Residence & Citizenship

Switzerland

If you are looking for a high quality of life in one of the world’s most economically and politically stable countries, living in Switzerland could provide you with the ideal answer.

Not only will you find yourself at a central hub for travel to over 200 international locations, you will also have access to the beautiful scenery of the Alps and picturesque lakes.

Swiss detail

Swiss Programme

Please click into the tab below to view the benefits, the financial obligations and other criteria that might apply:

Programmes – Benefits & Criteria

Switzerland

Switzerland Lump Sum Tax Regime

Switzerland Residence Through Work Permit

  • Benefits
  • Financial/Other Obligations
  • Additional Criteria

Switzerland Lump Sum Tax Regime

The Swiss Lump Sum System of Taxation is based on an assumed income, generally approximately seven times the annual rental value of the property occupied in Switzerland.

Liability to inheritance tax varies from canton to canton. A few cantons do not apply inheritance tax. The majority do not levy it between spouses or between parents and children, and levy only a modest tax of below 10% for other descendants.

Individuals taxed under the Lump Sum Regime are able to manage their worldwide investments from Switzerland.

Switzerland Lump Sum Tax Regime

Swiss tax is paid on an assumed income, generally approximately seven times the annual rental value of the property occupied in Switzerland. The precise taxation liability will depend upon the canton and the area of residence within the canton.

The Swiss Government confirmed its commitment to maintaining the Lump Sum System of Taxation in November 2014.

Switzerland Lump Sum Tax Regime

This regime applies to foreigners who move to Switzerland for the first time, or after an absence of ten years, and who will not be employed or commercially active in Switzerland.

Please note there are 26 Swiss cantons.

Only the three Swiss cantons of Appenzell, Schaffhausen and Zurich abolished the Lump Sum System of Taxation in 2013.

Download Full List of Programmes – Benefits & Criteria (PDF)


Living in Switzerland

Switzerland is one of 26 countries in the ‘Schengen’ area and a Swiss residence permit will enable you to enjoy full Schengen travel rights.

A country that already offers a unique blend of benefits, Switzerland also offers the extremely attractive: ‘Lump Sum System of Taxation’. As long as you are living in Switzerland for the first time or returning after a minimum 10-year absence, your income and wealth taxes will be based on your living expenses in Switzerland, NOT on your worldwide income or assets. Please contact us to find out more.

Moving to Switzerland

Switzerland is in the centre of Europe, bordered by; Germany, France, Austria and Italy. It has very close links to the majority of European countries and is a member of the European Free Trade Association (EFTA), but it is not a member of the EU.

Switzerland is divided into 26 cantons, each currently with its own basis of taxation.

Tax Advantages when Living in Switzerland

If an individual has a Swiss work permit, they can become Swiss resident. They must have a job or form a company and be employed by it. It is straightforward for EU citizens over the age of 55, who are not working, to move to Switzerland, as long as they are financially independent.

The ‘Lump Sum System of Taxation’ is applicable for individuals moving to Switzerland for the first time or returning after a minimum ten year absence. No employment can be undertaken in Switzerland, but the individual can be employed in another country and can administer private assets in Switzerland.

The ‘Lump Sum System of Taxation’ bases income and wealth taxes on a taxpayer’s living expenses in Switzerland, NOT on his/her worldwide income or assets.

Once the tax base (living expenses in Switzerland), has been determined and agreed with the tax authorities, it will be subject to the standard tax rate in that particular canton.

Third country nationals (non-EU/EFTA), are required to pay a higher lump-sum tax on the basis of “predominant cantonal interest”. This generally equates to paying tax on deemed (or actual) annual income, of between CHF 400,000 and CHF 1,000,000, and depends on a number of factors, including the specific canton in which the individual lives.

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