Switzerland’s tax law offers interesting planning opportunities for foreign nationals considering relocation. A central location within Europe and high standard of living, as well as connections to over 200 international locations via regular international flights make Switzerland an attractive alternative residence.
Non-Swiss nationals taking up residence in Switzerland for the first time can opt for taxation based on expenses. The so called “lump-sum tax regime” opens up attractive tax perspectives to resident non-Swiss nationals who do not carry out a gainful employment activity in Switzerland.
The simplified lump-sum assessment procedure uses the taxpayer’s lifestyle expenses as a tax base instead of income. Once the tax base has been determined, it is then subject to ordinary tax rates.
The resulting effective tax rate under the lump-sum tax regime and the practice by most cantons of no inheritance tax for spouses and direct decedents make Switzerland also from a tax perspective an attractive residence.