The Swiss Residency Program for Individuals (SRP) offers financially independent investors residence in one of 26 cantons, subject to the payment of an annual flat personal income tax (conditions may vary depending on the selected canton).
Switzerland is one of the most attractive countries in the world for living and doing business. The state compares favorably with others for its political and economic stability, security, favorable ecological environment, and low taxes.
Residence permit in Switzerland for financially independent applicants
To obtain a residence permit, the applicant must pay a lump-sum (fixed) tax annually, which is calculated for each applicant individually. A residence permit is issued without the right to work in the country. This option is especially popular among wealthy people since it does not require significant time costs and does not qualify for quotas.
Swiss Residency Program: requirements
- Applicants must be over 18 years of age;
- The applicant and all dependent persons included in the application must not have an outstanding criminal record;
- The applicant must not be employed in Switzerland. However, a person can manage his/her international investment portfolio from Switzerland and carry out business activities outside the country;
- The applicant is required to pay a certain amount of taxes per year. The amount of the annual lump-sum tax depends on various factors: the applicant’s standard of living in Switzerland, the canton, the municipality in which he lives. Actual tax liabilities range from CHF 250,000 to CHF 1 million per year;
- Additional requirements and fees are depending on the selected canton.
Terms of obtaining a residence permit in Switzerland
Consideration of an application for a Swiss residence permit for citizens of countries outside the EU / EACT takes 3-6 months from the date of submission of documents and depends on the canton. The residence permit is renewed annually, subject to the fulfillment of the qualification requirements. Residence in the country is compulsory, but not limited to the number of days in most cantons.
Residence permit in Switzerland for EU citizens
EU / EFTA citizens are free to obtain residence permits in Switzerland within 2-4 weeks based on the free movement agreement between Switzerland and the EU countries.
Benefits of Swiss Residency Program
- Swiss residence permit opens visa-free travel to all countries of the Schengen area.
- Political, social, and economic stability.
- First-class infrastructure and quality banking services.
- High standard of living and favorable environmental conditions.
- World-renowned schools and an excellent education system.
- Attractive taxation system.
- Possibility of obtaining citizenship after 10 years of residency.
Real estate in Switzerland
For foreign citizens, there are restrictions on the purchase of real estate in Switzerland. Foreigners are obliged to coordinate the purchase of real estate with the authorized bodies before the transaction. If permission has not been obtained, the sale and purchase transaction is considered invalid.
Owners of a Swiss residence permit have the right to purchase residential real estate for personal use without the consent of the authorities. They can also freely own commercial properties in Switzerland.
Purchase of residential property in Switzerland by non-resident foreigners
A foreign citizen can purchase a “summer house” only in a place approved by the cantonal authorized body as a tourist region. Every year, the government allocates quotas for the purchase of “summer houses” and condominiums by foreigners (housing for living during the vacation period, bought into private ownership).
Housing can only be purchased by individuals in their name. The purchase of this type of property by legal entities is prohibited. Cantons and local municipalities are free to set their requirements.
Purchase of residential property in Switzerland by resident foreigners
Foreign citizens with a Swiss residence permit can purchase a small house or apartment for personal use without the need to coordinate such a deal with the authorities.
Swiss companies led by foreign nationals can also purchase real estate for use as offices or production facilities without restriction.
For foreign citizens whose main goal is to acquire Swiss real estate, a residence permit can become an additional opportunity.
Purchase of commercial real estate
In Switzerland, there are no restrictions on the acquisition by foreign individuals or legal entities of real estate used exclusively for commercial purposes.
Swiss citizenship
Swiss citizenship can only be obtained through naturalization. Foreign citizens have the right to apply for the right to naturalization after at least 10 years of residence in the country, of which the last 3 years (5 years before the application for naturalization) – – Applicants must reside in Switzerland permanently.
In addition to the fact of legal residence, many other factors are taken into account: how much the family is integrated into Swiss society and adopting the Swiss way of life, knowledge of one of the national languages of the country.
Taxation in Switzerland
The Swiss tax system is one of the most attractive in the world.
The tax residency of an individual in Switzerland is determined based on the center of his vital and economic interests. The main factor that determines the center of vital interests is the place of permanent residence of the person and his/her family. Foreign citizens with a residence permit in Switzerland are always considered tax residents.
Swiss tax residents are taxed on worldwide income, excluding income from foreign business and foreign real estate. Individuals who are not tax residents of Switzerland pay tax on income earned in Switzerland, as well as tax on professional profits earned in Switzerland and tax on profits earned from Swiss real estate.
Switzerland has federal and cantonal and municipal taxation. Personal income tax is levied on a progressive scale, with a maximum federal tax rate of 11.5%. The cantons can set their rates, which range from 1.8% to 26%.
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