Loans and Taxes in Switzerland: What Is Tax-Deductible?
Taxes and loans — a topic that many Swiss people deal with but rarely fully understand. Can you deduct loan interest from taxes? What applies to business loans? And how is income from crowdlending investments taxed? This article provides clear, practical answers.
Debt Interest on Personal Loans
Debt interest is interest you pay on debts — including interest on a [personal loan at Cashare](/kredit-beantragen/privatkredit). In Switzerland, debt interest can be deducted from taxable income under certain conditions.
#### The Basic Rule in Swiss Tax Law
Debt interest is deductible up to the level of capital income plus a flat-rate supplement of CHF 50,000.
Formula: > Deductible debt interest = capital income + CHF 50,000
In practice, most private individuals can fully deduct their debt interest, as the CHF 50,000 limit is rarely exceeded.
#### What Is Deductible?
Deductible: - Interest on consumer loans (personal loan, car loan) - Mortgage interest - Credit card revolving interest
Not deductible: - Amortisation amounts (the repayment of capital itself) - Lender fees and commissions
Business Loans: Full Deductibility
For businesses and the self-employed, more generous rules apply. Interest on business loans is fully deductible as a business expense:
- [SME loans](/kredit-beantragen/kmu-kredit) at Cashare
- Working capital loans
- Investment loans
Crowdlending Returns for Investors
Those who invest in loans through Cashare as an [investor](/investieren/privatinvestoren) receive regular interest income. This income is taxable in Switzerland as ordinary income at the investor's personal marginal tax rate.
Note: Unlike bank interest, no withholding tax is deducted on crowdlending interest. You receive the full amount and must declare it yourself.
Conclusion: Know and Use Tax Advantages
Swiss tax law offers real advantages for borrowers: debt interest is generally fully deductible. For businesses, the advantages are even greater. As an investor, you must correctly declare your income — but the returns from crowdlending can be very worthwhile even after tax.