Who Can Apply for Swiss Residency by Lump-Sum Taxation?

Switzerland is globally renowned for its political neutrality, economic stability, high quality of life, and beautiful landscapes. For high-net-worth individuals seeking to relocate to Switzerland without engaging in gainful employment, the Swiss lump-sum taxation regime—also referred to as residency by investment in Switzerland or the Swiss golden visa—presents an attractive route to Swiss residency.

This post explores in detail who can apply for Swiss residency by lump-sum taxation, outlining the key eligibility criteria and the typical applicant profiles suitable for this special residence permit.

Understanding the Swiss Lump-Sum Taxation Route

The Swiss residence permit by lump-sum taxation enables foreign nationals to acquire Swiss residency on the basis of a fixed annual tax payment, rather than being taxed on their worldwide income and assets. This route, also known as Switzerland residence by investment or Switzerland golden visa, is not a traditional investor visa; applicants are not required to make a specific capital investment in Switzerland. Instead, the residence permit is granted in exchange for agreeing to pay a predetermined annual tax, calculated based on living expenses rather than actual income.

Key Eligibility Requirements for Lump-Sum Taxation in Switzerland

The Swiss lump-sum taxation scheme is available only to individuals who meet specific legal and financial criteria. To be eligible to apply for Swiss residency through lump-sum taxation, applicants must satisfy the following core requirements:

1. Nationality and Residence Status

To apply for a Swiss residence permit by lump-sum taxation, the applicant must be a national of a non-EU/EFTA country. EU/EFTA citizens are generally excluded from this route, unless they are not economically active and are willing to be treated in the same manner as third-country nationals. Importantly, applicants must not have been a tax resident in Switzerland within the past 10 years.

2. No Gainful Activity in Switzerland

Applicants must not carry out any form of gainful employment or commercial activity within Switzerland. This prohibition includes both employment and self-employment. However, the applicant may continue to manage or derive passive income from foreign business interests, real estate portfolios, or financial investments, provided these activities are based outside Switzerland and do not constitute work performed from within Swiss territory.

3. Financial Means and Lifestyle

Applicants must demonstrate that they have sufficient financial means to support themselves and their families without taking up employment in Switzerland. In practice, this means having significant worldwide wealth or income. The exact amount is not prescribed by law but must be sufficient to meet both the cost of living in Switzerland and the agreed annual tax contribution. In many cantons, the minimum lump-sum tax is based on at least seven times the applicant’s annual Swiss rental value or deemed living expenses, with a federal minimum typically starting at CHF 400,000 in tax contribution annually.

4. Cantonal Approval and Residence Location

Switzerland is a federal state, and the lump-sum taxation scheme is administered at the cantonal level. Not all Swiss cantons offer the lump-sum taxation route. Popular cantons for this regime include Valais, Vaud, Ticino, Geneva, Fribourg, and Lucerne. Applicants must choose to reside in a canton that permits lump-sum taxation and obtain the prior consent of that canton’s tax authority before submitting their residence permit application.

Who is the Swiss Lump-Sum Taxation Route Suitable For?

The Swiss residency by investment (lump-sum taxation) route is specifically tailored to attract high-net-worth individuals who are seeking a prestigious European residence without the requirement to establish a business or take up employment in the host country. The following applicant profiles are typically best suited to this route:

Retired High-Net-Worth Individuals

Retired individuals who have substantial assets and no intention to work in Switzerland may benefit significantly from the lump-sum taxation system. This includes wealthy retirees from countries such as the United States, the United Kingdom, and the Middle East, who wish to enjoy the safety, healthcare, and lifestyle benefits that Switzerland offers.

Entrepreneurs and Investors with Global Holdings

Global entrepreneurs and investors who maintain international business operations but do not need to be physically involved in day-to-day management may qualify, provided they refrain from engaging in Swiss business activities. This route enables them to reside in a stable and neutral jurisdiction while managing foreign interests remotely.

Family Offices and Private Wealth Holders

Individuals or families managing substantial private wealth, family offices, or investment portfolios often choose the Swiss golden visa via lump-sum taxation for its discretion, legal predictability, and efficient tax planning opportunities. Switzerland's reputation for privacy and financial security further enhances its appeal to such clients.

International Personalities and Celebrities

Public figures, artists, authors, or athletes who earn income from intellectual property, royalties, or global sponsorship deals—but who do not need to base their professional work in Switzerland—may be eligible for residence under the lump-sum taxation regime. Switzerland offers a peaceful and private living environment, often sought after by individuals in the public eye.

Residency Rights and Taxation Agreement

Once approved, the applicant receives a Swiss residence permit—initially valid for one year and renewable annually—subject to continued compliance with the agreed tax terms and absence of gainful activity. The lump-sum taxation is formalised through a negotiated tax ruling with the relevant cantonal authority, setting out the minimum taxable income and resulting tax liability. This allows applicants to secure clarity and stability in their Swiss tax affairs for future planning.

Conclusion: Is the Lump-Sum Taxation Route Right for You?

The Swiss lump-sum taxation visa offers a compelling route to residence for wealthy individuals who meet the eligibility criteria and value the lifestyle, neutrality, and legal certainty that Switzerland provides. However, successful applications require careful structuring, a clear understanding of cantonal rules, and strong supporting evidence of the applicant’s financial self-sufficiency.

At Richmond Chambers Switzerland, we specialise in assisting high-net-worth individuals to secure residency in Switzerland by investment, including through the lump-sum taxation scheme. If you would like expert advice on your eligibility or support with the application process, please call our lump-sum taxation lawyers in Switzerland on +41 21 588 07 70, email info@richmondchambers.ch or complete an online enquiry form.