Lump-sum Taxation - Lump-sum taxation (Switzerland)

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.