Holding company in Switzerland: cantonal tax, withholding tax and comparison with Andorra

At a glance

Switzerland does not have a single rate: federal tax is added to cantonal and municipal taxes. The effective rate therefore depends on the holding company's canton, and a low headline rate says nothing about the withholding tax on dividends.

Company taxation

Federal tax on profit is 8.5 %verified on 12/10/2026 of profit after tax. Cantonal and municipal taxes are added to this. According to PwC's 2026 comparison, the maximum effective rate is about 11.66 %verified on 12/10/2026 in Lucerne, now the lowest-taxed canton, and 11.71 %verified on 12/10/2026 in Zug, which traditionally held that position. Bern is among the most expensive cantons.

Dividends

A withholding tax of 35 %verified on 12/10/2026 applies at source to dividends distributed by a Swiss company. It can be reduced by a treaty or refunded in certain cases. A participation relief applies to dividends from a holding of at least 10 %verified on 12/10/2026 of the capital (or of profits and reserves), or with a market value of at least 1,000,000 CHFverified on 12/10/2026, with no minimum holding period. It is mandatory at both federal and cantonal level. For capital gains, the 10 %verified on 12/10/2026 threshold applies and the holding must have been held for at least 12 monthsverified on 12/10/2026. The relief takes the form of a proportional reduction of the tax: it can be diluted, for example when carried-forward losses are offset.

Who it is for

Switzerland suits structures that have real substance and a business link with the country, and that can absorb higher management costs. It is poorly suited to a stand-alone asset-holding company of a small entrepreneur.

Compared with Andorra

Andorra's effective rate is 10 %verified on 09/10/2026 across the whole country, wherever you are, and the participation exemption follows a direct logic. In Switzerland, the cost of substance and the withholding tax weigh on the picture; in exchange, the country offers an extensive treaty network and great banking credibility. See the holding company in Andorra.

For a French resident

The effective rate of some Swiss cantons comes close to the limit of the privileged tax regime: the comparison looks at the tax actually borne, and is made case by case.

To check

The figures on this page come from foreign firms and administrations, checked on 12 October 2026: they are dated in our database and must be confirmed with a local adviser before any decision. This page is a guidepost, not tax advice. The effective rates in your specific canton need to be confirmed, and the thresholds come from firm summaries (federal law, art. 69 and 70), not from the official text.

Other countries

Comparison of countries for a holding company, holding company in Andorra, Luxembourg, Netherlands, Malta. Test the Andorran conditions in the holding company simulator.