Business TypeEinzelfirma · Sole trader · Indépendant

Freelancer and Einzelfirma in Switzerland

The simplest legal structure in Switzerland: no capital, no notary, no registration fees in most cases. But AHV is mandatory from day one, the CHF 100K VAT threshold applies, and personal liability is unlimited. This hub covers everything a sole trader (Einzelfirma) needs to stay compliant.

14.35%

AHV/IV/EO contribution rate (max)

CHF 100K

VAT mandatory threshold

No limit

Revenue you can earn unregistered

Varies

Income tax rate by canton

Verified against official sources in Switzerland. AHV-IV, ESTV, KMU Portal, and ZEFIX.

Status: current

CantonGeneva Zurich Zug Bern Basel Vaud

TopicVAT Company Formation AHV Employment Data Protection Annual Obligations

Business typeFreelancer GmbH AG Employer

Key Numbers

Freelancer compliance at a glance

14.35%

AHV/IV/EO contribution rate (max)

Sliding scale; full rate applies above CHF 60,500 net annual income.

CHF 100K

VAT mandatory threshold

Below this, registration is voluntary and sometimes advantageous.

No limit

Revenue you can earn unregistered

Below CHF 100K revenue you are not required to register in the Handelsregister.

Varies

Income tax rate by canton

Net income taxed at federal + cantonal + communal. Rates range ~12% (Zug) to over 40% (Geneva).

Legal Structure

Freelancer, what it is and what it means

A complete reference for the Freelancer structure in Switzerland, rights, obligations, and the things that catch founders off guard.

Structure and registration

Legal formEinzelfirma (sole proprietorship)

DE / FR / ITEinzelfirma / Raison individuelle / Ditta individuale

Minimum capitalNone

Notary requiredNo

Commercial register (HR)Mandatory above CHF 100K revenue; voluntary below

LiabilityUnlimited personal

Separate legal personalityNo, owner and business are one

Tax and social insurance

Income taxed asPersonal income (federal + cantonal + communal)

Corporate taxNot applicable

AHV/IV/EO (2024)14.35% of net income

AHV registrationMandatory from first CHF earned

ALV (unemployment)Not available to self-employed

BVG (2nd pillar pension)Voluntary, no mandatory Pillar 2

Mandatory auditNot required

Bookkeeping obligationSimplified (income/expense) below CHF 500K revenue

Watch Out

What every Freelancer in Switzerland must handle

These four areas cover the vast majority of compliance obligations. Each has hard deadlines and real penalties for non-compliance.

Unlimited personal liability is real

An Einzelfirma is not legally separate from its owner. A business debt, lawsuit, or insolvency reaches your personal assets including your home, car, and savings. If you carry meaningful liability risk (client work involving advice, errors, or third-party damage), incorporate as GmbH before that risk materialises.

AHV reclassifies fake-freelancers as employees

The cantonal compensation office decides who is genuinely self-employed. Single-client engagements with set hours and reported direction look like employment. Reclassification means your client owes employer contributions retroactively, plus penalties. Diversify clients and document independence.

Voluntary VAT can pay for itself

If your customers are mostly VAT-registered businesses (B2B), voluntary VAT registration lets you reclaim input tax on purchases without effectively raising your prices. For low-volume B2B freelancers with significant business expenses (software, equipment), the maths usually favours registering.

Pillar 3a deduction is your retirement plan

Without a mandatory BVG (Pillar 2), the only meaningful tax-deductible retirement vehicle for a freelancer is Pillar 3a, capped at CHF 35,280 for self-employed without Pillar 2 (2024). Failing to contribute is the largest missed tax saving in freelance Switzerland.

Related hubs

By topic or canton

The Freelancer structure is federal, but topics + canton shape how rules apply.

By topic

AHV / AVS VAT Employment Annual Obligations Data Protection

By canton

Geneva Zurich Zug Vaud Bern Basel-City

Articles

Guides for Freelancer

Genevaahv

AHV Self Employed Geneva: OCAS Guide for Freelancers

AHV self-employed Geneva: register with OCAS, contribute 10.0% of net income, plus frontalier and cross-border specifics for Swiss freelancers.

Verified6 min read

Countrywideahv

Self Employed Switzerland: AHV Contributions Guide

Self-employed in Switzerland: AHV contribution rates, registration with your cantonal Ausgleichskasse, the 10.0% rate, and minimum payments.

Verified6 min read

Genevavat

VAT Registration Geneva: Complete Guide for Businesses

VAT registration in Geneva (TVA): CHF 100,000 threshold, online application via SuisseTax, and what Geneva-based and foreign companies must do.

Verified6 min read

Countrywideahv

How to Become Self Employed in Switzerland

How to become self employed in Switzerland: gain AHV recognition, register with a compensation office, and meet the contribution and admin duties.

Verified5 min read

Baselvat

VAT Registration Basel: Thresholds and Steps

VAT registration Basel: when you must register, the CHF 100,000 turnover threshold, how to file with the Swiss FTA, and compliance tips for Basel firms.

Verified4 min read

Countrywidevat

VAT Registration Number Switzerland: Complete Guide

VAT registration number Switzerland: how to obtain it via ESTV, MWST registration thresholds, compliance steps, and rules for foreign businesses.

Verified5 min read

Bernahv

Self Employed Bern: AHV Registration Guide

Self employed Bern: how to gain AHV recognition, what contributions you owe, and the steps to register as a freelancer with the Bern compensation office.

Verified5 min read

Zurichvat