Taking loan interest into account for tax purposes – here’s how it works!

Natural persons can deduct interest on personal loans up to CHF 50’000 from their taxable income. This reduces the taxable income and therefore the taxes that have to be paid on the income.

In order to be able to deduct interest on debt in the tax return, the loan must be one of the following:

• Personal loans and personal loans
• mortgages
• Credit card utilisation

Interest from leasing contracts is not deductible. It is therefore advisable to weigh up the advantages and disadvantages of leasing compared to a car loan when buying a car.

Interest on debt must be entered in the list of debts on the tax return. If the loans were granted by natural persons such as friends or family, copies of the loan agreements and bank transfers should also be attached to the tax return.