Switzerland lets some wealthy newcomers be taxed on their living expenses rather than worldwide income and wealth. The arrangement is tied to a residence permit and is not offered by every canton.
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.
Lump sum taxation, known in French as the forfait fiscal and in German as the Pauschalbesteuerung, lets eligible foreign nationals be taxed on an assumed expense base rather than on actual worldwide income and assets. It is set out in federal law and applied by the cantons, so the detail varies by location. The Swiss Federal Department of Finance describes the federal framework and each canton sets its own practice.
The arrangement is generally open to foreign nationals who take up Swiss tax residence for the first time, or after at least ten years abroad, and who do not carry on gainful employment in Switzerland. Swiss citizens cannot use it. For citizens of countries outside the European Union and European Free Trade Association, residence usually depends on a separate cantonal and federal permit approval, which is discretionary. Confirm eligibility for your nationality with the cantonal authority before acting.
There is no investment to make in the usual sense. The applicant negotiates the tax base with the chosen canton, secures a residence permit and registers locally. Permit type and validity depend on nationality and canton. Confirm current processing steps and timelines with the cantonal authority.
Lump sum taxation supports residence in Switzerland with a simplified tax basis. It is a tax and residence arrangement, not a citizenship programme. Several cantons, including Zurich, Basel Stadt, Basel Landschaft, Schaffhausen and Appenzell Ausserrhoden, have abolished the regime, so the choice of canton matters. Confirm which cantons currently offer it with the official authority.
| Item | Indicative amount | Notes |
|---|---|---|
| Federal minimum expense base, 2026 | 435,000 Swiss francs | Reported federal minimum base for federal tax |
| Alternative base measures | Seven times annual rent or rental value | Or three times the annual cost of board and lodging, whichever is higher |
| Cantonal minimum, examples | Geneva 500,000 and Vaud 450,000 Swiss francs | Cantons set their own minimum base |
| Actual tax due | Confirm with the official authority | Depends on the agreed base and local rates |
Figures are indicative and current as of June 2026. Swiss Federal Department of Finance and the cantonal tax authorities publishes the binding detail. Verify before you act.
It is generally for foreign nationals taking up Swiss tax residence for the first time or after at least ten years abroad, who are not gainfully employed in Switzerland. Swiss citizens are excluded. Confirm with the cantonal authority.
No. Several cantons have abolished the regime. Confirm the current list and terms with the Swiss Federal Department of Finance and the relevant canton.
No. It is a tax and residence arrangement. Swiss citizenship is a separate, lengthy process with its own residence requirements.
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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