Skiplink Navigation

Main Features

Lump-sum taxpayer numbers continue to grow

The number of lump-sum tax contributions by wealthy foreigners continued to grow in the 2008-2010 period.

There were 5,445 such taxpayers in 2010, an 8.8 per cent rise from 2008-2010, according to a study by the Conference of Cantonal Finance Ministers.

But that's less than in recent years. The number of such taxpayers grew by around 20 per cent in 2006-2008.

Receipts of tax income of foreigners, who live but don't work in Switzerland, grew by 15.6 per cent in the last two years, compared with 47.5 per cent in 2006-2008.

Lump-sum taxes have been a feature in Switzerland since 1920, allowing cantons to ignore the wealth and income of wealthy foreign residents as long as this has been earned abroad. Instead, cantons levy a charge typically based on five times the rental value of the resident’s property.

A concerted attack against tax breaks for wealthy foreigners has forced some cantons to increase lump-sum levies rather than lose them altogether.

In response, the government has recommended that lump-sum taxes should be raised to seven times the rental value of properties while only people with an income of at least SFr400,000 ($476,000) would qualify for a tax break.

Voters in Lucerne, St Gallen and Basel City will have their say on the issue in the coming months. and agencies

Neuer Inhalt

Horizontal Line

WEF 2018

WEF Teaser 2018

Why Switzerland struggles with dirty gold

subscription form

Form for signing up for free newsletter.

Sign up for our free newsletters and get the top stories delivered to your inbox.

Click here to see more newsletters