Switzerland lump-sum taxation (2026): forfait fiscal, minimums and cantons

Tax & Residency
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Switzerland’s lump-sum taxation (expenditure-based taxation, or “forfait fiscal”) lets a foreign national who moves to Switzerland and does not work there be taxed on their annual living costs, not on their worldwide income and wealth. For the federal tax in 2026, the taxable base must be at least CHF 435,000, or seven times your annual rent or the rental value of your home if higher. Each canton sets its own minimum, from CHF 250,000 in Valais to CHF 600,000 in Schwyz. Five German-speaking cantons, including Zurich, have abolished it.

Last checked: October 2026

In short:

  • You qualify only if you are not Swiss, are taking up Swiss residence for the first time or after at least 10 years abroad, and do not work in Switzerland; for a married couple, both spouses must meet the conditions.
  • The federal minimum base is CHF 435,000 for tax year 2026; cantonal minimums include Valais CHF 250,000, Vaud CHF 415,000, Geneva CHF 426,357, Ticino CHF 434,700, Zug CHF 500,000 and Schwyz CHF 600,000.
  • Zurich, Schaffhausen, Appenzell Ausserrhoden, Basel-Landschaft and Basel-Stadt no longer offer it; non-EU nationals under 55 usually need the canton to confirm an important fiscal interest before a B permit is issued.

How lump-sum taxation works

The Federal Department of Finance (FDF) describes it simply: tax is “calculated on the basis of the total annual cost of living expended by the taxpayers in Switzerland and abroad for themselves and their dependents.” The ordinary tax rates are then applied to that figure, not to your actual income.

In practice, the taxable base is the highest of:

  • your actual annual worldwide living expenses for you and your dependants;
  • seven times your annual rent, or seven times the rental value of a home you own, if you run your own household;
  • three times the annual price of board and lodging, if you live in a hotel or similar;
  • the statutory minimum (federal, and separately cantonal).

The rent multiples come from the cantonal rules (for example Zug, Valais, Geneva and Ticino on the ESTV cantonal sheets, 2026) and mirror the federal rule. For most wealthy residents, the statutory minimum or the seven-times-rent test sets the base.

The tax is then levied at three levels: federal, cantonal and communal. A ruling with the cantonal tax administration before you move is standard practice. Lindemann Law notes that initial rulings are generally valid for five years and can be renewed.

Who qualifies

The FDF sets out the conditions. You must:

  • not be a Swiss citizen. The right ends if you naturalise.
  • take up tax residence in Switzerland for the first time, or return after at least ten years spent outside the country.
  • not be gainfully employed in Switzerland. The right ends if you start working there.

Schwyz’s guidance adds that for married couples, both spouses must meet all the conditions.

“No gainful activity in Switzerland” is strict. A 2022 Swiss Federal Audit Office report found at least five cases of prohibited gainful activity across the cantons it reviewed. It also found that ten cantons allowed board fees of CHF 10,000 to CHF 12,000 a year, with varying restrictions. If you plan to sit on Swiss boards or run a Swiss company, take advice first. Managing your own foreign business from Switzerland raises the same question.

Minimum tax base by level

Level Minimum taxable base (income) Wealth tax treatment Source date
Federal (direct federal tax) CHF 435,000 (tax year 2026) No federal wealth tax ESTV, October 2025
Valais CHF 250,000 Wealth tax on at least 4 times the income base ESTV cantonal sheet, March 2026
Vaud CHF 415,000, including a 15% uplift to cover wealth tax Covered by the uplift; rent tests also increased by 10% ESTV cantonal sheet, February 2026
Geneva CHF 426,357 (indexed for 2026) 10% surcharge on the expenditure base ESTV cantonal sheet, February 2026
Ticino CHF 434,700 (indexed annually to consumer prices) Wealth tax on at least 5 times the income base ESTV cantonal sheet, September 2026
Zug CHF 500,000 Wealth tax on at least 20 times the income base ESTV cantonal sheet, March 2026
Schwyz CHF 600,000 Wealth tax on at least 20 times the income base ESTV cantonal sheet, February 2026

The federal minimum is indexed for inflation. The ESTV’s 2025 circular attaching the cold-progression ordinance sets the Article 14 DBG amount at CHF 435,000. Lindemann Law reported CHF 421,700 from 1 January 2023, so it has risen since then. Most cantons also apply other minimums or multiples; check the current cantonal sheet before you compare.

Cantons that have abolished it

According to the FDF, five cantons abolished lump-sum taxation:

  • Zurich (from 2010)
  • Schaffhausen
  • Appenzell Ausserrhoden
  • Basel-Landschaft
  • Basel-Stadt

The FDF adds that Thurgau, St. Gallen, Lucerne and Bern kept it but tightened the rules. Lindemann Law names Zug, Schwyz, Ticino, Graubünden and Bern among the popular cantons; Vaud, Geneva and Valais also offer it.

The control calculation

Lump-sum tax cannot be lower than ordinary tax on your Swiss-source income and assets. This is the control calculation. The FDF says it ensures the tax does not fall below what regular rates would charge on Swiss-source income and specified wealth items.

The ESTV cantonal sheet for Vaud lists the items included in the control calculation:

  • Swiss real estate and the income from it;
  • Swiss movable assets and their income;
  • capital investments in Switzerland and their income;
  • Swiss patents and similar rights, and their income;
  • Swiss-source pensions and annuities.

In other words, if you hold a large Swiss portfolio or Swiss property, ordinary tax on those may exceed the lump sum, and you pay the higher amount.

Wealth tax

There is no federal wealth tax, but cantons levy one. Under lump-sum taxation it is usually calculated on a deemed wealth figure, not your actual net worth. The methods vary:

  • Zug and Schwyz: wealth tax on at least 20 times the income base. At Schwyz’s CHF 600,000 minimum, that is a deemed CHF 12 million.
  • Valais: at least 4 times the income base.
  • Ticino: at least 5 times the income base.
  • Vaud: a 15% uplift is built into the CHF 415,000 minimum to cover wealth tax.
  • Geneva: a 10% surcharge on the expenditure base.

The control calculation also includes Swiss assets, so wealth held in Switzerland still counts.

Residence permits for non-EU nationals

The tax regime does not give you the right to live in Switzerland. You need a residence permit, normally a B permit.

  • EU/EFTA nationals can use free movement as non-workers, provided they have sufficient financial means and full health and accident insurance, according to Appenzell Innerrhoden’s guidance on the permit process.
  • Non-EU nationals aged 55 or over can apply as retirees under Article 28 of the Foreign Nationals Act, if they have special personal ties to Switzerland and enough money.
  • Non-EU nationals under 55 generally rely on Article 32(1)(c) of the Ordinance on Admission, Residence and Gainful Employment (VZAE), which lets a canton grant a permit outside quotas for important fiscal reasons. The canton decides, and the State Secretariat for Migration (SEM) must approve.

In the process described by Appenzell Innerrhoden, the application goes to the cantonal tax administration and the economic development office before going to the SEM. Cantons set their own expectations for the tax they want to see. Ask the canton early; we could not confirm any canton’s current figure on an official page.

Who it suits

It can suit:

  • Wealthy non-Swiss people with large foreign income and assets who want a predictable Swiss tax bill and a high-quality base.
  • Retirees and investors who do not need to work in Switzerland.
  • Families wanting long-term residence, with no fixed end date: the regime continues while you meet the conditions.

It is less likely to suit:

Leaving your current country can trigger exit tax or continued tax residence. Read Exit tax explained: which countries charge it when you leave and Tax residency explained: why the 183-day rule is a myth for most countries.

Related guides: Low-tax residency for high earners (2026): 14 regimes compared · Italy flat tax for new residents (2026): lump-sum regime, cost, who it suits · Greece non-dom regime (2026): €100,000 flat tax, investment and how to apply · Exit tax explained: which countries charge it when you leave · Tax residency explained: why the 183-day rule is a myth for most countries

Quick answers

Q: What is the minimum for Swiss lump-sum taxation in 2026?
For the federal tax, the taxable base must be at least CHF 435,000 in 2026, or seven times your annual rent or rental value if higher. Cantons set their own minimums, for example CHF 250,000 in Valais, CHF 415,000 in Vaud, CHF 500,000 in Zug and CHF 600,000 in Schwyz.

Q: Which Swiss cantons have abolished lump-sum taxation?
Zurich, Schaffhausen, Appenzell Ausserrhoden, Basel-Landschaft and Basel-Stadt, according to the Federal Department of Finance. Zurich abolished it from 2010. Thurgau, St. Gallen, Lucerne and Bern kept it with stricter rules. Vaud, Geneva, Valais, Ticino, Zug and Schwyz all still offer it.

Q: Can I work while taxed on a lump-sum basis in Switzerland?
Not in Switzerland. You must not be gainfully employed there, and the right ends if you start working. Foreign income and activity abroad are allowed. Swiss board seats and running a business from Switzerland are grey areas that cantons treat differently, so get a ruling before you move.

Sources

This is general information from the Nomad Forums team, not legal, tax or financial advice. Rules change; check the official source or a qualified adviser before acting.

Over to you: If you are taxed on a lump-sum basis in Switzerland, which canton did you choose and why? Non-EU members: what did the canton ask for before supporting your B permit?

Low-tax residency for high earners (2026): 14 regimes compared