Few Swiss tax topics attract as much attention as the lump-sum taxation regime, known in French as the forfait fiscal or imposition d'après la dépense. Journalists like it, politicians argue over it and newcomers with a large fortune ask whether it is for them. The short version is that it is a narrow, negotiated regime with strict conditions, and it no longer exists in every canton. Here is how it works according to the federal tax act and the Federal Tax Administration (FTA).
What is lump-sum taxation in Switzerland?
Normally you are taxed on your worldwide income and your wealth. Under the expenditure-based regime, you are instead taxed on what you spend to live: the base is your annual living expenses and those of the people you support, in Switzerland and abroad, subject to federal and cantonal minimums, rather than your actual income. It is designed for foreign residents who do not work in Switzerland, such as wealthy retirees or rentiers.
It is not a tax-free status and it is not a flat rate you can choose. It is an agreement with the cantonal tax authority, based on a calculation, and the administration discusses it with you.
How does lump-sum taxation differ from ordinary taxation?
In the ordinary system, the tax follows what you earn and own: salary, pension, interest, dividends, and net wealth. Everything is declared, and the canton applies its scale. Under lump-sum taxation the starting point is a single base figure that stands in for your income and your wealth. The authority sets it from your household's living expenses, subject to the minimums. The tax is then computed on that base.
Two consequences follow. First, the regime makes sense only if the base is lower than what the ordinary system would produce on your real income and wealth. For most residents, it is not. Second, you do not get to choose a number: you give the authority a budget of your expenses, and it checks that the figure is credible and at least equal to the minimum.
Who qualifies for lump-sum taxation in Switzerland?
Article 14 of the federal direct tax act sets three conditions. You must:
- not be a Swiss citizen;
- be liable to tax in Switzerland for the first time, or after an absence of at least ten years;
- carry out no gainful activity in Switzerland.
If you are married and live together, your spouse must meet the same conditions. Swiss nationals have no access to the regime, not even with a second nationality, and a new arrival who takes a job here loses it. Geneva adds that managing your private wealth is allowed within the usual limits, but a paid board seat is not.
Which cantons still offer it?
Not all. Following federal documentation from September 2025:
- Abolished: Zurich, Basel-Stadt, Schaffhausen and Appenzell Ausserrhoden.
- Limited: Basel-Landschaft grants it only for the year of arrival.
- Others: cantons such as Geneva still apply it.
Ask for the regime when you settle. In Geneva, you send a written request to the tax administration at the same time as your steps with the cantonal population office: a letter on your situation confirming that you will not work in Switzerland, a copy of your lease (or the rental value form if you buy) and the canton's form on your living expenses. The agreement is usually valid five years, and any change (marriage, a purchase, a new rent) must be reported without delay.
Because the regime depends on a negotiated agreement and on your exact conditions, such as marital status, previous residence and income sources, the questions are specific. Moovy can help you list what to ask the cantonal tax office and which documents to prepare, but it cannot negotiate an agreement or give tax advice for your case.
What are the minimum bases?
For the direct federal tax, the base is at least the highest of: CHF 435,000 in 2026 (CHF 434,700 in 2025), an indexed amount; seven times your annual rent or rental value if you run a household; three times the annual price of board and lodging otherwise; and the total of certain Swiss-source income, such as Swiss pensions and income from property or capital in Switzerland. Each canton sets its own minimum. Geneva publishes an example for 2026: CHF 426,357 for the cantonal and communal tax, and CHF 468,993 when the 10% surcharge that takes wealth into account is applied (page updated 26 May 2026).
The Geneva figures show how the surcharge works: CHF 426,357 plus 10% gives CHF 468,993. The surcharge accounts for wealth, so a person with a large fortune is not treated like a person with the same spending and little capital.
The base is the amount on which the tax is computed, not the tax itself. The tax follows from applying the cantonal and federal scale to that base. Because the minimums are indexed, they move every year, so use the current figures from the FTA circular and your canton's page.
What is the process, step by step?
- Check the three federal conditions with your spouse, if you have one.
- Check your canton. Look at whether it still offers the regime and what its minimum is.
- Contact the cantonal tax authority before you move. Present your expected annual expenses and ask for its position in writing.
- Send your request when you settle. In Geneva, it goes to the tax administration with your letter, lease and expenses form, in parallel with your registration.
- Keep your records. If your circumstances change, for example if you take up work or your spouse does, tell the authority, because the regime can end.
The agreement is individual and the minimums move with indexation. Before you move or sign a lease, have your situation confirmed by a tax adviser who knows the canton.
What do you need to prepare?
- A budget of your annual expenses in Switzerland, including housing.
- The lease or the rental value of your home.
- A statement of your income and wealth, since the authority checks that the base is in line with it.
- Proof of your earlier residence, to show that you were absent from Switzerland for at least ten years or that this is your first liability to tax.
What about retirees with a foreign pension?
Retirees are the typical audience for the regime: they do not work in Switzerland, and their income comes from abroad. Outside lump-sum taxation, a pension is taxed according to the treaty between Switzerland and the paying country. Treaties often treat a public pension, such as a former civil servant's, differently from a private one, so read the "pensions" article of your country's treaty with Switzerland. For residence and health insurance, see Swiss residence permits for EU citizens and health insurance in Switzerland. Note that if you pick a canton that abolished lump-sum taxation, you are taxed ordinarily, wealth tax included.
What are the traps of lump-sum taxation?
- Working in Switzerland. Any gainful activity in Switzerland ends the regime. Be careful with consulting, board seats or running a business.
- Assuming every canton offers it. Four cantons abolished it, and one grants it only for the arrival year.
- Asking too late. Send the request when you settle, with your registration.
- Forgetting the spouse. The conditions apply to both partners.
- Relying on old figures. The minimum bases are indexed.
- Ignoring your home country. Your country of origin may have its own rules on exit and on residence; ask a professional.
Is it right for you?
If you are a salaried employee, a freelancer or a modest retiree, the answer is no: you would pay less tax under the ordinary regime, and the regime requires that you do not work. For the wealthy, retired newcomer, it deserves a calculation by a tax adviser in the canton where you plan to settle. For the ordinary system, read taxes in Switzerland for new residents, and if retirement is your plan, see retire in Switzerland. To place cantons in context, best places to live in Switzerland compares Geneva, Vaud and Zurich.