Moving to Switzerland in 2026: lump-sum taxation, stability and quality of life

Swiss taxation operates at three levels: the Confederation, the canton and the municipality. Direct federal tax is the same everywhere; cantonal and municipal taxes vary widely, and it is their sum that determines a household's actual tax burden.

This structure makes it impossible to speak of a Swiss tax rate. Between a low-tax canton and an urban canton, the difference on the same income is considerable, and the choice of where to settle matters more than any structuring decision.

The Federal Act on Direct Federal Tax sets short thresholds for tax liability. Its Article 3 provides that a person stays in Switzerland for tax purposes when, without significant interruption, they reside there for at least 30 days³ while carrying on a gainful activity, or for at least 90 days⁴ without carrying on any activity.

These periods are much shorter than the six-month threshold common elsewhere, and this is a little-known point. A three-month stay without activity is enough to create Swiss tax liability, which can result in dual residence with France and call for application of the tax treaty.

Taxation based on expenditure

Switzerland offers foreigners with no gainful activity in its territory a special regime known as lump-sum taxation. Article 14 of the federal act provides that tax is calculated on the taxpayer's annual expenditure, but at least on about CHF 435,000⁵ per year at federal level.

Two other floors apply alternatively: seven times the annual rent or rental value for a head of household, and three times the annual board and lodging price for other taxpayers. The highest of the three amounts serves as the basis.

The federal amount is indexed each year, and the cantons set their own minimums, which are often higher. Several cantons have also abolished lump-sum taxation following popular votes: its availability therefore depends on where you settle and is not guaranteed over time.

The decisive condition is the absence of gainful activity in Switzerland. The regime is aimed at people living off their wealth or foreign income; carrying on an activity in the territory causes it to be lost.

Inheritance

Inheritance tax is cantonal: there is no federal inheritance tax. As a general rule, spouses and registered partners as well as descendants are exempt, at a rate of 0%⁶.

We do not publish the direct federal tax schedules, cantonal and municipal rates, or the rates applicable to inheritances between collateral relatives: they vary from canton to canton and do not appear in the extracts available to us. The actual burden must be simulated canton by canton.

Switzerland is not a member of the European Union, but the Agreement on the Free Movement of Persons gives French nationals access on terms close to those of the single market.

A French national can settle there to work, to be self-employed, or to reside without working if they have sufficient financial means and health insurance. The residence permit is issued by the canton, not by the Confederation.

Health insurance is compulsory and individual: each person, including each child, takes out their own policy with a private insurer, within a short period after arrival. It is a major budget item, with no equivalent in the French system.

Cross-border commuter status is a separate and very common route for French nationals: it allows them to work in Switzerland while living in France, with its own tax and social security regime, which differs depending on the canton of employment.

Confusing settling in Switzerland with cross-border work is a source of costly mistakes. The two situations do not confer the same rights or the same obligations, and moving from one to the other has tax consequences that must be anticipated.

The Swiss passport also gives access to about 190⁷ without a prior visa, but naturalisation requires a long period of residence and a procedure conducted at municipal, cantonal and federal level.

Acquisition by a foreigner is governed by the federal act known as Lex Koller, which makes the purchase of a property by a person domiciled abroad subject to authorisation. A European Union national holding a residence permit and actually residing in Switzerland is, however, exempt for their main residence.

The rule is therefore clear in principle: settling in the country opens up the market, investing from a distance does not. Second homes in tourist areas are subject to cantonal quotas and additional restrictions.

The Swiss market is characterised by a low home-ownership rate and a dominant rental culture. Rents are regulated by a mechanism linked to the reference mortgage rate, and tenant protection is strong — a framework that makes renting a viable long-term option, unlike in other countries.

Buyers should be aware of one tax feature: owners of their own home are taxed on an imputed rental value, a notional income corresponding to the rent they would receive if they let the property. This mechanism, regularly debated, significantly alters the profitability calculation of a purchase.

We do not publish cantonal transfer duties, wealth tax rates on real estate, or imputed rental value levels: they are a cantonal matter and do not appear in our extracts.

Switzerland is one of the most expensive countries in the world, and the gap with France is clear for food, eating out, services and healthcare. Salaries are, in return, much higher, which means the comparison is only meaningful in terms of net disposable income.

We do not publish a typical monthly budget: we have not found an official Swiss series measuring a basket of spending comparable to that of an expatriate.

The currency is the Swiss franc. Its steady appreciation against the euro has a twofold effect: it enriches a resident whose income is in francs, and it increases the weight of any outgoing that remains denominated in euros — a loan in France, for example.

Three items shape a budget. Health insurance premiums, which are individual and rise with age. Housing, which is tight in the Geneva and Zurich areas. And local taxation, whose weight depends on the chosen municipality as much as on the canton.

In return, the quality of infrastructure, public transport and the healthcare system is world-class, and the country's legal and political certainty is an asset in itself for wealth.

1. Choose the canton and municipality first, as the tax burden and the availability of lump-sum taxation depend directly on them;
2. file the residence permit application with the cantonal authorities, providing evidence of an activity or sufficient resources;
3. take out compulsory health insurance for each member of the household within the set deadline;
4. keep an eye on the 30 days³ and 90 days⁴ thresholds, which are much shorter than the usual six-month threshold;
5. handle the departure from France according to its own criteria and the France–Switzerland tax treaty, which is particularly detailed.

The first point is what sets Switzerland apart from any other destination: it is not the country you choose, it is the municipality. Two addresses a few kilometres apart can carry very different tax burdens, and this decision is the most significant one in the project.

We do not publish processing times: they are a cantonal matter and we have no official, quantified and dated source.

• There is no Swiss tax rate: the burden depends on the canton and the municipality, and the difference is considerable.
• The tax liability thresholds are 30 days³ with an activity and 90 days⁴ without, much shorter than elsewhere.
• Lump-sum taxation requires the absence of gainful activity in Switzerland and minimum expenditure of about CHF 435,000⁵ at federal level, with cantons able to require more.
• Several cantons have abolished lump-sum taxation by popular vote: its availability depends on the location and is not guaranteed over time.
• Lex Koller makes purchases by a person domiciled abroad subject to authorisation.

Finally, Switzerland is not a tax optimisation destination but a destination for settling down. Its real tax appeal requires living there, paying high insurance premiums and accepting one of the highest costs of living in the world. What it offers in return — institutional stability, quality public services, legal certainty — is a long-term trade-off, not an immediate gain. A Swiss plan is built with local advice and decided municipality by municipality.