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Who we help · Self-employed

Financial advice for self-employed expats in Switzerland

Sole proprietorship or GmbH, mandatory AHV registration, VAT threshold, no pillar 2 by default - the Swiss self-employed setup has more moving parts than most expats expect. We help you get the structure right from day one.

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In short

Self-employed expats in Switzerland must register with their cantonal AHV compensation office (Ausgleichskasse) to be recognised as 'selbständigerwerbend', pay AHV/IV/EO contributions on net profit (around 10% as of 2025), register for VAT once turnover crosses CHF 100'000, and arrange their own occupational pension. The big advantage: as a self-employed person without a pillar 2 pension fund, you can deduct up to 20% of net earned income into pillar 3a (capped at roughly CHF 36'288 as of 2025) - one of the most powerful tax shelters in Switzerland.

What you face

What self-employed expats have to figure out

  1. 01

    Getting recognised as self-employed

    Being self-employed in Switzerland is not a choice you tick on a form - the AHV compensation office decides, based on multiple clients, own infrastructure and entrepreneurial risk. A single client looks like disguised employment and gets refused.

  2. 02

    Sole proprietorship vs GmbH/AG

    Einzelfirma is cheap and fast but mixes personal and business risk and pays AHV on full profit. A GmbH or AG separates liability, lets you draw a salary plus dividends, and unlocks pillar 2 - but costs more to run and triggers double taxation on profits.

  3. 03

    VAT (MWST) and the CHF 100'000 threshold

    Annual turnover above CHF 100'000 requires VAT registration. Below it you can register voluntarily, which often pays off if your clients are VAT-registered businesses and you have material input VAT.

  4. 04

    Pension: pillar 2 gap and the 'big 3a'

    Without an employer there is no automatic pillar 2. You can join a pillar 2 foundation for the self-employed, or - more commonly - use the enlarged pillar 3a deduction (up to ~20% of net income, capped around CHF 36'288 as of 2025) to build retirement capital tax-efficiently.

  5. 05

    Income smoothing and tax instalments

    Self-employed income is volatile and Swiss tax is paid on provisional instalments. We help you forecast realistically, set aside the right amounts each quarter, and avoid the typical year-two cash-flow shock.

  6. 06

    Loss of cover: sickness, accident, parental leave

    An employee in Switzerland has accident insurance, sick-pay continuation and maternity allowance largely covered. As a freelancer, these are your problem - daily-allowance insurance (Krankentaggeld) and accident cover need to be arranged deliberately.

  7. 07

    First Swiss tax return

    You file a normal tax return with a self-employment income statement (Erfolgsrechnung). Bookkeeping standards, depreciation, home-office deductions and business-meal rules are all worth doing right from year one.

Free first call

Get your self-employed setup right in year one

In a 30-minute call we map your AHV status, sole-proprietor vs GmbH choice, VAT decision and the right pillar 3a strategy - so you stop overpaying tax and underbuilding your pension.

Book a free self-employed consultation →
How we help

How we help self-employed expats

Taxes & pension

Big-3a strategy, optional pillar 2 for the self-employed, VAT setup and a tax-return process that survives audit.

Plan Swiss tax and pillar 3a as self-employed

Investments & savings

Long-term portfolio for an irregular income - emergency cash buffer, pillar 3a invested for the long haul, taxable account for surplus.

Build an investment plan around freelance income

Health insurance

KVG / LAMal plus the supplementary covers an employee gets by default - daily-allowance (Krankentaggeld), accident cover and sensible private hospital cover.

Compare health & daily-allowance cover as a freelancer

Finance & mortgage

Banks treat self-employed borrowers differently - usually they want 2-3 years of audited accounts. We help structure income and equity to clear the affordability hurdle.

Plan a mortgage as a self-employed expat
Why self-employed expats work with us
~20%
of net income deductible into pillar 3a (as of 2025)
100%
Independent - no in-house products
4 langs
Advice in EN, DE, IT and FR
CHF 0
First consultation - no obligation
How we work

How we work with self-employed clients

A clear three-step process that fits around an irregular workload.

1 · Free discovery call

30 minutes on video. We map your activity, AHV status, turnover and the highest-impact tax and pension decisions for your first or next year.

2 · Your freelancer roadmap

A written plan covering legal form, VAT, pillar 3a strategy, protection and a realistic forecast of tax instalments - in plain English.

3 · Implementation together

We help you execute - 3a opening, daily-allowance insurance, bookkeeping setup, mortgage paperwork - and check in once a year as your business changes.

Tools

Run the numbers yourself

Calculators are estimates for planning, not formal tax or investment advice.

Pension gap

Estimate how much your enlarged pillar 3a needs to fill the missing pillar 2 over your working life.

Open calculator

Swiss salary calculator

Useful as a benchmark - what a comparable employee would net, so you can price your day-rate against employed peers.

Open calculator →

Mortgage check

Sanity-check what a Swiss bank would lend you based on declared self-employed income.

Open calculator →

Health insurance premium comparison

Compare KVG / LAMal premiums by canton, age, deductible and model.

Open calculator →
Ask us anything

Ask a freelancer-specific question

Type your question about AHV recognition, VAT, pillar 3a or pricing as a self-employed expat. A real Hello Expats advisor reads every message and replies personally - usually within one working day.

FAQ

Self-employed questions we hear most often

How do I get recognised as self-employed in Switzerland?
You apply to your cantonal AHV compensation office (Ausgleichskasse). They look for several clients, own infrastructure, the ability to set your own prices and real entrepreneurial risk. If they refuse, your client has to put you on payroll or you need to incorporate a GmbH. As of 2025 the practice has become stricter, especially for IT and consulting freelancers with a single main client.
How much can I deduct into pillar 3a as self-employed?
If you have no pillar 2 pension fund, you can deduct up to 20% of net earned income into pillar 3a, capped at CHF 36'288 as of 2025. If you do have a pillar 2 (because you joined a foundation for the self-employed or your GmbH provides one), you fall back to the 'small' 3a limit of CHF 7'258. The big 3a is one of the most powerful tax shelters in the Swiss system.
Sole proprietorship or GmbH - which is better?
It depends on profit, liability and pension goals. Below roughly CHF 100'000-150'000 of stable annual profit, an Einzelfirma is usually simpler and avoids double taxation. Above that, a GmbH starts to win: salary plus dividend planning, real pillar 2, limited liability and a cleaner separation of business and personal finances. The break-even is very canton-specific - we model both before you decide.
When do I have to register for VAT?
VAT (MWST) registration is mandatory once worldwide turnover exceeds CHF 100'000 per year. Below that, registration is voluntary - and often worthwhile if your clients are themselves VAT-registered Swiss or EU businesses and you have meaningful input VAT to reclaim on equipment, software or office costs.
What about sickness, accident and parental leave as a freelancer?
These are largely your responsibility. Accident cover, daily-allowance sickness insurance (Krankentaggeld) and life/disability protection are usually arranged privately. Self-employed mothers are entitled to maternity allowance via AHV (around 80% of average earned income for 14 weeks, capped) - but only if AHV recognition is in place. We typically recommend reviewing this stack at the same time as the pension and tax setup.
Can I get a Swiss mortgage as a freelancer?
Yes, but most banks want 2-3 years of audited or signed accounts and apply a haircut to declared income. Equity rules are the same as for employees - 20% minimum, at least 10% from outside pillar 2 - but affordability stress tests can be tougher. Planning the application well in advance, with clean books, makes a real difference.
Related guides

Keep reading

Next step

Let's design your Swiss freelance setup

A 30-minute call with an independent Hello Expats advisor - no obligation, no fees. We look at your AHV status, legal form, VAT, pillar 3a and protection in one conversation.

Book a free self-employed consultation →