Save Taxes as a Self-Employed Person: 10 Legal Tips for Sole Proprietors

As a sole proprietor, your business profit flows directly into your taxable income. Every franc you can legally deduct reduces your tax burden -- at federal, cantonal and municipal level simultaneously. Many self-employed people give away thousands of francs every year because they don't know all the deductions or fail to record receipts consistently. In this article, we show you 10 concrete strategies to legally save taxes as a sole proprietor in 2026.

011. Maximise Pillar 3a contributions

Pillar 3a is the most effective tax deduction for self-employed people. The contribution is fully deducted from taxable income -- at a marginal tax rate of 30%, you save 30 centimes in taxes for every franc paid in.

Self-employed people without a BVG pension fund benefit the most: at up to CHF 36,288 per year, the deduction is almost five times higher than for those with a pension fund. Find all the details in our article on pillar 3a for self-employed. The prerequisite is a corresponding net income from self-employment.

022. Record business expenses consistently

Every business-related expense reduces your taxable profit. The problem: many self-employed people forget to record expenses or throw away receipts. Especially with mixed-use costs, a business share can be claimed:

Important: the business share must be plausible and traceable. Document the calculation in writing -- for example: home office = 15 m² out of 75 m² flat = 20% rent share.

033. Plan depreciation strategically

Investments in business assets (laptop, furniture, vehicle) cannot be deducted in full immediately -- they must be depreciated over several years. The FTA (Federal Tax Administration) specifies maximum depreciation rates. Find all the details in our article on depreciation for the self-employed.

Declining balance vs. straight-line: With the declining balance method, the depreciation amount is higher in the early years (depreciation on the book value). This is especially worthwhile in high-income years, as you deduct more from taxable income when the marginal tax rate is high.

044. Calculate private use share correctly

If you also use business assets (e.g. a vehicle) privately, you must declare a private use share as income. Correct calculation prevents an adjustment by the tax office on one hand, and ensures you don't declare more than necessary on the other.

Business vehicle: flat rate or logbook

• Flat rate: 0.9% of the purchase price (excl. VAT) per month, minimum CHF 150/month. Example: vehicle CHF 30,000 -> private share CHF 270/month = CHF 3,240/year
• Logbook: Exact recording of all trips (date, route, purpose, km). The private share results from the ratio of private to business kilometres. More effort, but often cheaper if you drive little privately

055. Make pension fund buy-ins in good years

In years with above-average income, a voluntary buy-in to the pension fund is especially worthwhile. The entire buy-in amount is tax-deductible and immediately reduces your taxable income. This is particularly effective with progressive taxation: the higher the income, the more tax you save per franc of buy-in.

• Pension fund buy-in: The maximum buy-in amount is shown on your pension fund statement. Buy-ins are especially useful after years with low contributions or after a divorce
• Voluntary OASI contributions: If you have contribution gaps from previous years, you can make up for them. Catch-up payments are possible within 5 years and are tax-deductible

066. Time your invoicing strategically

In Switzerland, the accrual principle applies to sole proprietors: income is allocated to the year in which the service was performed -- not the year in which the money is received. Nevertheless, there is legal room for manoeuvre:

• Service in December, invoice in January: If the service is only completed in the new year, the income belongs to the new financial year
• Use partial invoices: For larger projects, you can issue partial invoices and thus spread the income over two years
• Book advance payments into the correct year: Advance payments received for services in the following year must be recorded as deferred income -- not as revenue for the current year

077. Don't forget expenses and professional costs

Many self-employed people forget everyday professional costs that add up over the year. These expenses are fully or partially deductible:

• Further training: Courses, seminars, conferences, online training related to your activity
• Technical literature: Books, trade journals, online subscriptions (e.g. industry publications)
• Work clothing: Special work clothing, safety equipment (not normal everyday clothing)
• Professional associations: Membership fees to professional and industry associations
• Meals: Business meals with clients (receipt + note with business purpose and participants)
• Gifts: Client gifts up to a reasonable amount
• Bank fees: Account maintenance fees, transaction costs, and card fees for your business account — often forgotten because they're deducted directly from the account with no separate invoice

Tip: create a checklist of all recurring professional costs and review it monthly. Also regularly check your bank statements for debited fees — these are fully deductible.

088. Deduct training and education costs

Since 2016, training and education costs have been uniformly regulated in federal law. For direct federal tax, the following applies:

• Training costs related to professional activity are deductible
• Maximum deduction for federal tax: CHF 12,000 per year
• Cantons may set higher or lower limits -- check with your cantonal tax authority
• Initial education (e.g. first degree) is not deductible

Important for self-employed people: As a sole proprietor, you record training costs directly as business expenses in your accounting. They reduce the business profit and thus the taxable income -- in addition to the personal deduction in the tax return (no double deduction, but recording as business expenses is generally more advantageous).

099. Bring forward investments in good years

Due to progressive taxation, you save more tax per franc of expenditure when your income is high. If you are planning purchases anyway (laptop, office furniture, software licences), it pays to bring them forward into a good income year.

• Laptop / computer: 40% declining balance depreciation or immediate write-off under CHF 1,000
• Office furniture: Ergonomic chair, standing desk -- 25% declining balance depreciation
• Software: Annual subscriptions for accounting, CRM, design tools -- immediately deductible as expenses
• Vehicle: Large deduction in the year of purchase with declining balance depreciation (40%)

Example calculation: With a taxable income of CHF 120,000 and a marginal tax rate of about 35%, a laptop costing CHF 2,500 saves you around CHF 875 in taxes (with immediate write-off). An office chair for CHF 900 in the same year? Another CHF 315 saved.

1010. Professional bookkeeping as the foundation

All the tips in this article have one thing in common: they require clean, complete bookkeeping. Without a complete record of all income and expenses, you cannot claim any deductions -- and your tax return will be incomplete. Professional bookkeeping is therefore not a cost but an investment that pays for itself many times over.

• No forgotten deductions: When every expense is recorded, you won't miss anything on your tax return
• Audit-proof documentation: In a tax audit, you can substantiate every deduction
• Better planning: You can see during the year how high your profit is and plan pension buy-ins or investments in time
• Lower accountant costs: Those who deliver clean bookkeeping need less correction work from their accountant

11Frequently asked questions about saving taxes