Taxation on the basis of expenditure is intended for foreigners who transfer their residence for tax purposes to Switzerland without actually being employed here.

The special regulation of lump-sum taxation is available to resident foreign nationals who do not carry out any gainful employment in Switzerland.

The total income and assets are not taxed , but the taxpayer’s cost of living
is used as a substitute basis of assessment. It is therefore not necessary to declare the actual worldwide income and assets. Once the tax base has been determined, as explained below, it is then subject to the normal tax rates. The associated tax planning options can open up very attractive taxation prospects.

Prerequisites for lump-sum taxation
– No Swiss citizenship
– Having taken up residence in Switzerland for the first time or
after an absence of at least ten years
– Not gainfully employed in Switzerland
In the case of married couples, these requirements must be met by both spouses