SWITZERLAND / LUMP-SUM TAXATION
Lump-sum taxation, also known as expenditure-based taxation, is a special Swiss tax regime for certain foreign nationals who take up residence in Switzerland and do not carry out gainful activity in Switzerland. It is based on the taxpayer’s living expenses rather than on ordinary worldwide income and wealth taxation.
General conditions
In general, the regime is available only to foreign nationals who are not Swiss citizens, who take up residence in Switzerland for the first time or after a long absence, and who do not engage in gainful activity in Switzerland. The exact conditions and calculation method must be verified with the competent canton.
Cantonal differences
The regime is applied differently from canton to canton. Some cantons may not offer it, and the tax basis, negotiation process and practical requirements vary significantly.
Procedure
Before relocating, the applicant should review both the immigration route and the tax position with the relevant canton. Tax approval and immigration authorization are distinct issues and should be coordinated carefully.
Lump-sum taxation can be relevant for certain high-net-worth foreign nationals relocating to Switzerland, but it requires careful legal and tax analysis. Eligibility, tax basis, cantonal practice and immigration status should be confirmed before any relocation decision.