Tax optimization in Switzerland Moving will no longer be worthwhile for lottery winners in future
The Federal Council wants to make it more difficult to optimize taxes after winning large sums in the lottery and other money games. Until now, winners have been able to save taxes by moving to a more tax-efficient canton after winning.
05.12.2025, 11:01
05.12.2025, 11:17
SDA
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- The Federal Council is proposing that gambling winnings of CHF 1 million or more should in future be taxed at the place of residence at the time of winning and separately from other income.
- This is intended to prevent a tax-motivated change of residence and implement a parliamentary mandate.
- Winnings of up to one million francs and casino winnings will remain tax-free.
The state government submitted an amendment to the law for consultation on Friday. According to the draft, gambling winnings of one million francs or more should be taxed where the person concerned lived at the time of the win. Separate taxation from the person's other income is envisaged.
Under current law, gambling winnings are taxed in the canton in which the winner resides on December 31 of the year in question. This means that a move can be worthwhile.
With this proposal, the Federal Council is fulfilling a mandate from Parliament. Under direct federal tax, gambling winnings that exceed the exemption limit of just over one million francs will be taxed at the maximum rate, according to the draft. The cantons, in turn, are free to choose the applicable rate.
Lottery winnings of CHF 1,000,000 remain tax-free
According to the information, six cantons already apply separate taxation: Bern, Jura, Neuchâtel, Schwyz, Ticino and Valais. The federal government and the remaining cantons have so far included taxable gambling winnings in other income.
According to the communiqué, winnings from lotteries and online games up to around one million francs remain tax-free. The same applies to winnings in regulated casinos.
