Moving brings not only a new quality of life and fresh air, but unfortunately also costs. But the good news is: under certain conditions, you can deduct a portion of your moving expenses in Switzerland from your taxes. This can significantly reduce your tax burden and make the move financially more bearable. However, beware: the rules are clearly defined, and not every move qualifies for deductions. In Switzerland, moving costs can generally only be claimed for tax purposes if they are professionally related. Private moves, which occur for personal reasons such as family expansion or the desire for a nicer place to live, are part of general living expenses and are not deductible.
When is a move professionally related?
A move is considered professionally related if it is directly connected to your professional activity. This is the case, for example, if:
- Your employer changes location and you therefore have to move to continue your work.
- You change employers and the new workplace is so far away that a move becomes necessary to shorten the commute or to allow for a reasonable commuting time.
- Your commute is significantly shortened by the move and this represents a clear improvement in reasonableness (often a daily commute time saving of one hour or more is mentioned as a guideline, but this can vary depending on the canton).
- You have to move your residence to your workplace due to a residence obligation (e.g., for certain professions).
Important: The move must be a necessary consequence of the professional change. A voluntary move that only brings a slight improvement in the commute is generally not recognized as professionally related.
What moving expenses are deductible?
If your move is considered professionally related, you can claim various items in your tax return as advertising expenses or professional expenses. Deductible costs generally include:
- Travel and transport costs: This includes the costs for the moving truck, fuel, or the costs for a professional moving company.
- Costs for a moving company: The complete service from packing to transport and unpacking can be deductible.
- Rental costs for moving helpers: If you hire private helpers and pay them compensation (receipts may be required for this).
- Costs for craft work: If these are directly related to the move (e.g., disassembly and assembly of furniture or installation of lamps in the new apartment).
- Travel expenses for apartment hunting: Trips to view the new apartment can also be claimed.
- Costs for setting up a no-parking zone: The fees for the permit to reserve a parking space on moving day.
- Re-registration fees: Fees for re-registering with the municipality or changing your identity card.
- Costs for mail forwarding service: If you have your mail forwarded.
However, general living expenses, such as the cost of new furniture, carpets, curtains, or cleaning the old apartment (unless the cleaning is part of a moving package from the moving company and is professionally justified), are not deductible.
Flat-rate deductions vs. actual costs
In Switzerland, in some cantons, it is possible to claim moving costs as a flat rate, without having to provide proof for every single receipt. The amount of these flat rates varies depending on the canton and marital status and is regularly adjusted. This can be a simplification, especially if you organized the move yourself and not all receipts were collected.
Alternatively, you can deduct the actual costs. For this, it is absolutely necessary that you carefully keep all receipts, invoices, and bills related to your move and attach them to your tax return. If the actual costs exceed the flat rate, providing proof is worthwhile.
How to proceed:
- Collect receipts: Really keep every receipt and invoice that is related to your move.
- Document the reason for the motivation: Record why the move was professionally necessary (e.g., confirmation from the employer about a change of location, copy of the new employment contract, calculation of time saved on the commute).
- Fill out the tax return: Enter the deductible costs in the corresponding section of your tax return. This can usually be found under “Professional expenses,” “Travel expenses,” or “Other deductions”. In case of uncertainty, a tax advisor or the cantonal tax administration can help you.
- Observe information from the tax administration: Always inform yourself on the website of your canton of residence about the current and specific regulations for moving cost deductions, as these can vary.
A move is already complex enough. However, with the right preparation and knowledge of the tax deduction possibilities, you can alleviate some of the financial burden. A look at your canton’s tax legislation and collecting all receipts is essential for this.
Are you ready to smartly deduct your moving costs and save?