Swiss Residence Permit by Lump-Sum Taxation: The Ultimate Guide

Switzerland’s Lump-Sum Tax Residency is a special Swiss residence permit that is designed for wealthy foreign nationals who wish to live in Switzerland without working there. Through this program, residency is obtained through a negotiated tax arrangement with the cantonal authorities. 

Instead of being taxed on worldwide income and assets, residents under this system pay a fixed annual tax based on their worldwide living expenses. This is a system known as forfait fiscal or expenditure-based taxation. 

This article explains everything you need to know about qualifying for a Swiss residence permit by lump-sum taxation system, including who can apply, the required documents, how to get Swiss residency and more.  

• What is the Switzerland Lump-Sum Tax Residency? 
• Swiss Residence Permit by Lump-Sum Taxation Requirements 
• Eligible Dependents under the Swiss Lump-Sum Tax Residence 
• Calculation of Taxable Base for the Lump-Sum Taxation Switzerland 
• Switzerland Lump Sum Taxation Benefits 
• Required Documents for the Lump Sum Taxation Regime in Switzerland 
• Switzerland Lump-Sum Tax Residence Application Process 

The Switzerland Lump-Sum Tax ResidencY (forfait fiscal / Pauschalbesteuerung / imposition d’après la dépense) allows qualified foreign nationals to live in Switzerland and pay taxes based on their annual living expenses instead of their worldwide income or assets. The tax amount is negotiated with the canton and must meet federal minimum requirements, including a control calculation to ensure it is fair and compliant. 

Some cantons, such as Zurich, Basel-Stadt, Basel-Landschaft, Schaffhausen, and Appenzell Ausserrhoden, have abolished the program, but it is still available in most other cantons. 

The lump-sum tax agreement with the canton is used by immigration authorities to grant a standard Swiss residence permit or B permit. This permit allows the person to live in Switzerland without working and is valid for one year. The B permit is not a special type of permit; it is the same one given to any resident, but in this case it is issued because the applicant meets the Swiss residency requirements through the lump-sum tax arrangement and demonstrates financial self-sufficiency.

• Predictable taxation and financial privacy:  Under lump-sum taxation regime, applicants pay tax based on an agreed annual amount instead of reporting worldwide income and assets. 

• Residence in Switzerland: Successful applicants receive a Switzerland residency permit, usually a B-permit, allowing them to live in Switzerland long-term. 

• Schengen travel: The Swiss residency permit allows short-stay, visa-free travel across the Schengen Area. 

• Inclusion of family members: Spouses and dependent children can be included in the application, making the program suitable for families. 

• Attractive lifestyle: Residents enjoy great healthcare, education, security, and a high quality of life in Switzerland. 

• Pathway to permanence: Long-term residence and eventual Swiss citizenship are possible under ordinary Swiss residence and naturalization rules. 

• International reputation: Switzerland provides a stable, secure, and private base for high-net-worth individuals looking for diversification and protection. 

To qualify for Swiss residence through the Swiss residence program through lump-sum taxation, you must meet the following requirements:  

• Be over 18 years of age 
• Only for foreign nationals (non-Swiss citizens). If the person becomes a Swiss citizen, the lump-sum tax regime no longer applies and normal taxes are applied. 
• Must be moving to Switzerland for the first time or returning after at least 10 years away. 
• Cannot work or run a business in Switzerland. Passive management of assets is allowed. 
• Must have enough money to pay the agreed tax and support themselves and any dependents. 
• Must establish a primary residence in Switzerland and spend most of the year there, usually about 183 days, with Switzerland being the “center of life.” 
• Must be of good character with no serious criminal record or reputational risks. 

Under the lump-sum tax residence regime, dependents can be included if they live in the same household and are covered by the same tax agreement. Eligible family members include: 

• Spouse or registered partner 
• Children under 18 years of age 
• In some cases, children up to 25 years old who are unmarried and in full-time education, depending on the canton 

he tax base calculated through Switzerland’s lump-sum taxation is based on the applicant’s annual worldwide living expenses. This amount must pass a control calculation to make sure it is at least as high as the tax the person would pay on income and assets from Switzerland. This system is called expenditure-based taxation. 

The taxable amount cannot be lower than the highest of the following: 

• CHF 434,700, which is the federal minimum for 2025 and is adjusted each year. 
• Seven times the annual rent or rental value of the main Swiss residence. 
• Three times the annual cost of full board and lodging if living in a hotel or boarding situation. 
• Total Swiss-source income, including income from Swiss real estate, movable assets in Switzerland, copyrights or patents used in Switzerland, Swiss pensions, rents, annuities, or any income covered by a double taxation agreement. 

Which Global expenses are included in the calculation?  

• Food, clothing, and housing (including heating, cleaning, gardening) 
• Taxes and social charges 
• Housekeepers and allowances 
• Education and school-related costs for children, sports, and leisure 
• Holidays, travel, and medical treatments 
• Expensive pets, cars, boats, yachts, or planes 

The taxable base is determined each tax year; no deductions are allowed for extraordinary or non-recurring expenses 

Once the taxable base is calculated, it is taxed at the normal income tax rates of the canton and commune where the person lives. Some cantons can set higher amounts for their local taxes. The final tax amount is confirmed through a cantonal tax ruling and must also meet the control calculation requirements set by the Federal Department of Finance. 

Income tax rates in the cantons 2025

Applying for residence under the Swiss lump-sum taxation regime requires submitting a complete file with both immigration and tax documents. Requirements differ slightly by canton but usually include: 

• Valid passport for the applicant and dependents. 
• Civil status documents such as birth certificates and marriage certificates (if applicable). 
• Proof of accommodation in Switzerland, like a purchase deed or long-term lease. 
• Comprehensive health insurance valid in Switzerland. 
• Proof of sufficient financial means, such as bank references, proof of assets, or income to cover living expenses and agreed-upon taxes. 
• Clean criminal record certificates from countries of previous residence. 
• Residence application form for living without gainful employment (cantonal form following SEM guidance). 
• FTA Form 3 (Déclaration en vue de l’imposition d’après la dépense) for the cantonal tax authority. 
• Any additional documents requested by the canton authorities to verify integration, background, or finances. 

Step 01/ Initial contact with the canton 

The applicant or their legal/tax representative contacts the cantonal tax authority to discuss eligibility for lump-sum taxation. They provide a preliminary profile including family, background, and intended lifestyle. Expected annual living expenses in Switzerland and abroad are outlined to estimate the taxable base. 

Step 02/ Tax ruling negotiation 

The applicant submits Form 3 (Déclaration en vue de l’imposition d’après la dépense) to the canton, including: 

• Personal and family details 
• Estimated annual living expenses in Switzerland 
• Worldwide income and assets 
• Draft rental or purchase agreement for Swiss residence 

The canton reviews this information and negotiates the annual taxable base. Once agreed, the canton issues a tax ruling confirming the taxable base and total tax liability. This ruling is required for the Swiss residence permit application. 

Step 03/ Swiss residence permit application 

After the tax ruling, the applicant applies for a Swiss residence permit (B-Permit) at the cantonal migration office. The application includes: 

• Tax ruling confirmation 
• Passports for all applicants 
• Birth and marriage certificates 
• Proof of accommodation in the canton 
• Health insurance coverage 
• Proof of sufficient financial means 
• Police clearance certificates 

Step 04/ Cantonal decision and federal approval 

The canton checks that all requirements are met and grants preliminary approval. Non-EU/EFTA nationals must then get federal approval from the State Secretariat for Migration (SEM). Once approved, the canton issues entry authorization. 

Step 05/ Entry visa authorization 

If the applicant comes from a country that requires a visa, they must first get a Swiss National D-Visa before traveling. This visa is applied for at the Swiss Consulate in their home country and is issued once both the canton and federal authorities approve the residence request. The D-Visa allows the applicant to enter Switzerland legally to complete the residence process and collect their B-Permit. 

Step 06/ Issuance of residence permit 

• The B-Permit is issued to the applicant and included family members. It is usually valid for one year and can be renewed annually if: 
• The applicant continues to live in the same canton 
• The lump-sum taxation arrangement is maintained 
• No gainful employment is undertaken in Switzerland 

Step 07/ Arrival and registration 

Upon arrival, applicants must register at the local commune within 14 days. Registration requires: 

• Proof of address 
• Proof of health insurance 
• Biometric data for the residence card 

The processing time for the Swiss residence permit can take between 3 and 7 months from initial contact to residence permit issuance. However, some complicated cases or third-country nationals may require additional time for SEM approval.  

To qualify for Swiss citizenship, you will need to go through the regular naturalization process. To get a Swiss passport, applicants must:  

• Have completed 10 years of lawful residence in Switzerland. Years spent between ages 8 and 18 count double, but applicants must have lived at least 6 years in total. 
• Hold a C permit, also known as a permanent residence permit at the time of application. 
• Be integrated into Swiss society, respect public security and the constitution, and not depend on social assistance. 
• Demonstrate language skills: B1 level in speaking and A2 in writing in one of Switzerland’s national languages (German, French, Italian, or Romansh). 
• Meet any cantonal or communal residency requirements, as some communes require several years of local residence before applying. 

Permanent Residency Requirement 

Applicants must hold a C permit (permanent residence) before applying for Swiss citizenship. This usually requires: 

• 5 years of residence for EU/EFTA nationals 
• 10 years of residence for most third-country nationals 

Residents In Switzerland are taxed on worldwide income, while non-residents are taxed only on Swiss-source income. Under the lump-sum tax program, registering accommodation and obtaining a residence permit automatically establishes Swiss tax residency. Normally, a person becomes tax resident by living in Switzerland permanently or staying at least 30 days with work or 90 days without. For lump-sum residents, tax residency starts upon arrival and registration, with a genuine presence in Switzerland expected. 

Double Tax Treaties and the Lump-Sum Taxation System  

Switzerland has over 100 double taxation treaties. Tax payers under the lump sum taxation scheme can benefit from these treaties if they are recognized as Swiss tax residents and the income is taxed in Switzerland. Some countries, including Austria, Belgium, Canada, Germany, Italy, Norway, and the United States, limit treaty benefits for Lump-Sum residents unless the income from those countries is taxed under the normal Swiss system.