Switzerland is the hardest country in this cluster to generalise about, because "Swiss tax" is not one number. Cantonal and communal tax alone can range from roughly 22% to over 40% on the same income, before federal tax and AHV contributions are even added. Georgia's 1% regime is real and the treaty between the two countries has been in force since 2012, so this can work cleanly for the right profile. What decides it is less about exit taxation, since Switzerland runs no general one on individuals, and more about AHV continuity, the commune departure formalities, and whether the wealth tax you are actually leaving behind was the bigger prize all along.
What you pay now vs. in Georgia
Take a self-employed IT freelancer earning CHF 90,000 a year in net profit, resident in a mid-range canton such as Vaud rather than low-tax Zug or high-tax Geneva.
AHV/IV/EO contributions for the self-employed run 10.0% of relevant income above a low threshold, per the official 2026 rates, producing roughly CHF 9,000 on this profile. Combined federal, cantonal and communal income tax in a mid-range canton commonly lands around 25 to 30% of net profit for this income level, so we use 27% here, roughly CHF 24,300.
| Switzerland, mid-range canton (illustrative) | Georgia (Small Business Status) | |
|---|---|---|
| Net profit | CHF 90,000 | CHF 90,000 turnover |
| AHV/IV/EO | roughly CHF 9,000 | none equivalent |
| Combined income tax | roughly CHF 24,300 | 1% of turnover |
| Total | roughly CHF 33,300 | CHF 900 |
This is illustrative only, and the single most important caveat in this whole guide: swap Vaud for Zug and the tax line drops sharply; swap it for Geneva and it rises. There is no version of this table that is accurate for all 26 cantons, which is exactly why the honest advice for a Swiss mover is to run the specific cantonal numbers rather than trust any single figure, including this one.
Does the 1% actually apply to you
Georgia's 1% only applies to Georgian-source income, and for services that generally means work physically performed in Georgia, a test covered in Georgian-source income rules. A Swiss national who registers a Georgian IE and keeps working from Lausanne has a source problem before any Swiss rule matters at all.
Small Business Status also rules out consulting, legal, medical, auditing and licensed work, and caps turnover at 500,000 GEL. A freelance developer or designer clears both bars easily; someone invoicing as a "consultant" for ordinary technical work does not.
What Switzerland does when you leave
Three things matter here, and one absence is worth stating plainly because it changes the whole shape of the conversation compared with the rest of this cluster.
Switzerland runs no general exit tax on individuals. There is no deemed disposal of assets on the day residency ends, unlike Belgium's new regime or Austria's Wegzugsbesteuerung covered elsewhere in this cluster. This follows partly from ordinary Swiss practice: private capital gains on movable assets held outside a business are not taxed on sale for Swiss residents either, so there is comparatively little for an exit rule to catch. Switzerland also has no statutory controlled foreign company regime at all, though the Federal Supreme Court can still look through an arrangement with no real economic substance under general anti-abuse doctrine, which matters if a Georgian entity is a pure shell rather than a genuine operating business.
Leaving Switzerland stops mandatory AHV/IV/EO contributions, currently 10.0% of relevant self-employed income. Georgia has no comparable mandatory scheme and no totalisation agreement with Switzerland, so those contribution years simply stop unless you act. Swiss, EU and EFTA nationals moving outside the EU/EFTA area can apply for voluntary continued insurance, provided they were insured for at least five consecutive years immediately beforehand and apply within one year of leaving mandatory cover. Missing that window closes the option permanently and can mean a reduced Swiss pension later.
The overlooked upside runs the other way. Every canton levies its own wealth tax, with typical rates from about 0.1% to 0.8% of net assets a year, and it is often the larger recurring cost for anyone with real capital, well above what the income tax comparison alone suggests. PwC's Switzerland summary confirms the tax exists in every canton with no federal equivalent and no Georgian counterpart at all, which is frequently the actual reason a wealthier Swiss resident finds this move attractive, separate from anything to do with the 1%.
Switzerland is not on the EU's list of non-cooperative jurisdictions and was removed from the OECD's own grey list in 2019, and Georgia carries no flag on Switzerland's side either. The treaty between the two countries has been in force since 2012, per the Swiss Federal Tax Administration's own treaty page, giving a genuine tie-breaker if both sides claim you as resident in the same year.
The steps, in order
- Check your activity against Georgia's prohibited list first. Consulting, legal, medical, auditing and licensed work cannot hold Small Business Status regardless of anything else here.
- Confirm your specific canton's exit position before assuming any figure in this guide. Cantonal practice on part-year taxation and departure varies enough that this step is not optional.
- File a declaration of departure with your commune, typically two weeks before leaving, and request the attestation de depart most institutions will later ask for.
- Decide on voluntary AHV continuation within the one-year window if you want your Swiss pension record to keep building.
- Close out or transfer any pillar 2 and pillar 3a pension assets according to your commune and pension fund's specific departure rules.
- Register a Georgian Individual Entrepreneur and apply for Small Business Status, in person or under power of attorney through remote registration.
- Get a Georgian Tax Residency Certificate once you cross 183 days, as evidence a Swiss institution or tax office will actually accept.
Timeline and cost
The Georgian side is quick: an IE with Small Business Status is typically registered within a few business days, longer under power of attorney. The Swiss side is procedurally simple but has real deadlines: commune deregistration itself is fast, but the AHV voluntary-continuation window is a hard one-year cutoff, not a soft guideline, and pension fund transfers can take weeks to process correctly. Budget for a Swiss tax adviser who actually knows your specific canton's departure practice, since generic advice is the one thing this guide has repeatedly warned against.
The verdict: strong fit, but only once your specific canton is priced in
Switzerland has a real treaty since 2012, no blacklist exposure either direction, and no general exit tax to plan around. That is a genuinely clean structural position compared with most of this cluster. The catch is that "Swiss tax" is not a single number, so a verdict that ignores your actual canton is not a real verdict.
For someone who has priced their specific cantonal position honestly, secured AHV continuation if it matters to them, and is not walking away from an unusually favourable low-tax canton, this is a strong fit. For someone already resident in Zug or Schwyz comparing against Georgia on income tax alone, the realistic gap may be smaller than the headline 1% suggests, and the wealth tax angle, not the income tax angle, is often the more honest reason to move.
We'll work through what your specific canton actually charges today, whether voluntary AHV continuation makes sense for your situation, and what the honest all-in comparison looks like once your real cantonal rate replaces a generic Swiss average.
See what it costs
If you are weighing this against a neighbouring German-speaking jurisdiction with its own exit-tax logic, our Austria guide covers a useful contrast. Our Georgia tax residency guide covers the 183-day test from the Georgian side, and our double tax treaty guide covers how to invoke the Switzerland-Georgia treaty once you need to.
Key takeaways
- Cantonal and communal tax variation is wide enough that no single "Swiss tax rate" is meaningful; always check your specific canton.
- Switzerland has no general exit tax on individuals, and private capital gains on movable assets are not taxed domestically either.
- AHV/IV/EO contributions stop on departure; voluntary continuation is available within one year for Swiss, EU and EFTA nationals with five years of prior cover.
- Cantonal wealth tax, which Georgia has no equivalent of, is often the larger real saving for wealthier movers.
- Switzerland has had a treaty with Georgia since 2012 and carries no blacklist exposure in either direction.
- Switzerland has no statutory CFC regime, though genuinely substance-free arrangements can still be challenged under general anti-abuse doctrine.
- The verdict depends heavily on which canton you are actually leaving, more than in any other country in this cluster.
Frequently asked questions
Does Switzerland have a tax treaty with Georgia?
Yes, in force since 2012, according to the Swiss Federal Tax Administration. That gives a genuine tie-breaker if both countries claim you as resident in the same year.
Why can't this guide just give one Swiss tax number?
Because cantonal and communal tax varies enormously, with combined rates commonly running from about 22% in Zug to over 40% in Geneva on comparable income. Any single figure would be wrong for most readers, which is why checking your specific canton matters more here than anywhere else in this cluster.
Does Switzerland charge an exit tax like Germany or Austria?
No. Switzerland runs no general exit tax on individuals, and unrealised gains are not deemed disposed of on departure. This follows partly from Swiss practice generally not taxing private capital gains on movable assets even for residents who never leave.
What happens to my AHV pension contributions if I leave?
Mandatory contributions stop once you deregister. Swiss, EU and EFTA nationals moving outside the EU/EFTA area can apply for voluntary continued insurance if they were insured for the preceding five consecutive years and apply within one year of leaving mandatory cover, which protects the pension record from gaps.
Do Switzerland's CFC rules reach a Georgian company I own personally?
Switzerland has no statutory CFC regime at all, for individuals or companies. A genuinely substance-free arrangement can still be challenged under the Federal Supreme Court's general anti-abuse doctrine, but this is a narrower risk than a formal CFC rule.
Is the Swiss wealth tax relevant to this decision?
Often, yes, and sometimes more than the income tax comparison. Every canton levies its own wealth tax with no federal or Georgian equivalent, and for anyone holding real capital it can be the larger recurring cost, which makes leaving attractive on a basis separate from the 1% regime entirely.
Is Georgia on Switzerland's blacklist?
No. Switzerland is not on the EU's list of non-cooperative jurisdictions and was removed from the OECD's own grey list in 2019, and Georgia carries no flag on the Swiss side either.
What do I actually need to do with my commune before leaving?
File a declaration of departure, typically about two weeks before you go, and request the attestation de depart. Many later formalities, including bank and insurance matters, will ask for this confirmation as proof you have genuinely left.
Does my canton of residence still matter if I already left partway through the year?
Yes. Cantonal practice on part-year and departure-year taxation differs, so the specific canton you were leaving governs how the year of departure itself is taxed, not a national default.
Should I register as an IE or an LLC in Georgia?
An IE, for almost everyone in this situation. It registers faster and keeps the structure simple while you confirm the arrangement works for you. An LLC becomes worth the added complexity once turnover nears the 500,000 GEL ceiling or liability separation genuinely matters.