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Glossary

Lump-Sum Taxation

Lump-Sum Taxation, also known as expenditure-based taxation, is a form of taxation based on living expenditure rather than income and assets. It is available to foreign nationals without gainful employment in Switzerland who take up residence for the first time or after a prolonged absence. Cantons regulate eligibility and assessment differently.

At a glance

01

Eligible persons are foreign nationals without gainful employment in Switzerland who establish new residence here or after at least ten years of absence (Swiss nationals are excluded).

02

The basis of assessment is worldwide living expenditure, subject to a statutory minimum multiple of the rental value or rent paid.

03

Several cantons have abolished Lump-Sum Taxation; eligibility and minimum amounts vary by canton.

Frequently asked questions

It is available to foreign nationals who take up residence in Switzerland but do not engage in gainful employment there. What is taxed is the living expenditure rather than actual income and assets. Swiss nationals are excluded, and several cantons no longer apply the model.

Part of the topic

Finanzberatung

Sources: Eidg. Steuerverwaltung (ESTV)