Residence permit in Switzerland for investment in economy
Financially independent foreigners can qualify for Swiss residency by meeting certain conditions. Eligible applicants must be adults receiving income from overseas sources and willing to pay an annual lump-sum tax.
This tax can range from CHF 450,000 to CHF 1 million (USD 509,000 to USD 1.13 million). The final amount depends on the applicant’s income level and other factors. The residence permit is valid for 1 year. To maintain it, the resident must pay the required amount and reside in the confederation for at least 183 days a year.
The residency card for financially independent foreigners does not grant the right to employment or entrepreneurial activity within the country. However, it allows managing businesses and assets abroad.
In addition to the investor, the application can include a spouse and minor children. The entire family will have access to medical care in local clinics and education in some of the best schools and universities in the world. After 10 years of living in the country, residents can apply for citizenship through naturalisation.
Conditions for obtaining a residence permit in Switzerland
Foreign nationals applying for an investor’s residence permit in Switzerland must meet the following criteria:
- Age: 18 years or older;
- No outstanding criminal convictions;
- Residence outside the confederation for the past 10 years;
- Intention to relocate without employment within the chosen canton;
- Good financial standing, enabling the payment of the annual lump-sum tax.
Dependent applicants can include the investor’s relatives who have no outstanding criminal convictions. This can include a spouse and minor children.
Documents to obtain a residence permit in Switzerland
The basic documentation needed to obtain residency status and move to Switzerland includes:
- A valid passport;
- A type D visa (for entry into the confederation and application submission);
- A completed application form (the type of form depends on the chosen canton);
- A certificate of no criminal record;
- A rental contract or property ownership documents;
- Documents confirming a steady income from a foreign source.
Investor expenses
The most significant expense in obtaining residency status is the lump-sum tax. Its amount is calculated individually for each applicant based on their income, standard of living, and the chosen canton. The renewal of a residence permit in Switzerland requires the payment of this tax annually. The actual tax obligations can range from CHF 450,000 to CHF 1 million (from USD 509,000 to USD 1.13 million).
Additional expenses include contributions to the social security fund for each applicant over 18 years old. Contributions start at CHF 18,000 (USD 20,500). Residents must pay these contributions until their residence permit expires or until they reach the age of 65.
Other costs to consider are medical insurance, translation and notarisation of documents, legal services, and travel to the confederation. The final amount of expenses will also depend on the number of dependent applicants.
Swiss citizenship
There is no direct programme allowing foreigners to obtain citizenship by investment in Switzerland, but residency by investment can eventually lead to citizenship.
The primary and dependent applicants can apply for a passport in Switzerland after residing in the country for 10 years. Swiss law supports dual citizenship, so there is no need to renounce the original citizenship (if the other country also allows dual passports).
For minor residents who have lived in the confederation from ages 8 to 18, each year counts as two. They need a minimum of 6 years of residence to apply for citizenship in Switzerland.
A Switzerland passport grants the right to travel freely to 186 countries without obtaining a visa in advance and to live anywhere in the EU.
Tax regime in Switzerland
A tax resident of the confederation is a person who resides in its territory for 90 or more days. In some cases, this period is reduced to one month if the foreigner engages in professional activities within the state.
Tax resident status obliges individuals to pay tax on worldwide income (with the only exception being income from foreign real estate and businesses). Those who do not hold this status must pay taxes on income, professional profits, and property gains earned within the country.
In the country, taxation is carried out at the federal, cantonal, and municipal levels. For example, income tax rates can vary between 1.8–26%, depending on the canton chosen.
Foreign taxpayers can enter into agreements with the local government to have their taxes based on an estimated income rather than the standard system. This scheme is used in the residence permit programme for financially independent individuals.
One main condition of the programme is that the estimated income must be at least seven times the annual rental value of the applicant’s residence.
