Lump Sum Taxation, Tax and Structuring in Switzerland

Lump sum taxation in Switzerland

If you are a foreigner buying property in Switzerland and don't plan to work in the country, some cantons will allow you to negotiate lump-sum taxation ahead of a move to Switzerland. Very few Swiss residents have lump-sum taxation agreements - around 4500 individuals in official numbers published in 2018. 

Lump-sum taxation (also called expenditure-based taxation) may be available for UHNWI who want to reside in Switzerland but do not work and generate income in the country. Lump-sum taxation is applied for and arranged with each canton on a case by case basis. Wealthy applicants that are granted lump-sum taxation also receive a Swiss residency permit. With this residency permit, the individual can buy property anywhere within the relevant canton. Wealthy individuals can be considered for lump-sum taxation if they plan to move to Switzerland for the first time or have lived there in the past but have not been resident for at least ten years or longer. 

Zurich, Schaffhausen, Appenzell Ausserrhoden, and Basel Landschaft do not offer lump-sum taxation, and other cantons have restricted the scheme's benefits. It is most prevalent in Vaud, Geneva and Valais. 

Tax and Structuring

Whether you plan to reside permanently there or not, it is always essential to obtain specialist advice on tax, permits, structuring, and the other mandatory requirements or implications of purchasing property and/or living in the country.

Switzerland's professional services firms, banks, and other financial institutions work quickly and deliver the best services. Used to serving high-net-worth individuals and high-profile clients, you will find you can get the answers and information you need to move forward with a property purchase. With an office in Geneva and another in Zurich, Enness' team will be able to introduce you to relevant professional services and advisory firms who can advise you in Switzerland if that is helpful.