Complete Guide to Depreciation for Self-Employed in Switzerland

For self-employed professionals in Switzerland, understanding depreciation isn't just about compliance—it's about smart tax planning that can save you thousands of francs each year. Whether you've just purchased a new laptop for CHF 2,500 or invested CHF 35,000 in a vehicle, knowing how to depreciate these assets correctly can significantly impact your tax bill.

This guide breaks down everything you need to know about Swiss depreciation rates, methods, and strategies for the 2025/2026 tax year.

What is Depreciation and Why It Matters

Depreciation allows you to spread the cost of business assets over several years rather than taking the full expense hit in year one. This means:

• Lower taxable income spread across multiple years
• Better cash flow management through predictable deductions
• Tax optimization by matching expenses to revenue
• Compliance with Swiss tax regulations

As a self-employed person in Switzerland, you have more flexibility than corporations. In fact, from a Swiss tax law perspective, you're not legally forced to depreciate large purchases—in some situations, you can write them off immediately.

The Two Depreciation Methods Explained

Swiss tax authorities recognize two main depreciation methods. Understanding the difference is crucial for optimizing your tax strategy.

Declining Balance Method

This method calculates depreciation based on the asset's remaining book value each year.

How it works:

• Year 1: Apply rate to original purchase price
• Year 2: Apply rate to remaining value (original - Year 1 depreciation)
• Year 3: Apply rate to new remaining value
• Continue until fully depreciated

Example: Laptop for CHF 2,500

Using the maximum 40% rate for office equipment:

• Year 1: CHF 2,500 × 40% = CHF 1,000 depreciation (remaining: CHF 1,500)
• Year 2: CHF 1,500 × 40% = CHF 600 depreciation (remaining: CHF 900)
• Year 3: CHF 900 × 40% = CHF 360 depreciation (remaining: CHF 540)
• And so on...

Best for:

• Fast-depreciating assets (computers, electronics)
• When you want higher deductions early
• Assets that lose value quickly

Straight Line Method

This method calculates depreciation based on the original purchase price, providing equal deductions each year.

How it works:

• Apply the same percentage to the original cost every year
• Receive identical deduction amounts annually
• Much simpler to calculate and track

Example: Same laptop for CHF 2,500

Using 20% rate (half of declining balance):

• Year 1: CHF 2,500 × 20% = CHF 500
• Year 2: CHF 2,500 × 20% = CHF 500
• Year 3: CHF 2,500 × 20% = CHF 500
• Fully depreciated in 5 years

Best for:

• Buildings and long-term assets
• When you prefer predictable deductions
• Simpler record-keeping requirements

When Depreciation Starts and Ends

This is one of the most commonly misunderstood aspects of depreciation.

Depreciation Start Date

Key Rule: Depreciation starts on the acquisition date (when you purchase the asset), not when you first use it.

Important: The calculation is rounded to the nearest month.

Example:

• Asset purchased July 8th = 6 months of depreciation in that year
• Asset purchased July 20th = 5 months of depreciation in that year

Partial Year Depreciation

When you purchase an asset mid-year, you can only claim depreciation for the months you owned it.

Vehicle Example (CHF 30,000 purchased September 1st):

Declining Balance Method (40% rate):

• Full year depreciation: CHF 30,000 × 40% = CHF 12,000
• Partial year (4 months): CHF 12,000 × 4/12 = CHF 4,000

Straight Line Method (20% rate):

• Full year depreciation: CHF 30,000 × 20% = CHF 6,000
• Partial year (4 months): CHF 6,000 × 4/12 = CHF 2,000

When Depreciation Ends

Depreciation ends when:

• The asset is fully depreciated (book value reaches zero or minimal salvage value)
• You sell or dispose of the asset
• The asset is no longer used for business purposes

This means in these cantons, you could potentially write off 80-100% of an asset's value immediately rather than depreciating it over several years.

How to Check Your Canton's Rules

Contact your cantonal tax authority or consult with a local tax professional. The rules can vary significantly, and knowing your canton's specific regulations can lead to substantial tax savings.

Special Depreciation Rules

Energy-Saving Investments

Switzerland incentivizes energy efficiency through accelerated depreciation:

Rule: Up to 50% of qualifying energy-efficient investments can be depreciated in the first two years.

What qualifies:

• Energy-efficient heating systems
• Solar panels
• Improved insulation
• Energy-saving windows
• Heat pumps

Example: CHF 20,000 solar panel installation

• Traditional depreciation: CHF 1,600/year (8% of CHF 20,000)
• Energy-saving rule: CHF 10,000 in Year 1 + CHF 10,000 in Year 2

Catch-Up Depreciation

Had a tough business year and didn't claim your full depreciation allowance? You can catch up later.

How it works: If you used lower depreciation rates (or none at all) during poor performance years, you can recoup the unused depreciation in subsequent profitable years.

Example:

• Year 1 (loss year): Claimed only 10% instead of 40% maximum
• Year 2 (profitable): Can claim the 30% you missed plus current year's 40%

This provides valuable flexibility for managing income across volatile business cycles.

Important: Stay consistent with your chosen method for similar asset types. Switching methods frequently can raise red flags with tax authorities.

Record-Keeping Requirements

Proper documentation is essential for depreciation claims.

What to Keep:

Essential documents:

• Original purchase invoices with dates
• Proof of payment
• Asset descriptions and specifications
• Depreciation schedule showing yearly calculations
• Records of any sales or disposals

Digital tracking: Modern accounting software can automate depreciation tracking, ensuring accuracy and simplifying tax filing. Magic Heidi, for example, automatically categorizes expenses and tracks depreciation schedules for all your business assets.

Depreciation Schedule Format:

Asset: [Description]
Purchase Date: [Date]
Purchase Price: CHF [Amount]
Method: [Declining Balance/Straight Line]
Rate: [%]

Year | Beginning Value | Depreciation | Ending Value
2025 | CHF X,XXX | CHF XXX | CHF X,XXX
2026 | CHF X,XXX | CHF XXX | CHF X,XXX

Last updated: February 2026. Swiss tax regulations may change. For complex situations or high-value assets, consult with a qualified Swiss tax professional. This guide provides general information and should not be considered specific tax advice for your individual circumstances.