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Switzerland Reports 496 Lump Sum Tax Residents, Russians Largest Group · IMI Podcasts

• 0:00
  SPEAKER_00: As of March this year, 496 non-EU or EEA nationals were living in Switzerland under the country's Lump Sum Tax Residence Program, a 22% increase from 2023, according to data from the State Secretariat for Migration reported by Tagazanzeiger.
• 0:18
  SPEAKER_00: Swiss cantons grant residence rights to third country nationals who negotiate a lump sum annual tax, ranging from 250,000 Swiss franc a year to 1 million Swiss franc.
• 0:32
  SPEAKER_00: Russians constitute the largest nationality group, accounting for one in five lump sum tax residents, followed by Chinese and British at 10% each, and Americans with 8%.
• 0:45
  SPEAKER_00: These permits operate under Article 30 of the Foreign Nationals and Integration Act, which allows Cantons to grant residence when important public interests exist.
• 0:56
  SPEAKER_00: In practice, this translates to a tax-based entry system with varying thresholds across cantons.
• 1:03
  SPEAKER_00: The price of Swiss residency differs considerably depending on location.
• 1:07
  SPEAKER_00: Obwalden, which hosts 5% of these tax residents, offers the most accessible entry point at approximately 250,000 Swiss franc,000 US dollars in annual taxes.
• 1:22
  SPEAKER_00: Geneva leads all cantons as the most favored destination, hosting a quarter of Switzerland's lump sum tax residents.
• 1:29
  SPEAKER_00: Valais follows at 12%, while Ticino accounts for 11%.
• 1:35
  SPEAKER_00: The French-speaking canton of Vaud hosts 9%, and Zug, which demands the highest threshold of 1 million Swiss franc, or 1.12 million US dollars in annual taxes, comprises 8%.
• 1:50
  SPEAKER_00: Zurich, which demanded 1 million Swiss franc, or 1.12 million US dollars, in yearly taxes before authorities consider fiscal interest satisfied, hosts 2% of all permit holders.
• 2:04
  SPEAKER_00: The Canton of Zurich abolished lump sum taxation on January 1, 2010, following a public referendum in 2009, where voters decided to discontinue the regime for cantonal and communal taxes.
• 2:18
  SPEAKER_00: Similarly, Basel Stadt abolished lump sum taxation on September 19, 2012, through a cantonal parliament decision that became effective in 2014.
• 2:30
  SPEAKER_00: The 12 individuals still registered in Zurich, and four in Basel represent grandfathered cases.
• 2:37
  SPEAKER_00: This allows individuals who already held lump sum tax status before the abolition to maintain their preferential arrangements.
• 2:45
  SPEAKER_00: Despite the abolition at the cantonal level, lump sum taxation remains available for federal income tax purposes in both Zurich and Basel.
• 2:55
  SPEAKER_00: This episode first appeared as an article by Ahmad Abbas on IMIDaily.com.
• 3:01
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• 3:08
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