Switzerland RSU tax: What you need to know

If you work for an overseas company, you may receive employee benefits such as Restricted Stock Units (RSUs) from your employer. This can be a great benefit, but it’s also important to understand any tax implications linked to your RSUs.

In this helpful guide, we’ll be focusing on taxes for RSUs in Switzerland. We’ll look at whether Switzerland has RSU taxes and if so, who they affect, how they’re applied and what the rates are.

We’ll also show you how the Wise account could be the perfect solution for when it comes to selling your RSUs in a different currency. A Wise account lets you hold and convert between 40+ currencies including Swiss francs, for low fees* and mid-market exchange rates.

But first, a quick overview of what RSUs are and how they work.

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What are RSUs?

Restricted Stock Units (RSUs) are a type of employee compensation or benefit issued by a company. They are essentially a promise to transfer shares in the company to an employee according to a set schedule.

A company may want to offer them as an incentive for new employees, helping them secure the best talent. Or they may grant RSUs to staff on different occasions, such as on an annual basis, to reward long service or when the company reaches a particular milestone or performance-related target.

The key thing to note is that RSUs don’t have monetary value at the time they’re granted. After a set period of time known as a ‘vesting period’, the RSU will convert to actual stock which can be sold for a cash value.

Read more about the difference between RSUs and stock options here in our handy guide.

When RSUs are sold, there will almost certainly be tax implications. This is what we’ll be exploring below, specifically in relation to Switzerland’s RSU taxes. The country has its own tax laws, and it’s crucial to understand how they’ll affect you in this situation.

How are RSUs taxed in Switzerland?

Now, let’s dive into how RSUs are taxed in Switzerland, including tax rates and who is affected.

When are RSUs Taxed? (Vesting vs. Sale)

Under Switzerland’s tax laws, RSUs are not taxed at the time they are granted. This is the same as in many countries worldwide. They’re classed as ‘entitlements to employee shares’ during the vesting period.¹

Instead, RSUs only become taxable when they are vested - or at the end of the vesting period. This is when the RSUs are officially transferred over to you, and become shares. At this point, you’ll be liable for income tax and any other relevant taxes.¹

This works differently to income from stock options acquired privately. If you acquire stock options or RSUs through employment, any income you get from them is classed as employment income - and is therefore subject to income tax.

In many countries, you’ll also be liable for capital gains tax (CGT) on any profits you make when you actually sell the shares.

The good news is that Switzerland doesn’t have such a capital gains tax system relating to financial instruments and personal investments, so you shouldn’t have to pay CGT when you sell your stock. The country’s rules on CGT only really applies to investments in real estate.²

However, if you are still considered a tax resident in the UK, you may have to pay capital gains tax when selling stocks under the UK’s tax rules.

To understand which country’s rules apply and avoid double taxation, it’s a good idea to seek professional and personalised tax advice.

Breakdown of Income Tax, Capital Gains Tax, and Other Levies

When your RSUs vest, you may be liable for income tax based on their market value. This is because your RSUs and shares may be seen as supplementary employment income.

To give you an idea of what your tax bill is likely to be, you need to understand how income tax works in Switzerland.

It’s a little complicated, as tax-resident individuals are taxed on three different levels in the country. There are federal, cantonal and municipal income taxes, and rates can vary depending on where in the country you live and your personal circumstances.

Federal taxes are progressive, and there’s a tax-free personal allowance of up to 18,500 CHF in income per year. Above this, the rates (for an unmarried person) are:³

For cantonal and municipal taxes, you’ll need to check with the tax authorities in the area of Switzerland you live in.

Switzerland doesn’t levy capital gains tax on profits made from personal investments, so you shouldn’t have to pay any additional taxes or fees when you sell your shares.

But as we mentioned above, the only thing to check is whether you’re liable for CGT, income tax or other levies back in the UK.

Who is affected by RSU taxes in Switzerland?

The country’s rules on RSU taxes apply to anyone who needs to file an income tax return.

You’ll need to do this if any of the following apply during the tax year in question:³

• You’re a tax resident in Switzerland
• You’re a tax resident in the UK or another country but you earn income (such as from investments) in Switzerland.

Use Wise to save on unnecessary currency fees on your next share or RSU payout

After reading this, you should have a better idea of how tax on RSUs works in Switzerland - and how the country’s tax laws apply to you.

Key takeaways to remember:

• RSUs are only taxed when vested, not when granted
• You may have to pay income tax when your RSUs are vested
• You shouldn’t have to pay capital gains tax when selling shares in Switzerland
• It’s crucial to get professional tax advice to understand your tax obligations and avoid double taxation, especially if you’re a UK tax resident.

But it’s also important to think about the best way to manage share profits, dividends and other investment income. This is particularly crucial for those with global investments, where you’re earning returns in multiple currencies.

Without the right type of account or transfer service, you could end up losing out to high fees and poor exchange rates for currency conversion.

Wise is the ideal solution, helping you manage your money in 40+ currencies and convert between them whenever you need to.

Thanks to its low fees* and mid-market exchange rates, you could save a bundle on currency conversion fees. For an example of how it could benefit you, check out this guide to using Wise for RSU payouts in USD.

You can even get Wise account details in Swiss francs, so you can receive CHF payments for free.

Ready to make new investments? It’s easy to fund your portfolio or top up an account on a trading platform using your Wise account - which lets you securely send money worldwide in just a few clicks.

FAQs about RSU tax in Switzerland

Still have questions about RSU tax in Switzerland? Take a look below for a handful of commonly asked questions and answers that you may find useful.

How are stock dividends taxed in Switzerland?

Income from personal investments is generally not subject to capital gains tax in Switzerland, although it’s possible that you’ll still have to pay income tax on any investments you hold in the country.

There’s also something known as withholding tax, which applies to dividends and interest payments from Swiss stocks and bonds. This is currently levied at 35%. However, you may be able to claim full reimbursement of this tax when you submit a tax return and declare your securities.⁴

What is the tax treaty between the UK and Switzerland?

The UK and Switzerland have a double taxation treaty in place, which aims to prevent individuals from being taxed on the same income twice.

How to avoid double taxation on RSU in Switzerland?

If you live and work between two countries (i.e. the UK and Switzerland), there’s a risk that you end up paying tax on the same income in both jurisdictions. This is known as double taxation.

Tax can be complicated and can depend on your personal circumstances, so the best way to avoid double taxation on RSUs in Switzerland is to seek personalised advice from an overseas tax specialist.

This publication is provided for general information purposes and does not constitute legal, tax or other professional advice from Wise Payments Limited or its affiliates, and it is not intended as a substitute for obtaining advice from a tax advisor or any other professional.

Sources used:

Sources last checked on date: 04-Mar-2025