Switzerland still is one of the most attractive countries. However the conditions for relocating to Switzerland are complex. Especially non-EU/EFTA nationals have several restrictions to consider, e.g. residence permits distinguishing between permits for EU/EFTA and non-EU/EFTA nationals, restrictions in acquisitioning of real estate, etc.

But Switzerland also has an interesting taxation possibility: Non-Swiss national residents in Switzerland who were not resident in Switzerland during the last 10 years and who don’t engage in gainful activities in Switzerland can choose between ordinary taxation based on worldwide income and assets or the more beneficial flat rate taxation based on expenses.

The expenses for living are considered to be at least as high as 3 times the price paid for lodging in Switzerland, or 7 times the rental costs or 7 times the possible rental revenue from renting one’s property to third parties. Except from this general rule, each canton has its own rules and minimum assessment base to be set. There is a wide range of minimum assessment bases, starting from CHF 100’000 payable taxes per year (excl. social security insurances).

The regulation for the flat rate taxation stipulates that the basis for the tax must however be equal to or higher than the aggregate gross amount of all earnings from Swiss sources.

With the flat rate taxation there is no focus on the world wide income respectively assets.

For more detailed information/factsheets please feel free to contact us.