Becoming Self-Employed in Geneva: 2026 Tax and Admin Guide

Self-employed vs. employee: understanding the difference

This article complements our guide: setting up a company in Geneva.

Under Swiss law, self-employed status isn't simply something you declare: it has to be recognised by the AVS compensation fund. A self-employed person runs their own business, bears the entrepreneurial risk, has their own client base, and isn't subordinate to an employer.

The decisive criteria the AVS uses to recognise self-employed status:
• Acting in your own name and on your own behalf
• Bearing the economic risk (investments, risk of loss)
• Having several clients (a single client is a sign of disguised employment)
• Having your own premises and equipment
• Being free to organise your own work

If the AVS fund refuses to recognise self-employed status, the person is treated as an employee. This has major consequences: the "client" becomes an employer and has to pay employer social security contributions retroactively.

In Geneva, the competent compensation fund is the OCAS (Office cantonal des assurances sociales, the cantonal social insurance office). You apply for recognition by completing a specific form together with evidence of your activity.

Steps to set up as self-employed

Setting up as self-employed in Geneva follows a precise administrative path:

1. Choose the legal form: the simplest form is a sole proprietorship (raison individuelle): no minimum capital, no notary, but unlimited liability extending to your personal assets.

2. Choose a name: for a sole proprietorship, the name must contain your last name. For example: "Dupont Consulting" or "Marie Dupont, architect".

3. Register with the Commercial Register (RC): mandatory if turnover exceeds CHF 100,000/year. Recommended even below that threshold for credibility and name protection. Cost: around CHF 350-400 in Geneva.

4. Apply for AVS recognition: with OCAS Geneva, using the self-employed affiliation form.

5. Affiliate with an AVS compensation fund: to pay your personal social security contributions.

6. Take out LAMal health insurance: mandatory, on an individual basis (you no longer have an employer to contribute on your behalf).

7. Consider loss-of-earnings insurance (daily sickness benefits) and accident insurance (LAA): not mandatory for the self-employed, but strongly recommended.

8. Register for VAT if required: mandatory from CHF 100,000 in annual turnover.

Social security contributions for the self-employed

The self-employed pay their social security contributions in full (both the employer and employee shares). The 2026 rates:

AVS/AI/APG (OASI/DI/IC): 10.6% of net income from the activity (full rate). A sliding scale applies to incomes between CHF 9,800 and CHF 58,800.

Family allowances (AF): vary by canton. In Geneva, the rate for the self-employed is 2.28% of income.

Unemployment insurance: the self-employed don't contribute to unemployment insurance and aren't entitled to it. This is a major risk to plan for.

Occupational pension (LPP): not mandatory for the self-employed. You can affiliate voluntarily with a pension institution or maximise pillar 3a.

Pillar 3a: the self-employed without an LPP can pay in up to 20% of their net income, with a maximum of CHF 36,288 (2026).

In total, social security contributions for the self-employed amount to roughly 13-15% of net income, compared with around 6-7% for an employee (who also benefits from the employer's share). This is a crucial factor to build into any profitability calculation for the activity.

Taxation of the self-employed in Geneva

A self-employed person operating as a sole proprietorship is taxed personally on the profit from their activity. There's no separation between the person and the business.

Taxable profit is calculated as follows:
Turnover
- Operating expenses (rent, supplies, subcontracting, insurance)
- Depreciation on business assets
- Personal social security contributions (AVS/AI/APG)
- Justified provisions
= Net profit from the activity

This profit is added to the taxpayer's other income (spouse's income, real estate income, etc.) and taxed at the ordinary income tax rate.

In Geneva, marginal rates can reach 44.75% for the highest incomes (federal direct tax + cantonal/communal tax + communal multipliers). So it's essential to optimise your deductions: maximise pillar 3a, depreciate assets correctly, and book provisions for identifiable risks.

Business assets (inventory, equipment, receivables) are also subject to wealth tax.

VAT for the self-employed

Registering in the VAT register is mandatory as soon as annual turnover exceeds CHF 100,000 (art. 10 VAT Act). Below that threshold, registration is voluntary.

Two accounting methods:
• Effective method: VAT collected - VAT paid = VAT due. More precise, recommended if you have significant expenses subject to VAT.
• Net tax rate method (TDFN): a flat rate is applied to turnover. Simpler administratively. The rate varies by sector (0.1% to 6.2%).

The standard VAT rate in Switzerland has been 8.1% since 2024. The reduced rate is 2.6% (basic necessities) and the special rate for accommodation is 3.8%.

Filing frequency: quarterly (the default) or half-yearly (on request). The return is filed online on the FTA (Federal Tax Administration) portal.

Klear tip: even below CHF 100,000, voluntary registration can be worthwhile if your clients are VAT-registered businesses (they reclaim the VAT) and if you have significant investments (you reclaim the VAT on your purchases).

The most common mistakes

Having supported dozens of self-employed people in Geneva, Klear Conseils regularly sees these mistakes:

1. Not applying for AVS recognition before starting: in the event of an audit, contributions are due retroactively with interest.

2. Confusing turnover with income: social security contributions and tax are calculated on net profit, not on turnover. Many people starting out underestimate their costs.

3. Not setting money aside for taxes: unlike employment, tax isn't withheld at source. You need to set aside around 30-40% of net profit for taxes and social security contributions.

4. Forgetting about VAT at CHF 100,000: the threshold is monitored by the FTA. An undeclared overshoot triggers retroactive VAT liability.

5. Mixing personal and business accounts: open a separate bank account from the start, even though it isn't legally required.

6. Underestimating pension provision: with no LPP and no unemployment cover, the self-employed are exposed. Maximise pillar 3a and consider a voluntary LPP.

Klear Conseils offers a "Self-Employed Launch" pack covering administrative support, accounting setup, and your first tax review. Get in touch for a tailored quote.

See also: setting up a company in Geneva · setting up a Sàrl (LLC) in Geneva · choosing between a Sàrl and an SA · employer social security contributions · 2nd or 3rd pillar for the self-employed