Switzerland's Lump Sum Tax Residency Sees 22% Rise

Switzerland’s Lump Sum Tax Residence Program counted 496 non-EU/EEA nationals as of March 2025, reflecting a 22% increase over the last year. The program allows wealthy third-country nationals to live in Switzerland without declaring global income, provided they pay a pre-agreed fixed annual tax.

Geneva tops the list as the most preferred canton, hosting a quarter of all lump-sum tax residents in the country. The canton offers political stability and a central location, but also imposes some of the higher tax requirements, making its popularity particularly notable.

This tax-based residency route operates under Article 30 of the Foreign Nationals and Integration Act, which permits cantons to issue residence permits if there’s an “important public interest.”

In practice, that’s been interpreted as substantial fiscal contribution. Tax thresholds vary by canton, ranging from CHF 250,000 to CHF 1 million annually, depending on location and negotiation.

Nationality Breakdown and Cantonal Distribution

Russians represent the largest nationality group under this system, making up 20% of permit holders. Chinese and British nationals each account for 10%, while Americans follow at 8%.

Beyond Geneva (25%), other cantons attracting these residents include:

• Valais – 12%
• Ticino – 11%
• Vaud – 9%
• Zug – 8%, with the highest tax entry point of CHF 1 million annually
• Obwalden – 5%, the most affordable route at around CHF 250,000 per year

At the other end of the spectrum, Zurich and Basel-Stadt have abolished lump-sum taxation for cantonal and communal taxes, though a small number of residents remain under federal tax terms.