Switzerland Residence Permit for Financially Independent Persons

(Lump-Sum Taxation)

Overview:
Switzerland does not offer a standard "golden visa" program. However, affluent foreign nationals may obtain a residence permit under the lump-sum taxation (forfait fiscal) scheme. This arrangement involves paying an annual fixed tax based on living expenses rather than actual worldwide income and is suitable for individuals who do not intend to work in Switzerland.

Processing Time:
The coordination process with the chosen canton and federal authorities takes several months. Upon signing the tax agreement, a Category B residence permit is issued, which is renewed annually.

Pathway to Citizenship:
Eligibility to apply for Swiss citizenship arises after 10 years of permanent residence. For children aged 8 to 18, each year of residence counts as two.

Eligible Family Members:
Spouse and children under 18. Spouses must meet the requirements individually and obtain separate permits.

Key Benefits:

• Right to reside in a safe country with a high standard of healthcare and education.
• Freedom to travel within the Schengen Area (90/180-day rule).
• Access to top-tier schools, universities, quality healthcare, and developed infrastructure.
• After 10 years: eligibility for Swiss citizenship, granting visa-free access to 186 countries.

Physical Presence Requirement:
To maintain the permit, the holder must reside in Switzerland for a minimum of 183 days per year.

Minimum Tax / Financial Commitment:

• The lump-sum tax is calculated based on the family's annual living expenses in Switzerland. The taxable base must be at least seven times the annual rental value or imputed rental value of the owned property.
• The minimum federal taxable base is CHF 434,700.
• Effective tax rates vary by canton. The total annual tax burden for non-EU/EFTA nationals typically ranges from CHF 450,000 to CHF 1,000,000.
• In addition to the core tax, mandatory social security contributions apply (approximately CHF 18,000 per adult annually).

Eligibility Criteria:

• The applicant and spouse must not be Swiss citizens and must not have been resident in Switzerland for the last 10 years.
• Employment or self-employment in Switzerland is prohibited. Managing one's own wealth from abroad is permitted.
• Applicants must demonstrate sufficient financial resources and obtain mandatory Swiss health insurance.
• Foreign nationals under 55 may only obtain the permit if they represent a significant fiscal interest for the canton (minimum annual tax typically starting from CHF 200,000).

Residence Permit Terms:
The Category B permit (Financially Independent Person) grants the right to live in Switzerland but does not permit employment. After 5 years, and subject to conditions, one may obtain a Category C permit (permanent residence).

Taxation:
The lump-sum tax replaces income and wealth tax on a federal level. The taxable base is derived from living expenses but cannot be lower than the minimum threshold set by the canton. A cantonal wealth tax may apply to a portion of one's assets.