Swiss residence permit: the full guide

Legal grounds for residence

Investors can get a Swiss residence permit through financial independence. To do so, the applicant pays an annual lump-sum tax - on living expenses rather than income. The federal base in 2026 is at least $530,000 (435,000 francs), and the canton calculates the final tax individually.

The residence permit does not grant the right to work in the country. The investor can, however, manage their own international investment portfolio from Switzerland and run a business abroad.

How lump-sum taxation works

Lump-sum taxation (forfait fiscal) taxes living expenses rather than income, under Article 14 of the Federal Direct Tax Act. The taxpayer does not disclose worldwide income and assets; the canton computes tax on a notional base. In 2022, 3,478 people were taxed this way; in the referendum of 30 November 2014, 59.2% of Swiss voters refused to abolish the regime nationwide.

Who can be taxed on a lump-sum basis

How the base is calculated

The base is taxed at the ordinary cantonal and communal rates, and the result is fixed in a cantonal tax ruling. Annual tax can be below $130,000 (100,000 francs), depending on the canton and housing.

The residence permit: the main filter

The tax regime alone gives no right to live in Switzerland. European Union and EFTA citizens need only show means and health insurance. For others, including Russian, Ukrainian and Kazakh citizens, it is harder:

• Over 55 - with a personal link to Switzerland, no work in Switzerland or abroad, sufficient means and insurance.
• Under 55 - only if the canton considers the move important for its finances; in practice this usually needs tax of at least $250,000 (200,000 francs) a year, depending on the canton.

When it pays off

Lump-sum taxation pays off when worldwide income is many times higher than living costs. If income is comparable to the $530,000 (435,000 francs) base, ordinary taxation in a low-tax canton can be cheaper: the top income tax rate is 21.9% in Zug and 43.2% in Geneva. For comparison, Italy charges a new resident a flat $337,000 (300,000 euros) a year from 2026 on foreign income only.

What life under the lump-sum regime costs

The average health insurance premium rose by 4.4% in 2026, according to the Federal Office of Public Health, and differs noticeably between cantons. We calculate a family budget for the specific canton and home.

Documents and where to get them

• Passport and a biography describing the sources of wealth: we draft it together with you.
• Proof of means: bank and brokerage statements, documents on the sale of a business or an inheritance.
• A police certificate from the country of citizenship and residence, apostilled and translated.
• A lease or purchase agreement for a home in the chosen municipality.
• A Swiss health insurance policy or confirmation that it will be taken out after the move.
• The canton's advance tax ruling with the base and the amount of tax.
• For citizens from outside the European Union under 55, a letter from the canton on its fiscal interest in the move.
• For family members, apostilled marriage and birth certificates.

How to get approved the first time

• The applicant is a citizen from outside the European Union under 55, and the tax they are prepared to pay is not significant enough for the canton.
• The plan involves work in Switzerland, including in one's own company, which the lump-sum regime prohibits.
• The source of funds is poorly documented, or the bank refuses an account due to sanctions risk.
• The chosen canton has abolished the regime or sets a minimum base above the client's calculation.
• The applicant or a family member has a criminal record.

Most refusals are predictable, so we agree the canton and the tax amount before filing for the permit.

Wealth and inheritance tax

The lump-sum tax replaces income tax, while the canton calculates wealth tax on a notional base that is a multiple of the expenditure base. Inheritance and gift tax in Switzerland is cantonal: in most cantons spouses and children are exempt, and the canton of Schwyz has no such tax at all. On 30 November 2025, 78.3% of voters rejected an initiative for a 50% federal tax on estates above $61 million (50 million francs), so there is no nationwide inheritance tax.

Alternatives to Switzerland

Switzerland is the most expensive but gives the most predictable tax burden for years ahead: the amount is fixed in the canton's ruling before the move.

Where investment ends and work begins

The regime's main restriction is no paid activity in Switzerland. You can manage your own capital, receive dividends, interest and rental income, and work abroad. You cannot be employed in Switzerland, run a business here as an entrepreneur or be paid for a position in a Swiss company. If such activity appears, the right to the lump-sum regime is lost and the canton moves the person to ordinary taxation.

So before the move we look at what you will do in Switzerland and, if needed, move business management to a company abroad. This matters especially for entrepreneurs below retirement age who are not ready to step back entirely.

How the process works

1. Choosing a canton. We compare minimum bases, rates, housing and the canton's stance.
2. Advance tax ruling. The base and tax are agreed with the canton before the move.
3. Residence permit application. With proof of means, health insurance and ties to Switzerland.
4. Moving and communal registration. Renting or buying a home, mandatory health insurance.
5. Annual return. On the ruling base, with the control calculation.

Where to start

We start with the numbers: we compare the lump-sum tax and ordinary taxation in two or three cantons based on your income, capital and family. Then we agree the base and tax amount with the canton, find housing and only then file for the permit. This order protects against a situation where the permit is granted but the tax turns out higher than expected, and gives the family an exact annual budget before the move.

What we do

We calculate both lump-sum and ordinary taxation for different cantons, prepare the file for the advance ruling and permit application, and help with housing and registration. The tax and timeline are fixed before the move. Dollar amounts at market rates, rounded up: 1.21 dollars per franc on 17 October 2026 and 1.1229 dollars per euro on 20 October 2026.

Benefits of the Swiss residence permit

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