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Switzerland lump sum taxation for South African nationals

South African citizens can seek Swiss residence through lump sum taxation, an expenditure based tax arrangement. This page explains the eligibility, the tax base and where to confirm the rules.

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Reference
Official authorityState Secretariat for Migration (SEM) and the cantonal tax administrations
ProgrammeSwitzerland Lump Sum Taxation
For nationalitySouth African
Information current as ofJune 2026
Official source →

Information, not advice. Figures are indicative and current as of June 2026. Always confirm the present rules with the official program authority and a licensed professional before you act.

Reviewed by the Passports for Kings editorial team. Last reviewed 16 May 2026.

Eligibility for South African nationals

South African citizens are eligible. Lump sum taxation, also called expenditure based taxation, is available to people who are not Swiss citizens, who take up residence in Switzerland for the first time or after at least ten years abroad, and who do not carry on gainful employment in Switzerland.

As nationals from outside the European Union and the European Free Trade Association, South Africans apply for the residence permit under Article 28 of the Federal Act on Foreign Nationals and Integration. This permit is granted at the discretion of the canton and the federal authorities.

Routes

This is an expenditure based tax arrangement combined with a residence permit. The tax is based on annual worldwide living expenses rather than actual income. A control calculation ensures the tax is at least as high as ordinary Swiss tax on Swiss source income and assets.

The taxable base must be at least seven times the annual rent or rental value of the main home, or three times the annual cost of board and lodging, and a federal minimum taxable base also applies. Not every canton offers the regime. Zurich, both Basel cantons, Schaffhausen and Appenzell Ausserrhoden have abolished it at the cantonal level, while cantons such as Geneva, Vaud, Valais and Bern continue to offer it.

Timeline

Processing commonly takes several months and varies by canton, since both a tax ruling and a residence permit are involved. Confirm current processing expectations with the relevant canton and the State Secretariat for Migration.

Costs

The defining cost is the agreed annual tax, which depends on the taxable base, the canton and the commune. Professional fees apply separately. Use the table as a checklist and confirm each current figure with the official authority.

ItemIndicative amountNotes
Minimum taxable baseAt least seven times annual rent or rental valueOr three times board and lodging cost
Federal minimum baseConfirm the current figure with the official authoritySet at federal level and indexed
Effective annual taxConfirm the current figure with the official authorityDepends on canton and commune
Professional feesVaries by caseSet independently, get a written scope

Figures are indicative and current as of June 2026. State Secretariat for Migration (SEM) and the cantonal tax administrations publishes the binding detail. Verify before you act.

Common questions

Can South African nationals use Swiss lump sum taxation?

Yes. As nationals from outside the European Union and the European Free Trade Association who do not work in Switzerland, South Africans can apply. Confirm your eligibility with the relevant canton.

Can I work in Switzerland under this regime?

No. Gainful employment in Switzerland is not allowed, although passive management of your own assets is permitted. Confirm the current rules with the authority.

Does every canton offer it?

No. Several cantons have abolished the regime at the cantonal level. Confirm availability with the canton you are considering.

Information, not advice. Figures are indicative and current as of June 2026. Always confirm the present rules with the official program authority and a licensed professional before you act.

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Information, not advice. Figures are indicative and current as of June 2026. Always confirm the present rules with the official program authority and a licensed professional before you act.

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