The lump-sum taxation for foreigners

To promote the settlement of affluent foreigners, Switzerland has introduced lump-sum taxation. Lump-sum taxation is possible for foreign citizens who settle in Switzerland for the first time or after a ten-year absence from the country and who do not engage in any gainful activity. The decisive factor for taxation is the cost of living, not global income or wealth.

For taxation, the annual cost of living expenses are considered. In principle, all expenditures, including housing costs, food, employees, leisure activities, travel, etc., are included. However, there are significant difficulties in determining the relevant expenses. Therefore, Swiss law provides for assessment based on housing costs. Based on the living situation, there is a distinction between:

It should be noted that significant changes will come into effect on January 1, 2016, with the revision of the lump-sum taxation. The assessment basis at the federal and cantonal level will be raised to seven times the rent. In addition, the minimum expenditure at the federal level has been set at CHF 400,000. The minimum expenditure at the cantonal level has not yet been definitively determined.

However, lump-sum taxation is not possible in all cantons, for example, it was abolished in Zurich, Basel, Schaffhausen, and Appenzell Ausserrhoden. On the other hand, a high number of lump-sum taxations can be recorded in the southern cantons near the border. Our experts are pleased to advise you on all matters concerning lump-sum taxation. Calculate your quotation online and arrange a consultancy appointment.