Switzerland Reports 496 Lump Sum Tax Residents, Russians Largest Group

Geneva is the top destination for Switzerland’s lump sum tax residents, while Russians make up the largest applicant nationality pool.

As of March this year, 496 non-EU/EEA nationals were living in Switzerland under the country’s Lump Sum Tax Residence Program, a 22% increase from 2023, according to data from the State Secretariat for Migration reported by Tagesanzeiger.

Swiss cantons grant residence rights to third-country nationals who negotiate a lump-sum annual tax – ranging from CHF 250,000 a year to CHF 1 million.

Russians constitute the largest nationality group, accounting for one in five lump sum tax residents, followed by Chinese and British at 10% each, and Americans with 8%.

These permits operate under Article 30 of the Foreign Nationals and Integration Act, which allows cantons to grant residence when “important public interests” exist. In practice, this translates to a tax-based entry system with varying thresholds across cantons.

The price of Swiss residency differs considerably depending on location. Obwalden, which hosts 5% of these tax residents, offers the most accessible entry point at approximately CHF 250,000 (USD 280,000) in annual taxes.

Geneva leads all cantons as the most favored destination, hosting a quarter of Switzerland’s lump sum tax residents. Valais follows at 12%, while Ticino accounts for 11%. The French-speaking canton of Vaud hosts 9%, and Zug, which demands the highest threshold of CHF 1 million (USD 1.12 million) in annual taxes, comprises 8%.

Zurich which demanded CHF 1 million (USD 1.12 million) in yearly taxes before authorities consider “fiscal interest” satisfied, hosts 2% of all permit holders.

The canton of Zurich abolished lump-sum taxation on January 1, 2010, following a public referendum in 2009 where voters decided to discontinue the regime for cantonal and communal taxes. Similarly, Basel-Stadt abolished lump-sum taxation on September 19, 2012, through a cantonal parliament decision that became effective in 2014.

The 12 individuals still registered in Zurich and 4 in Basel represent grandfathered cases. This allows individuals who already held lump-sum tax status before the abolition to maintain their preferential arrangements. Despite the abolition at the cantonal level, lump-sum taxation remains available for federal income tax purposes in both Zurich and Basel.