Healthcare Costs Tax Deductible?

Hello,

Question regarding taxes in Switzerland: Are healthcare costs tax deductible?

Kind regards

Although most healthcare costs in Switzerland are covered by compulsory health insurance, you may still end up spending a lot of money on healthcare out of your own pocket. This my be due to: a high deductible on your health insurance policy; the 10% coinsurance payment (capped at 700 francs per year); medically-prescribed dental work; the need for specific medicines which are not covered by obligatory health insurance; large ambulatory expenses; other medical expenses which are not covered by your health insurance policies.

It is important to know that, in addition to the tax deduction for combined insurance premiums, Swiss tax laws also allow you to deduct many medical expenses which are not covered by your health insurance. The prime requisite is that medical treatment was prescribed by a doctor and that you can provide the prescriptions along with receipts or invoices.

Even when you can provide necessary documents, you still cannot deduct all of you medical spending from your taxable income. When calculating Swiss federal taxes, you can deduct out-of-pocket medical expenses in excess of the equivalent of 5% of your total taxable income. The threshold for cantonal taxes varies depending on your canton of residence.

If you have very low income or very high healthcare costs during a tax year, deducting the eligible portion of expenses when filing your tax return can save you a lot of money.

Example: Your annual taxable income is 25,000 francs and you spend 2500 francs on out-of-pocket healthcare costs in a year (10% of your income).  So you have to pay federal tax on 1250 francs of your medical expenses (equal to 5% of your income), but you can deduct the remaining 1250 francs of healthcare expenses from your taxable income.

Best regards

Moneyguru (moneyland.ch)

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