In Switzerland, consumer credit is not just a financing tool – it is also a frequently underestimated tax lever. Few individuals know that a personal loan can reduce their annual tax burden thanks to the deduction of interest and the inclusion of debt in wealth tax calculations. MultiCredit, a credit specialist since 1999, supports every client in this optimisation process.
1. The interest on a personal loan is tax-deductible
In the Swiss tax return, individuals can deduct all private interest paid during the year. This includes in particular:
- interest on a consumer loan
- interest on credit cards with partial (instalment) payment
- interest on other private debts
This deduction directly reduces taxable income, which lowers the amount of tax due. Every year, the financial institution provides a certificate stating the interest paid, and MultiCredit helps ensure it is correctly included in the tax return.
2. The debt from a loan is deductible from taxable wealth
In Switzerland, private debts reduce the taxable base for wealth tax. The outstanding balance of a personal loan is therefore considered a deductible liability, further easing the taxpayer’s overall tax burden.
This advantage also applies to credit card debts when they generate interest (instalment payment).
3. Credit vs. leasing: two completely different tax treatments
A key point for optimising your finances: leasing is not tax-deductible.
Why?
- Leasing is a rental contract.
- The person is not the legal owner of the vehicle or asset.
- Leasing instalments are not considered interest for tax purposes.
- No debt is recognised for tax purposes: no interest deduction and no deduction for wealth tax.
By contrast, a personal loan creates a declarable debt, generates tax-deductible interest and allows the client to remain the owner, free to resell the asset or repay the loan early.
4. Why work with MultiCredit?
MultiCredit offers comprehensive, professional support:
- Analysis of your financial situation to optimise your tax deductions
- Access to several banks and partners to obtain the best possible rate
- Fast, confidential and simple process
- Financing solutions from CHF 3,000 to CHF 400,000, tailored to private individuals in Switzerland
- Personalised advice to understand the tax impact of a loan compared with leasing
With more than 25 years of experience, MultiCredit helps you choose the most advantageous solution, both financially and fiscally.
Conclusion: tax optimisation of your credit in Switzerland
By choosing consumer credit, you benefit not only from flexible financing, but also from a tangible tax advantage. The deduction of interest and debt improves your net budget, whereas leasing offers no tax benefit at all. MultiCredit is by your side to help you obtain a smart, optimised loan that is perfectly adapted to your needs.
An article by Munur Aslan, Director of Multicredit.
