Lump-sum taxation

Numerous wealthy people have chosen to move to Switzerland because of the many tax benefits that they can rely on. One of these benefits is lump-sum taxation.

Lump-sum taxation, also known as expenditure-based taxation, is a simplified, favourable tax scheme aimed at foreign nationals.
It is a tax scheme that guarantees an annual fixed tax based on the expenditure of the taxpayer.

This tax is not calculated on the income and actual wealth of the taxpayer but on a basis negotiated with the Swiss tax authority in relation to objective factors such as lifestyle expenditure.

The undeniable benefit of the Swiss lump-sum taxation rests on the predictability of the tax. The tax amount in known in advance. The taxpayer knows exactly how much to pay which precludes any nasty surprises.