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.

Lump-sum taxation

Lump-sum taxation

Instead of basing the tax rate on global income and wealth, it uses the taxpayer’s lifestyle expenses as a surrogate tax base.

Frank Lampert

Partner, Tax / Head of International Private Client Services Switzerland

 
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