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Lump sum taxation comes under pressure

Appenzell Outer Rhodes has become the third canton to abolish lump sum taxation for wealthy foreign residents.

A clear majority of voters on Sunday approved the proposal by the centre-left Social Democrats, according to official results.

In a similar ballot in canton Lucerne, voters rejected abolition. They opted instead to increase the tax rate to seven times the annual rental value of the residence, instead of the current five.

Over the past two years, cantons Zurich and Schaffhausen have voted to do away with the preferential tax system, while St Gallen and Thurgau have raised their tax level.

Further cantonal votes are scheduled later this year. Moves are also underway at a federal level.

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SWI - a branch of Swiss Broadcasting Corporation SRG SSR

SWI - a branch of Swiss Broadcasting Corporation SRG SSR