DeductionsUpdated:
The short answer
Donations to organisations recognised as charitable by the Confederation or canton can be deducted up to a percentage of net income. Interest on private debts, such as mortgages or consumer loans, is also deductible within certain limits. Proof of the actual flow of payments and the recognised charitable status of the recipient organisation are always decisive. A complete list of debts is also important for the declaration of assets.
Requirements for the donation deduction
Contributions to legal entities domiciled in Switzerland that are exempt from tax on account of their public or charitable purposes are deductible. Donations to private individuals or non-recognised institutions are not deductible.
The deduction is limited to a certain share of net income, which is set annually. Smaller donations below a minimum amount are in some cases not taken into account.
A typical mistake is the assumption that every payment to an association automatically counts as a donation. What matters is whether the organisation is actually recognised as charitable and exempt from tax. This information can usually be found on the donation receipt or the organisation's website.
- Donations to tax-exempt charitable organisations
- Membership fees, provided they are shown as a donation
- Contributions to political parties in some cantons
Proof of donations
As a rule, an annual donation receipt from the organisation stating the total amount serves as proof. Many organisations send this confirmation automatically.
For smaller or recurring donations, it is also worth keeping bank statements or payment slips in addition, in case the tax administration has queries, especially for larger annual totals.
Deducting debt interest
Private debt interest, for example on mortgages, personal loans or credit card debts, can be deducted from taxable income within certain limits. The amortisation itself, i.e. the repayment of the debt, is not deductible; only the interest portion is.
For mortgage interest, the bank generally issues an annual interest statement, which you should enclose with your tax return or have ready.
If you have several loans, for example a mortgage and a separate consumer loan, you should show the interest separately for each debt. This makes the total deductible debt interest easy to trace and to reconcile with the bank documents.
Connection with debts and assets
Debts also reduce your taxable assets, which is why a complete and correct declaration is important. Private loans between private individuals must also be declared if interest is payable.
For larger private loan arrangements or more complex financing, a specialist can help to assess the tax implications correctly.
Distinction from sponsoring and consideration received
If you receive something in return for a contribution, for example admission, a gift or an advertising service, it is generally no longer a pure donation but partly a payment for services. Only the amount exceeding the value of what you receive in return counts as a deductible donation.
Such situations arise, for example, at charity events with an admission ticket. The organising body often indicates on the confirmation which portion counts as a donation for tax purposes.
Donations as part of estate planning
Anyone who regularly donates larger amounts can also take this into account as part of longer-term estate or wealth planning. It is worth spreading the annual maximum amounts over several years instead of making one large contribution in a single tax year.
This allows the donation deduction to be used optimally over several periods, provided the organisation accepts regular partial payments and confirms them accordingly.
Amortisation and mortgage models
With indirect amortisation via pillar 3a, the mortgage debt remains in place and the debt interest continues to be fully deductible, while the payment into pillar 3a is claimed separately as a pension provision deduction. With direct amortisation, the debt decreases and so does the future interest deduction.
Which model is more favourable for tax purposes depends on the individual situation and may change over the term of a mortgage. A periodic comparison is worthwhile, especially when a mortgage renewal is coming up.
Guarantees and joint debts
If you are liable for a debt jointly with another person, for example in the case of a joint loan or a guarantee, generally only the share of the debt and interest attributable to you is taken into account in your own tax return. A clear allocation between the persons involved is therefore important.
For joint and several debts, for example between spouses assessed separately or between co-owners of a property, it is advisable to record the allocation in writing so that both sides declare their shares consistently. If there is no such agreement, the tax authorities often base themselves on the ownership or participation shares, which can lead to unfavourable outcomes in the event of a dispute.
What you should have ready
- Donation receipts from the beneficiary organisations
- Interest statement from the bank for mortgages
- Overview of private loans and their interest
- Bank statements as supplementary proof
- Current overview of debts for the declaration of assets
Frequently asked questions
Sources
General information, not individual tax advice. Status: August 2026. The current guidelines of your canton and the official information of the tax authorities are decisive.
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