Swiss Lump-Sum Taxation 2026: Residence & Minimum Tax

Switzerland has no “golden visa”. What attracts wealthy foreigners is lump-sum taxation (Besteuerung nach dem Aufwand, also called the expenditure-based tax or “forfait”): instead of paying tax on your actual income and wealth, you pay tax on your living costs, negotiated with the canton where you live. It is a tax arrangement, not an investment program. Your right to live in Switzerland is a separate question, decided under immigration law. You need both.

Part 1: The tax and who can use it

According to the Federal Department of Finance and the Federal Tax Administration (ESTV), you can be taxed on expenditure if you:

are not a Swiss citizen;
are taxable in Switzerland for the first time, or after at least ten years’ absence; and
do not work in Switzerland. Any gainful activity in Switzerland, a main or side occupation, from which you earn income in Switzerland or abroad, excludes you; the guidance names writers, inventors, actors, musicians and athletes performing in Switzerland as examples.

The right ends if you acquire Swiss citizenship or start working in Switzerland. Non-working residents without a Swiss domicile become tax-resident after more than 90 days in Switzerland, from the first day.

How the taxable base is set

The tax is based on your annual living costs in Switzerland and abroad, and those of the people you support, but never less than the highest of these minimums (federal guidance, tax period 2025):

a fixed amount of CHF 434,700;
for people with their own household, seven times the annual rent or the rental value of their own home; or
for others, three times the annual cost of board and lodging.

Ordinary tax rates apply to that base. A control calculation makes sure the tax is not lower than the ordinary tax on certain Swiss-source income and on income for which you claim relief under a tax treaty. The federal minimum is adjusted periodically, and each canton sets its own minimums and rates, so the amount you would actually pay is negotiated and we do not quote a single figure.

Where it is available

It is a cantonal decision. Zurich abolished it at the start of 2010 after a 2009 referendum; Schaffhausen, Appenzell Ausserrhoden, Basel-Landschaft and Basel-Stadt followed. Thurgau, St. Gallen, Lucerne and Bern kept it with stricter rules. The federal reform took effect for cantonal taxes on 1 January 2014 and for the direct federal tax on 1 January 2016; people already taxed this way kept the old rules until 31 December 2020. At the end of 2018, 4,557 people were taxed this way, paying CHF 821 million in total, fewer than one in a thousand taxpayers.

Part 2: The right to live in Switzerland

The tax agreement does not by itself give you a residence permit. For people from outside the EU/EFTA, the federal immigration rules provide two main routes for someone who does not work:

Retirees (Article 28 of the Foreign Nationals and Integration Act, AIG): a person who no longer works may be admitted if they have reached the minimum age, have special personal ties to Switzerland and have the necessary financial means. The Ordinance (VZAE, Article 25) sets the minimum age at 55; special personal ties include longer previous stays in Switzerland (holidays, education or work) or close relationships with near relatives living there; no gainful activity in Switzerland or abroad other than managing your own assets; and financial means above the level that would entitle a Swiss person to supplementary benefits.
Important public interests (Article 30(1)(b) AIG): a permit can be granted for important public interests. The Ordinance (VZAE, Article 32) lists, among the factors to consider, significant cantonal fiscal interests. This is the provision under which a canton’s own fiscal interest can be taken into account.

Both routes are discretionary and handled by the canton. We do not describe cantonal practice in detail here because it varies and changes; we check it for your canton and your profile.

What it does not give you

It does not authorise you to work in Switzerland.
It is not a fast route to citizenship; acquiring Swiss citizenship ends lump-sum taxation, and naturalisation follows federal and cantonal rules.
It requires real presence: Switzerland has to be your tax residence.
EU and EFTA nationals fall under different rules for residence.

How GoldPassports helps

We assess whether lump-sum taxation and a Swiss permit make sense for your family and tax position, introduce you to Swiss tax and immigration counsel, and coordinate the application with the canton. If the numbers do not work, we will say so and show you alternatives.

Which countries is the Switzerland Residence by Lump-Sum Taxation most popular in?

Where most applicants and prospective investors come from, based on how much interest each country shows.

Frequently asked questions

Is there a Swiss golden visa?

No. Switzerland has no residence-by-investment program. Lump-sum taxation is a tax arrangement agreed with a canton, and the residence permit is handled separately under immigration law.

How much does lump-sum taxation cost?

There is a minimum taxable base. For direct federal tax the Federal Tax Administration's 2025 guidance sets it at the highest of CHF 434,700, seven times the annual rent or rental value, or three times the cost of board and lodging for people without their own household. Cantons set their own minimums and rates, and the final amount is negotiated.

Who is eligible for the tax?

Foreign nationals who take up Swiss tax residence for the first time, or return after at least ten years abroad, and who do not work in Switzerland.

Can I work in Switzerland?

No. Taking up gainful employment in Switzerland ends the right to lump-sum taxation.

Do I need a residence permit separately?

Yes. The tax agreement does not by itself give you the right to live in Switzerland. For non-EU/EFTA nationals who do not work, the federal rules provide, among others, the retiree route (minimum age 55, special ties to Switzerland, sufficient means) and a route for important public interests that lists significant cantonal fiscal interests as a factor.

Do all cantons offer it?

No. Zurich, Schaffhausen, Appenzell Ausserrhoden, Basel-Landschaft and Basel-Stadt have abolished it. Other cantons have kept it, some with stricter rules.

Does it lead to Swiss citizenship?

Not directly. Swiss naturalisation follows federal and cantonal rules, and acquiring Swiss citizenship ends lump-sum taxation.

How many people use it?

At the end of 2018, 4,557 people were taxed this way, paying a total of CHF 821 million, according to the Federal Department of Finance.

Related updates

Which golden visas and citizenship-by-investment programs are still open in 2026? 17 Oct 2026

Official sources

Figures on this page come from the sources below and were last verified on 16 October 2026. Rules change; always confirm the current position before investing.

Options with a similar profile or budget, so you can compare before you decide.