Lump-sumTaxation
Lump-sum taxation (Switzerland)
Lump-sum taxation — a Swiss regime that taxes based on living expenses rather than worldwide income, for wealthy new residents.
- What it is
- Lump-sum taxation — the Swiss regime of tax based on living expenses
- How it is calculated
- On the resident’s annual expenditure, not worldwide income
- Who it is for
- Wealthy new residents not working in Switzerland
- Advantage
- A predictable tax and life in Switzerland
- How to use it
- Agree the amount with the canton when relocating
In plain words
Lump-sum taxation (taxation on expenditure) is a special Swiss tax regime for wealthy foreigners who become residents of Switzerland but do not work in the country. Its essence is that tax is calculated not on the person’s worldwide income but on their annual living expenses (notionally assessed, with a set minimum) — hence a predictable and often advantageous amount for large fortunes.
The regime is available to new tax residents who move to Switzerland and carry on no employment or business activity there. The specific amount of tax is agreed with the cantonal authorities (in Switzerland much is decided at canton level) and depends on the expenditure and the arrangements. It is a lawful, long-established tool used by wealthy people who value stability, privacy and the quality of life in Switzerland.
For a wealthy person planning a move, lump-sum taxation is an attractive option: instead of tax on all worldwide income, a predictable payment tied to lifestyle. But the regime requires residence to be properly established, agreement with the canton and compliance with the conditions (including not working in Switzerland). We help assess whether this regime suits you and plan the move around its conditions.
Who lump-sum taxation suits
What matters about lump-sum taxation
- On living expenses
- Not on worldwide income
- With a set minimum
- New residents
- Wealthy individuals
- No work in Switzerland
- Agreement with the canton
- Depends on the canton
- A lawful regime
- A predictable tax
- Stability
- Quality of life
How to obtain the regime
- 01Assess whether the regime suits you
- 02Choose a canton and establish residence
- 03Agree the amount of tax
- 04Compliance with the conditions
- 05Predictable taxation
What you need to know
- Lump-sum taxation is the Swiss regime of tax on expenditure
- It is calculated on living expenses, not worldwide income
- For wealthy new residents not working in the country
- The amount is agreed with the cantonal authorities
- A lawful, long-established tool
Common mistakes
- Planning the regime while working in Switzerland
- Not agreeing the amount with the canton
- Ignoring the differences between cantons
- Establishing tax residence incorrectly
- Not assessing whether the regime fits the situation
What this means for a BRIDGES client
We help wealthy clients assess and obtain Swiss lump-sum taxation: we choose the canton, properly establish tax residence and agree a predictable amount of tax. That way a move to Switzerland gives stability, privacy and a clear tax burden instead of tax on all worldwide income.
Frequently asked questions
01 /What is lump-sum taxation?
The Swiss regime of taxation on expenditure: tax is calculated not on worldwide income but on the resident’s annual living expenses. Hence a predictable amount.
02 /Who is the regime available to?
Wealthy new tax residents of Switzerland who do not work or carry on business in the country.
03 /How is the amount of tax determined?
On living expenses (with a set minimum), and the specific amount is agreed with the cantonal authorities. The conditions depend on the canton.
04 /Is it legal?
Yes, it is a lawful, long-established Swiss tool used by wealthy people who value stability and quality of life.
05 /Can you work in Switzerland under this regime?
No, the regime assumes no employment or business activity in the country. It is one of the key conditions.
06 /What makes the regime attractive?
A predictable tax instead of taxation of all worldwide income, as well as stability, privacy and a high quality of life in Switzerland.
See also
Read next
This material has undergone editorial review by BRIDGES.
Moving to Switzerland?
We will assess and set up lump-sum taxation: choosing the canton, residence, agreeing the amount — a predictable burden and quality of life.