Switzerland Lump-Sum Taxation Residency

Swiss lump-sum taxation, also called expenditure-based taxation or forfait fiscal, is a tax regime and not a visa. Eligible foreign residents are taxed on their living expenses instead of their actual income and wealth. The right to live in Switzerland comes from a separate cantonal residence permit.

• Who can use it: Foreign nationals taking Swiss tax domicile for the first time or after at least 10 years abroad who do not work in Switzerland
• Federal minimum tax base: CHF 435,000 a year for tax year 2026, adjusted for inflation each year
• Work in Switzerland allowed: No
• Not available in: Zurich, Schaffhausen, Appenzell Ausserrhoden, Basel-Landschaft and Basel-Stadt, which have abolished it

The regime suits financially independent people who move their life to Switzerland and live on means from abroad. It does not suit people who plan to work while living in Switzerland: holders may work only abroad, apart from managing their own assets.

The Federal Department of Finance sets the tax test. Who qualifies: Foreign nationals taking Swiss tax domicile for the first time or after at least 10 years abroad who do not work in Switzerland. Swiss citizens are excluded, and the regime ends for anyone who takes up gainful activity in Switzerland.

Immigration is a separate test with its own routes. EU/EFTA nationals: B permit for non-working residents under free movement. Other nationals: B permit at cantonal discretion for substantial cantonal fiscal interests (Art. 30(1)(b) FNIA, Art. 32 VZAE), with SEM approval, or the retiree route (age 55+, special ties to Switzerland, Art. 28 FNIA).

For the fiscal-interest permit, the State Secretariat for Migration (SEM) expects applicants to move their center of life to Switzerland and spend most of their time there. Authorities weigh the fiscal interest against the country's reputation, and gainful activity is allowed only abroad, apart from managing one's own assets.

No federal document list exists, because each canton runs its own file. Geneva's list for third-country nationals shows what cantons ask for:

• A completed, dated and signed form M.
• A color copy of a valid passport.
• Proof of accommodation, or an explanation such as a plan to buy a home.
• A tax agreement from the cantonal tax administration.
• A criminal record extract from the country of origin.
• A cover letter explaining why the applicant wants to settle in Switzerland.
• A written commitment not to work in Switzerland, to move the center of interests there and to spend most of the year there.
• A CV and civil status documents for family members included in the request.

Once resident, every person must take out Swiss basic health insurance within three months of taking up residence, according to the Federal Office of Public Health.

The main cost is the tax itself. For direct federal tax, the minimum taxable base is CHF 435,000 a year for tax year 2026, according to the Federal Tax Administration (ESTV). The figure is adjusted for inflation every year.

The base must also be at least seven times the annual rent or rental value of the home, or three times the annual cost of board and lodging, and it can never be lower than the household's actual worldwide living costs. Tax is then charged at ordinary rates on that base. Cantons set their own minimum bases for cantonal and communal tax, so the total bill depends on the canton and commune.

Residence permit fees are set by each canton, and no federal figure exists. Swiss basic health insurance is compulsory for residents and comes on top.

Two cantonal offices handle the file. Who does what: Cantonal tax administration (ruling on the taxable base) and cantonal migration office (residence permit); applications from third countries need SEM approval; no federal portal.

1. Choose a canton that still offers the regime and check its own minimum tax base.
2. Ask the cantonal tax administration for a ruling that fixes the taxable base.
3. Apply to the cantonal migration office for a residence permit, attaching the tax agreement.
4. For third-country nationals, wait for SEM to approve the canton's decision.
5. After moving, take out Swiss basic health insurance within three months.

No official processing time is published, and practice differs between cantons.

The residence permit (B permit) is always time-limited. Each canton sets its validity, and renewal depends on still meeting the conditions, including the commitment not to work in Switzerland.

• Path to a settlement permit (SEM): Yes, in principle: a settlement permit (C) after 10 years in total with a residence or short-stay permit, subject to integration criteria; earlier for some nationalities under settlement agreements

The tax status lasts only while its conditions hold. Taking up gainful activity in Switzerland ends it, and Swiss citizens cannot use it.

Under the general rule, a person becomes tax resident in Switzerland through domicile or through a stay of at least 90 days without gainful activity, ignoring short interruptions. A shorter stay is enough when the person works.

Lump-sum taxpayers are taxed on the base described under Cost and fees, at least CHF 435,000 for direct federal tax in 2026, instead of on their actual income and wealth. Cantonal and communal tax follow cantonal law, and five cantons (Zurich, Schaffhausen, Appenzell Ausserrhoden, Basel-Landschaft and Basel-Stadt) no longer offer the regime.

The regime affects Swiss tax only. Applicants should take advice on how their home country and any tax treaty treat the move.