanks to its moderate taxation on corporate profits and personal incomes, as well as a tax authority that is attentive to specific needs. For innovative companies, our taxation ranks among the most favorable in Switzerland.
The taxation reflects Switzerland's federal structure, with taxes being collected at each administrative level: federal, cantonal, and municipal. A single tax return is sufficient to assess the taxpayer's status across all three administrative levels.
The Canton of Ticino offers attractive tax rates tailored to the needs of the economy. Corporate income tax starts at 14%, a competitive rate compared to other Swiss cantons and international destinations.
For individuals, tax rates are also highly appealing when compared to other regions. For example, a married couple with two children earning CHF 200,000 is subjected to an income tax rate starting at 21%, while for a single person, the rate starts at 23.5%. Wealth taxes in Ticino are moderate if compared to the other Cantons. Additionally, with a minimum participation of 10% in the capital of a public limited company, a limited liability company, or a cooperative, partial taxation of capital income is applied. Inheritance and gift taxes are exempt between spouses and direct descendants. Finally, under certain conditions, foreign residents in Ticino with unlimited tax liability may request a taxation based on expenditure.
The legislative system is characterized by exceptional transparency and simplicity, partly due to the limited number of laws governing the matter. A unique feature of the Swiss federal system is the accessibility and responsiveness of the public administration, which enables a direct and collaborative relationship with the tax authorities, who act as the company’s primary advisors.
Innovative businesses can benefit from additional tax deductions thanks to new tools introduced with the 2020 tax reform.
The patent box (privileged taxation of profits derived from patents and similar rights), with deductions of up to 90%, and an additional R&D cost deduction of up to 50%, can result in a maximum reduction of taxable profits by 70%. This leads to an effective tax rate of 9.76%, making it one of the most advantageous in Switzerland.
Ticino is also one of the most fiscally attractive cantons for startups. Young companies that meet the innovation requirements set by the cantonal tax law regulation can take advantage of a range of tax incentives. Additionally, individuals living in the Canton who invest (purchase of equity or shares) in innovative startups based in Ticino benefit from a favorable tax treatment.
