More and more people with foreign roots support their parents or parents-in-law in their home country financially. What many don’t know: under certain conditions, these payments can be claimed for tax purposes in Switzerland. The so-called support deduction (Unterstützungsabzug) can result in significant tax savings – provided that all legal requirements are met and properly documented.
In this article, we explain in detail:
- What the support deduction is
- General conditions that apply across Switzerland
- Which documents are accepted as proof
- The differences between cantons like Lucerne, Zurich, Aargau, Bern, and St. Gallen
- Common mistakes and how to avoid them
- How ajooda can help you
What is the Support Deduction?
The support deduction allows taxpayers in Switzerland to deduct financial assistance provided to economically dependent relatives abroad from their taxable income. Most commonly, this applies to parents or parents-in-law living in countries like Portugal, Brazil, or Turkey.
Example: Ricardo lives and works in the canton of Lucerne. His parents live in Portugal and receive a very small pension. He sends them CHF 500 each month, or CHF 6,000 per year. This amount can be deducted from his taxable income if the requirements are met.
General Requirements (Apply in All Cantons)
Several conditions must be met in full to claim the deduction:
1. Financial Need
The supported individuals must be financially dependent. That means:
- No or very low income in the home country
- No significant assets
Proof: A written confirmation from the local authorities in the home country (e.g., “Atestado de pobreza” or “Declaração de rendimentos” in Portuguese).
2. Family Relationship
Eligible relatives include:
- Parents
- Parents-in-law
- Other relatives (depending on the canton and situation)
3. Regular Financial Support
One-time payments are not sufficient. Generally accepted:
- Monthly or quarterly payments
- At least CHF 3,000 per year (recommended minimum)
4. Verifiability
Only bank transfers are accepted. Cash, Revolut, or Western Union are usually not recognized.
Accepted proof:
- Bank statements showing the recipient and amounts
- Exchange rate documentation (if needed)
Different Rules in Each Canton
The following differences apply in the German-speaking cantons of Switzerland:
Canton Lucerne
- Maximum deduction: CHF 6,500 per supported person
- Required documents: Original municipal confirmation + bank statements
- Special case: Parents-in-law also eligible
- Note: Cash and Revolut payments not accepted
Canton Zurich
- Maximum deduction: CHF 6,500
- Proof: Bank statements + translated foreign confirmation
- Strict review by the tax authority
- Tip: Submit all documents early
Canton Aargau
- Deduction up to CHF 6,500 allowed
- Complete documentation required
- Only official documents accepted – no informal letters
Canton Bern
- Deduction up to CHF 6,500
- Pay attention to correct exchange rate and currency conversion
- All documents must be officially certified or stamped
Canton St. Gallen
- Deduction aligns with federal tax law: CHF 6,500
- Requires bank statements and official documents
- Tax office often requests further information in case of doubt
Common Mistakes (and How to Avoid Them)
- Cash payments to parents → not accepted
- Missing official confirmation from local municipality → deduction denied
- Irregular payment pattern → questions about legitimacy
- Revolut or Western Union without clear recipient name → not traceable
- Old or missing documents → must be renewed every year!
Practical Tips
- Always use the same recipient name and bank account.
- Get the confirmation from your parents’ local authorities.
- If the documents are not in German, French, Italian, or English, get them officially translated.
- Prepare everything before submitting your tax return – late submissions may not be accepted.
How ajooda Supports You
We help you correctly claim the maximum possible support deduction. Our services include:
- Verification of your documents
- Checklists for your parents or in-laws abroad
- Optional translation service for documents
- Tailored consultation for Lucerne, Zurich, Aargau, Bern, St. Gallen, and more
Conclusion: If You Support Correctly, You Can Save a Lot
The support deduction is a legally defined way to help your relatives abroad while reducing your tax burden in Switzerland. With a solid strategy, regular payments, and clean documentation, you can save several thousand francs per year.
ajooda is here to guide you every step of the way.
ajooda.ch – Your digital tax consultancy for all of Switzerland.
Start now: www.ajooda.ch
