I'm a US citizen living and paying taxes in Switzerland. Must I still file a US tax return?

Yes. US citizens must file Form 1040 annually on worldwide income. Use Foreign Tax Credit (Form 1116) or Foreign Earned Income Exclusion (Form 2555) to reduce US tax; treaty cuts withholding but doesn’t remove filing duties.

How does the treaty affect my US 401(k) or IRA while living in Switzerland?

Generally taxable in the country of residence. As a US citizen in Switzerland, report distributions on both returns and use Form 1116 to credit Swiss tax. Roth IRA may be taxed by Switzerland despite US exclusion—plan before withdrawing.

Does the treaty cover Swiss wealth tax?

No. The treaty covers income taxes (and some capital taxes), not cantonal wealth tax. Wealth tax isn’t creditable against US income tax; it may be deductible on Schedule A, subject to the SALT cap.

What's more important: cantonal or federal Swiss tax law?

Both apply. Switzerland taxes at federal, cantonal, and municipal levels; total rates vary by canton. You can claim FTC for combined Swiss income taxes. Treaty limits apply to federal withholding.

How do I initiate the Mutual Agreement Procedure if double taxation persists?

Prepare returns, assessments, calculations, and correspondence; submit a MAP request to the Swiss competent authority (SIF, Double Taxation Treaties, Bundesgasse 3, 3003 Berne) or the US. Cases often take 18–36 months.

What happens if I hold dual US-Swiss citizenship?

You’re subject to US worldwide taxation and Swiss resident taxation. File in both countries, use Form 1116 to credit Swiss taxes, apply treaty tie-breaker rules if needed. The Savings Clause lets the US tax citizens regardless of treaty residence.

09.12.2025

US-Switzerland double tax treaty: complete guide for expats

In two decades of advising international clients, I've seen the US-Switzerland tax treaty save American expats hundreds of thousands in unnecessary tax payments

Taxes in Switzerland

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