This Switzerland Residency by Investment program requires you to pay a lump sum tax of CHF 200,000 (about USD 203,000) to the Swiss canton in where you live. Depending on the canton, this figure might reach to CHF 600,000 every year. You are not permitted to work under this Swiss lump sum taxation arrangement.
What exactly is the Swiss Residence Programme?
Swiss residency is gaining popularity among investors. Switzerland was named the world’s third best place to live in due to its strong economy and pleasant lifestyle. It also features stunning scenery, charming communities, and high Alps peaks for skiing and trekking. It’s no surprise that people from all over the world flock here.
The Swiss Golden Visa program provides several investment alternatives, ranging from lump sum tax payments to corporate investments.
While Switzerland offers permanent residency and Swiss citizenship as part of the scheme, investors must live in the country on a residence permit. In comparison to other nations, such as Malta or Portugal, the investment need is relatively high, with strict criteria.
In Switzerland, there are various types of resident categories, with a distinction established between EU or European Free Trade Association (EFTA) citizens and non-EU or non-EFTA nationals. EU or EFTA nationals can obtain a residence permit without difficulty if they have an employment agreement with a Swiss employer, become self-employed in Switzerland, or can demonstrate that they are financially independent with enough income or wealth to cover their living costs.
Non-EU or non-EFTA nationalities have extra difficulties in gaining residency, but it is still possible.
Switzerland Investor Visa financial requirements
There are two paths to residency and becoming a Swiss citizen under the Swiss citizenship by investment scheme. If you want to get a residence permit in Switzerland as a foreign national but not work, the Swiss Residence Program is for you.
Route 1: Swiss Lump Sum Taxation
The Swiss Lump Sum Taxation system allows for a reasonably rapid road to residency. If you are a wealthy individual or a retiree, this option is ideal for you. You can live in Switzerland with your family for a minimal yearly tax cost of CHF 250,000 or more (depending on Swiss canton and excluding Zurich), and there is no requirement to declare worldwide income and assets to the tax authorities.
Swiss Residence scheme, often known as the Swiss Golden Visa: Under this scheme, you must pay a lump sum taxation fee of CHF 200,000 to the Swiss canton where you live. This amount might range from CHF 400,000 to CHF 600,000 per year, depending on the canton. You are not permitted to work under this program.
In general, the lump sum taxes is computed by multiplying your annual rental income by five times your entire living expenditures (whichever is greater). This amount must be paid to the tax authorities.
Appenzler, Bern, Geneva, Fribourg, Graubunden, Jura, Nidwalden, Schwyz, St.Gallen, Vaud,Valais, Lucerne, Slothurn, Obwalden, Thurgau, Ticino, and Zug are the most popular Swiss cantons for this program.
Route 2: Establishing a Swiss corporation
Swiss Business Investor Program (or Swiss residency by investment): Non-EU nationals must start a Swiss company formation and establish a new Swiss firm or invest in an existing Swiss company with a minimum turnover of CHF 1 million.
To receive a residency permit, you must make a minimum investment of CHF 1 million in a pre-approved firm. When establishing a new business or subsidiary in Switzerland, you have the option of establishing a branch office or a separate legal organization in the form of a limited liability company or a stock corporation.
While the process is relatively simple, you must demonstrate that your investment benefits the Swiss community by either retaining existing jobs or creating full-time jobs for Swiss citizens. Your investment must be made in the canton where you will live and must be maintained throughout your stay.
Switzerland Golden Visa Residence Eligibility criteria:
- Be a non-EU citizen
- Be between the ages of 18 and 55
- Have a clean criminal record
- Be in good health
- Have an official source of income
- Show proof of finances
- Have owned or rented property in the country
The Advantages of the Swiss Golden Visa Program
As an incentive to encourage foreign investment, Golden Visa holders in Switzerland enjoy some unique perks. Here are some of the advantages of the Swiss Residence program:
- Relocating to Switzerland: During the validity of the residence permit, the investor and their family gain the right to reside in Switzerland. A residence permission card is typically good for one year. It is extendable if you live in the nation for 183 days out of the year.
- Schengen visa-free travel to Schengen nations: Switzerland is a member of the Schengen Zone. As a result, Swiss residents can travel other Schengen countries and stay for up to 90 days out of 180 without a visa.
- Access to high-quality education and healthcare: Switzerland’s schools and universities are regarded as among the best in the world. There, the investor’s children can receive a good education.
- Healthcare: A Swiss resident permit entitles the holder access medical treatment in local clinics or institutions of other Schengen countries without the need for a medical visa. Citizenship is granted after ten years of residence in the country.
- Citizenship: After ten years of permanent residence in Switzerland, the investor and their family can apply for citizenship. Because the country’s legislation allows dual citizenship, you will not be required to give up your first citizenship unless required by the law of the first citizenship country.
A year counts for two for children aged 8 to 18 living in Switzerland. To apply for citizenship, they must have lived in Switzerland for at least 6 years.
Switzerland citizenship permits you to travel to 186 countries without a visa and dwell in EU countries without acquiring a residence permit.
Tax reduction
In some circumstances, paying a lump-sum tax is preferable to paying a tax on total income. The source country and Switzerland, however, must have a Double Taxation Treaty.
