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Skip to content A long time ago I read a quote that changed my thinking forever. Until then, I thought that having a career, earning good money and looking after my Pillar 3a would give me financial peace of mind.
But the words "Those who can't find a way to earn money while they sleep will work until they die" should change my thinking and actions in the long term.
For many years now I have dedicated myself to Generation of passive income. You can find everything you need to know about passive income in Switzerland in this series of articles, which also includes passive investing will take up.
You can thank me later, for now I wish you good entertainment!
The Swiss earn well. At least when you consider the purchasing power of the Swiss franc and compare salaries with those in surrounding countries.
But many forget to look at the working conditions or take a look at the pensioners. If we were to work only 35 hours a week, had strong unions and more than 30 days of vacation, many a salary would look different.
In 2020, Pro Senectute determined that 17% of Swiss pensioners dependent on supplementary benefits are. In short: working a lot and earning well is great (active income). But who passive income flows can generate a nice income at a young age. Additional income and generate further security in the pension.
A passive income may by definition not active through direct Time use be deserved.
For example, with a normal active income, you earn 30 Swiss francs per hour. Work more, earn more and vice versa.
In the case of passive income, however, this is decoupled. Often more work has to be done in the beginning before the first income is generated. Afterwards, however, the income continues to flow, even if hardly any or no more work has to be done for it.
Examples of passive income:
"Intelligent people learn from the mistakes of others".
We have compiled our top selection for you from all our tests and experience reports:
The amount, security and stability of your Passive Income depends entirely on the created Added value off. So feel free to let the Ideas for passive income inspire, but above all, think for yourself!
The better your idea, the more you can earn and the harder it will be for competitors to take your niche.
The taxation of your passive income depends entirely on the type of source. For example, does it come from Investment incomeit falls under the so-called Withholding tax.
In Switzerland, this will be 35% in 2024 and will then be declared in the tax return and subsequently refunded.
Things can be better with passive income from self-employment or one's own business be. No general statements can be made there. But it is an open secret that taxes can be optimised and very partially reduced. To go into detail here would go beyond the scope of this article.
But it is also worth mentioning the term digital nomad. These are typically entrepreneurs who travel the world, make their money online and are often even stateless. You can find out how to avoid paying taxes in this way at stateless.ch.
We have now explained what passive income is and why Swiss people should know about it. Equally well known in recent years have been Exchange Traded Funds or ETF for shorts.
ETFs are made up of a whole basket of financial products and therefore represent the index. For example, you can buy an ETF that contains all the shares of Swiss companies from the IT sector.
Such an investment in the Index is therefore considered passive investing is the term used. Since there are ETFs that pay out the dividends of the shares they contain, you can also generate passive income with passive investing. What's so special about this and how you can beat the performance of top fund managers with this method, we explain in the Continued of this series.
If you want to generate passive income, the term "passive income" should be familiar to you. Financial freedom be familiar to you. Here the term is explained and you can easily calculate your current financial freedom:
It's easy to say why extra income is so popular throughout Switzerland: Financial self-determination and security is an important issue for many.
There are various ways to build up a passive income. You can invest your money and then receive returns, build up a small business or an online income.
Passive income always requires a commitment on your part first. Be it in the form of money or effort, first you have to perform, then you can reap the rewards.
Here you will find 50 ideas to make money onlineand earn extra income from the comfort of your own home anywhere in Switzerland!
If you need more Ideas for passive income flows in Switzerland please feel free to share them in the comments!
Your key to success! Discover our top recommendations from real testimonials.
9 Responses
I have to partially correct you here:
"The taxation of your passive income depends entirely on the type of source. If it comes from capital gains, for example, it is subject to capital gains tax.
There is no capital gains tax in Switzerland. Profits from investments (capital gains) are tax-free - but interest and dividends are subject to 'withholding tax'. This amounts to 35%, but is only a security tax and is technically paid back if declared in the tax return. So it's not 35% + extra progressive taxes, don't scare people about dividends :-))
Otherwise, good article :-))
A mistake had crept in, thanks for pointing it out! The post has been corrected.
These are of course subject to withholding tax.
Hi!
Nice blog! I have a question about taxation regarding affiliate marketing in Switzerland and also I wanted to know whether students are allowed to engage in this activity or not.
Thanks in advance.
Samanta
Hi, Samanta,
thanks for your positive feedback!
If you have income in Switzerland you have to declare it and depending on your status and income you will have to tax it as every other income.
To your 2nd question: Why should a student not be allowed to do earn money? Do you receive a scholarship which would be cancelled if you have a certain income?
Hi!
Cool blog, nicely presented! Somehow you beat me to it a year ago, had very similar ideas for a finance blog for some time.
But what about the "cleaners" 😉 Politically correct today would be more like cleaners, hihi.
Greetings
Oliver
Hi Oli
I can see your blog is definitely getting politically correct 😀 picked up the comment 🙂 .
Best wishes and good luck!
Hello, Eric. Good contribution! I hope that people take advantage of the current situation and think a little bit about their financial situation. Permanent employment is not a good security, but the topic of passive income gives you financial security in the long run. That's why I think your contribution is so great! I have written on my website listed some more ideas on this topic. I hope it helps a reader! LG Martin
Hello Eric
Great blog! Unfortunately the link at the end of the article does not work.
Keep up the good work, greetings
David
Hey David, thanks for the praise and the comment - will be corrected immediately! LG Eric