Sole Trader vs GmbH: Tax Comparison Calculator Switzerland 2026
This calculator compares the total tax and social contribution burden of running a Swiss business as a sole trader (Einzelfirma) vs as a GmbH in 2026. Enter your expected annual profit and canton, and the tool models both structures side by side: as a sole trader you pay personal income tax on the full profit plus the self-employed AHV rate of 10.0%; as a GmbH the company pays roughly 12–18% corporate tax, you pay yourself a salary (with employer/employee AHV), and you take the rest as a dividend taxed at the personal partial-imputation rate. Example: at CHF 200,000 profit in Zurich, a sole trader pays ~CHF 75,000 in tax + AHV; a GmbH with a CHF 120,000 salary plus CHF 80,000 dividend pays ~CHF 62,000 — saving roughly CHF 13,000/year. Above ~CHF 150,000 profit a GmbH is usually tax-advantageous; below that the lower setup cost of a sole trader wins. Last updated June 2026.
How to use this calculator
- 01Enter your expected annual business profit in CHF.
- 02Choose your canton — corporate and personal tax rates vary widely.
- 03Select your marital status and number of children.
- 04Add any other household income (spouse salary, investments).
- 05Read the side-by-side burden and the recommended structure.
- •Sole trader setup cost is near zero; GmbH requires CHF 20,000 capital + CHF 3,000–6,000 fees.
- •Sole traders pay the full 10.0% self-employed AHV on profits.
- •Swiss corporate tax averages 12–18% depending on canton (Zug ~12%, Geneva ~14%).
- •GmbH dividends benefit from partial taxation (~50–70% of dividend is taxable).
- •Break-even where GmbH becomes cheaper is usually around CHF 150,000 annual profit.
Frequently asked questions
What is the minimum capital for a Swiss GmbH?
CHF 20,000, fully paid in. The capital can be used by the business after registration — it is not blocked.
When does a GmbH become more tax-efficient than a sole trader?
Typically around CHF 150,000 annual profit, depending on canton and personal situation. Below that the higher GmbH setup and admin cost usually outweighs the tax saving.
How is GmbH profit taxed in Switzerland?
First at the corporate level (12–18% combined federal + cantonal). Distributed profit (dividends) is then taxed personally with partial relief — usually only 50–70% of the dividend is added to taxable income.
Do sole traders need to register for VAT?
Yes, if Swiss turnover exceeds CHF 100,000 per year. The same threshold applies to GmbHs. Below that registration is optional.
Can I switch from sole trader to GmbH later?
Yes. You can transfer your business assets and liabilities to a newly founded GmbH (Umwandlung) — tax-neutral in most cases under article 19 DBG if conditions are met.
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