Normal System of Taxation – Not working in Switzerland
Posted: Wed Feb 19, 2025 10:32 am
The process is relatively straightforward for EU/EFTA nationals wanting to live, but not work, in Switzerland and taxed via normal system of taxation.
Individuals must have sufficient financial resources to live in Switzerland and ensure that they will not become dependent on Swiss welfare and they also need to take have Swiss health and accident insurance
For Non-EU/EFTA nationals the process is less straightforward but is achievable, under the correct circumstances.
Lump Sum Taxation – Not working in Switzerland
A non-Swiss national, who does not work in Switzerland, can apply for Swiss residency under the system of ‘Lump Sum Taxation’.
The taxpayer’s lifestyle expenses are used as a tax base instead of his/her global income and wealth. There is no reporting of global earnings and assets.
Once the tax base has been determined and agreed with the tax authorities, it will be subject to the standard tax rate relevant in that particular canton.
Work activities outside Switzerland are permitted. Activities relating to the administration of private assets in Switzerland can also be undertaken.
Third country nationals (non-EU/EFTA), may be required to pay a higher lump-sum tax on the basis of “predominant cantonal interest”. This will depend on a number of factors and varies case by case.
Individuals must have sufficient financial resources to live in Switzerland and ensure that they will not become dependent on Swiss welfare and they also need to take have Swiss health and accident insurance
For Non-EU/EFTA nationals the process is less straightforward but is achievable, under the correct circumstances.
Lump Sum Taxation – Not working in Switzerland
A non-Swiss national, who does not work in Switzerland, can apply for Swiss residency under the system of ‘Lump Sum Taxation’.
The taxpayer’s lifestyle expenses are used as a tax base instead of his/her global income and wealth. There is no reporting of global earnings and assets.
Once the tax base has been determined and agreed with the tax authorities, it will be subject to the standard tax rate relevant in that particular canton.
Work activities outside Switzerland are permitted. Activities relating to the administration of private assets in Switzerland can also be undertaken.
Third country nationals (non-EU/EFTA), may be required to pay a higher lump-sum tax on the basis of “predominant cantonal interest”. This will depend on a number of factors and varies case by case.