Economic affiliation

Economic affiliation is a Swiss tax concept describing a source-based link that creates limited tax liability. Typical examples include ownership of Swiss real estate, operation of a business or permanent establishment, brokerage of Swiss real estate, or claims secured by Swiss real property. The concept allocates taxing rights to the canton or state where the economic value arises. It is distinct from personal affiliation, which rests on domicile, residence, seat, or effective management and leads to broader tax liability.