Rental income from your Montreux Airbnb is taxable income, full stop — declared on your annual return like any other revenue. Separately, if your total business turnover exceeds CHF 100,000 a year, you must also register for and charge Swiss VAT, at a special reduced rate of 3.8% for accommodation stays rather than the standard 8.1%.

These are two different tax regimes with two different triggers, and owners regularly confuse them. This guide separates the two clearly. It complements our registration and permit guide, which covers tourist tax and municipal authorisation but not income tax or VAT.

⚠️ This is general information, not tax advice. Swiss tax practice varies by canton and by individual circumstances (residency status, whether the property is owned personally or through a company, other income sources). Nothing here replaces a conversation with a qualified Swiss tax advisor or your canton's tax administration before you file.

In this guide

  1. Is Airbnb income taxable in Switzerland?
  2. The CHF 100,000 VAT threshold
  3. Which VAT rate applies to short-term rental?
  4. What can you deduct?
  5. How this differs from tourist tax
  6. Frequently asked questions

Is Airbnb income taxable in Switzerland?

Yes, unconditionally. Rental income — whether from a traditional long-term lease or a short-term Airbnb booking — is taxable income under Swiss law, declared on your ordinary annual tax return and taxed at federal, cantonal, and communal level. There is no minimum-income exemption specific to short-term rental; if you earn it, you declare it.

This applies regardless of whether you're a Swiss tax resident or a foreign owner who holds a Montreux property. Non-resident owners are generally taxed in Switzerland on the rental income the property generates, though the exact mechanism (withholding versus ordinary assessment) depends on your residency and tax treaty situation — another reason to involve an advisor early.

Key point: unlike VAT, there's no turnover threshold for income tax. A single guest-night of rental income is technically declarable. VAT is the regime with the CHF 100,000 threshold — covered next.

The CHF 100,000 VAT threshold

Switzerland's Value Added Tax Act sets a standard mandatory-registration threshold of CHF 100,000 in annual turnover from taxable goods and services, confirmed on the Federal Tax Administration's official tax liability page. Below that figure, you're exempt from VAT registration even if you're operating as a business.

The threshold applies to your total Swiss business turnover, not per property. If you own and rent out two Montreux apartments and their combined nightly-rate turnover crosses CHF 100,000 in a year, VAT registration becomes mandatory across both — not just the one that individually exceeds the figure.

A single well-performing 2-bedroom lakefront apartment in Montreux, especially one capturing Jazz Festival premiums, can realistically approach or cross this threshold on its own — see our income guide for realistic annual revenue figures.

Which VAT rate applies to short-term rental?

Once registered, the rate that applies to your Montreux rental isn't the standard 8.1% rate — it's Switzerland's special reduced rate for accommodation services.

VAT rate Applies to
8.1% (standard) Most goods and services
3.8% (special) Accommodation services — overnight stays with breakfast, including the letting of holiday apartments
2.6% (reduced) Not applicable to accommodation — food, books, medications, and similar goods

This special 3.8% rate is set out explicitly by the Federal Tax Administration as covering "accommodation services (overnight stays with breakfast) in the hotel and accommodation business (e.g. letting of holiday apartments)." A Montreux apartment rented nightly on Airbnb falls squarely under this category.

What can you deduct against rental income?

Property-related operating costs are generally deductible against your gross rental income before it's taxed — this is standard practice for Swiss rental income of any kind, short-term or long-term. Categories that typically qualify include property management commission, cleaning and turnover costs, maintenance and repairs, and depreciation on furnishings.

Exactly what counts, and what documentation you need to support it, varies somewhat by canton and by whether you hold the property personally or through a company structure. Keep clean records — invoices for cleaning, management statements, maintenance receipts — from day one, since these are exactly what a tax advisor or cantonal tax office will ask to see.

Why this matters in practice: owners who use a professional management service already receive a monthly statement itemising commission, cleaning fees, and expenses — the same document that simplifies both bookkeeping and your annual tax filing. See our hidden costs of self-managing guide for the full cost breakdown self-managing owners often miss.

How this differs from the tourist tax (taxe de séjour)

The taxe de séjour covered in our registration guide is a separate, third obligation from both income tax and VAT. It's collected from the guest, on behalf of the commune, and passed through — it was never your income, so it doesn't appear on either your income tax return or your VAT return as revenue.

In short: three separate obligations, three separate authorities. Income tax goes to the cantonal/federal tax administration on revenue you actually earned. VAT (if you cross the threshold) goes to the Federal Tax Administration on the service you provided. Tourist tax goes to the commune on behalf of your guest, and was never yours to begin with.

Related reading: How to legally register your apartment for short-term rental · Complete guide to renting your Montreux apartment · Hidden costs of self-managing · How much can you earn on Airbnb?

Bahram Khanlarov
Bahram Khanlarov

Founder of Riviera Host. BBA Hospitality (Glion), MSc Tourism (FHGR), MSc Data Science (HSLU). 8+ years managing short-term rentals on the Swiss Riviera.

Want the paperwork handled end-to-end?

Riviera Host provides monthly statements that itemise commission, cleaning, and expenses for every managed property — the exact documentation your tax advisor will ask for. We don't provide tax advice, but we make sure you have everything you need to give one.

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Frequently asked questions

Do I need to charge VAT on my Montreux Airbnb income?

Only if your total Swiss business turnover — across all activities, not just this one apartment — exceeds CHF 100,000 per year. Below that threshold you're exempt from VAT registration. Above it, registration is mandatory and the special accommodation rate of 3.8% applies.

What VAT rate applies to short-term rental income in Switzerland?

Accommodation services — including the letting of holiday apartments — are taxed at Switzerland's special reduced rate of 3.8%, not the standard 8.1% rate. This is confirmed by the Federal Tax Administration's official VAT rate schedule.

Is Airbnb rental income subject to Swiss income tax?

Yes. Rental income from short-term letting is taxable income, declared on your annual tax return alongside any other income, and taxed at federal, cantonal, and communal level. This applies whether you're a Swiss resident or a foreign owner with a Swiss property.

Can I deduct expenses like cleaning, commission, and furnishing?

Generally yes — property-related costs such as management commission, cleaning, maintenance, and depreciation on furnishings are typically deductible against rental income under Swiss tax law. Exact deductible categories should be confirmed with a tax advisor, since practice can vary by canton.

Does the tourist tax count as part of my taxable income?

No. The tourist tax is collected on behalf of the commune and passed through — it isn't your income and isn't part of your taxable rental revenue. It's a separate, pass-through obligation from the income tax and VAT questions covered in this guide.

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