Europe
Malta IP Box Regime
95% deduction yields effective 1.75% rate when nexus ratio is 1
Indefinite · Foreign income partly exempt
Europe
Switzerland Lump-Sum Tax (Forfait)
Switzerland's lump-sum taxation allows wealthy foreigners to pay tax based on their annual living expenses rather than actual worldwide income, with minimum tax bases varying by canton from CHF 400,000 to CHF 1 million.
Regime overview
- Status
- Active
- Type
- Preferential
- Duration
- Indefinite
- Highlight
- Tax based on living expenses, not actual income
Tax situation
Default Rates
- Eligibility
- Any resident
- Duration
- Indefinite
- Income Tax
- 22-45%
- Foreign Income
- Taxed
- Capital Gains
- None
- Dividends
- 35%
- Wealth Tax
- 0.1-0.9%
- Inheritance Tax
- Cantonal
Lump-Sum Tax (Forfait)
- Eligibility
- First-time OR not resident prior 10 years
- Duration
- Indefinite
- Income Tax
- Expense-based
- Foreign Income
- Exempt
- Capital Gains
- None
- Dividends
- Covered by lump sum
- Wealth Tax
- Expense-based
- Inheritance Tax
- None
| Tax Type | Default | Lump-Sum Tax (Forfait) |
|---|---|---|
| Eligibility | Any resident | First-time OR not resident prior 10 years |
| Duration | Indefinite | Indefinite |
| Income Tax | 22-45% | Expense-based |
| Foreign Income | Taxed | Exempt |
| Capital Gains | None | None |
| Dividends | 35% | Covered by lump sum |
| Wealth Tax | 0.1-0.9% | Expense-based |
| Inheritance Tax | Cantonal | None |
Key benefits
Tax based on living expenses, not actual income
Worldwide income shielded from taxation
Indefinite duration with no time limits
Requirements and considerations
First-time OR not resident in prior 10 years
Program details
Switzerland's lump-sum taxation (Besteuerung nach dem Aufwand, or "forfait") is a preferential tax regime for foreign nationals who establish residence in Switzerland but do not work there. Instead of paying tax on actual worldwide income and wealth, beneficiaries pay tax on their deemed living expenses.
The tax base is calculated as the higher of: (1) 7 times the annual rent or rental value of their Swiss residence; (2) 3 times the annual cost of hotel/pension accommodation; or (3) a minimum cantonal threshold (CHF 400K to CHF 1.0M depending on the canton). Federal law sets a minimum of CHF 400K , but many cantons set higher thresholds.
The actual tax paid depends on the canton of residence. Cantons like Geneva, Vaud, and Valais have maintained lump-sum taxation, while Zurich, Basel-Stadt, and others have abolished it.
Eligibility is restricted to foreign nationals who: (1) are establishing residence in Switzerland for the first time OR returning after at least 10 years abroad; (2) do not engage in any gainful activity in Switzerland; (3) apply within the first year of Swiss residence.
Interested in Lump-Sum Tax (Forfait)?
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Personal income tax rates (Federal)
ESTV/FTA - Direct Federal Tax·Last checked: 12/01/26
Personal income tax rates (Federal + Cantonal Calculator)
ESTV/FTA - Tax Calculator·Last checked: 12/01/26
Capital gains tax
PwC Tax Summaries - Switzerland Individual Other Taxes·Last checked: 12/01/26
Dividend taxation (Withholding tax)
ESTV/FTA - Anticipatory Tax (Swiss Withholding Tax)·Last checked: 12/01/26
Wealth tax
PwC Tax Summaries - Switzerland Individual Other Taxes·Last checked: 12/01/26
Inheritance/estate tax
ch.ch - Inheritance Tax in Switzerland·Last checked: 12/01/26
Foreign income treatment (Worldwide taxation)
PwC Tax Summaries - Switzerland Individual Taxes on Personal Income·Last checked: 12/01/26
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