Many people living in Switzerland are familiar with the fact that insurance premiums and interest earned on savings are eligible for tax deductions.
Most residents are also familiar with tax deductions available for interest paid on their mortgages.
What many people don’t know is that they can also deduct interest payments for consumer loans, including interest paid on credit card balances. Financial institutions compile these costs on an annual basis and you can submit the resulting statements to tax authorities as proof.
Interest payments on private loans, such as money borrowed from a friend in exchange for interest payments, must be clearly put down in writing in order to be eligible for this deduction.
Note that only the interest payments are tax deductible. The actual loan repayments (the amortization payments) cannot be deducted from taxes.
Payments made towards leasing contracts, such as auto leases, are not tax deductible. The same holds true for devaluations in the event that you purchase the leased object.
However, if you use a private loan rather than a lease to finance your acquisitions, you can claim tax deductions for the interest payments you make.
The moneyland.ch team
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