Residence and Relocation Advisory
Dixcart Switzerland advises individuals and families on establishing residence in Switzerland. We provide clear, practical guidance on the options available and the steps involved, drawing on long-standing experience of Swiss residence rules and local practice.
How we can help
Switzerland offers a number of residence options, depending on nationality, personal circumstances and the purpose of the move. These options vary at cantonal level in both process and outcome. We help clients understand the routes that may be available to them and the implications of each, allowing them to plan with clarity before making any commitments.
Our advisory work covers:
- Residence linked to employment or business activity in Switzerland
- Residence for individuals not intending to work in Switzerland
- Applications involving family members
- Renewals and changes to existing permits
We coordinate the application process and liaise with relevant authorities where appropriate.
Residence in Switzerland has tax consequences that depend on canton, personal circumstances and source of income. In some cases, alternative tax arrangements may be available under Swiss law, subject to agreement with the authorities. Find our more here: An Explanation of The Different Rules For Individuals to Move to Switzerland and The Relevant Bases of Taxation – Dixcart.
We work with clients and their advisers to ensure that residence planning is aligned with wider tax and financial considerations.
Beyond the legal and administrative aspects of residence, relocating to Switzerland involves a number of practical matters. We assist with the coordination of these issues so that clients understand what to expect when moving and settling in Switzerland.
Explanation of The Different Rules For Individuals to Move to Switzerland
Foreign nationals are allowed to stay in Switzerland as tourists, without registration, for up to three months.
After three months, anyone planning to stay in Switzerland must obtain a work and/or residence permit, and formally register with the Swiss authorities.
When applying for Swiss work and/or residence permits, different regulations apply to EU and EFTA nationals, compared to other nationals.
EU/EFTA – Working
EU/EFTA nationals enjoy priority access to the labour market.
Should an EU/EFTA citizen want to live and work in Switzerland, they can freely enter the country but will require a work permit.
The individual will need to find a job and the employer must register the employment, before the individual can actually start to work.
The procedure is made easier if the new resident forms a Swiss company and is employed by it.
EU/EFTA – Not Working
The process is relatively straightforward for EU/EFTA nationals wanting to live, but not work, in Switzerland.
They must fulfil the following criteria:
- Have sufficient financial resources to live in Switzerland and to ensure that they will not become dependent on Swiss welfare.
- Take out Swiss health and accident insurance.
Non-EU/EFTA – Working
Third country nationals are allowed to enter the Swiss labour market if they are appropriately qualified, for example managers, specialists and those with higher educational qualifications.
The employer needs to apply to the Swiss authorities for a work visa, while the employee applies for an entry visa from their home country. The work visa will allow the individual to live and work in Switzerland.
Again, this procedure is made easier if the new resident forms a Swiss company and is employed by it.
Non-EU/EFTA – Not Working
Non-EU/EFTA nationals, without gainful employment are divided into two categories:
- Older than 55;
- Must apply for a Swiss residence permit through a Swiss consulate/embassy from their current country of residence.
- Provide proof of adequate financial resources to support their life in Switzerland.
- Take out Swiss health and accident insurance.
- Demonstrate a close connection to Switzerland (for example: frequent trips, family members living in the country, past residency or ownership of real estate in Switzerland).
- Abstain from gainful employment activity in Switzerland and abroad.
- Under 55;
- A residence permit will be approved on the basis of “predominant cantonal interest”. This generally equates to paying tax on deemed (or actual) annual income, of between CHF 400,000 and CHF 1,000,000. The precise amount of deemed annual income depends on a number of factors, including the specific canton in which the individual lives.
The ‘Lump Sum System of Taxation’ is applicable for individuals moving to Switzerland for the first time or returning after a minimum ten year absence. No employment can be undertaken in Switzerland, but the individual can be employed in another country and can administer private assets in Switzerland.
The ‘Lump Sum System of Taxation’ bases income and wealth taxes on a taxpayer’s living expenses in Switzerland, NOT on his/her worldwide income or assets.
Once the tax base (living expenses in Switzerland), has been determined and agreed with the tax authorities, it will be subject to the standard tax rate in that particular canton.
Third country nationals (non-EU/EFTA), are required to pay a higher lump-sum tax on the basis of “predominant cantonal interest”. This generally equates to paying tax on deemed (or actual) annual income, of between CHF 400,000 and CHF 1,000,000, and depends on a number of factors, including the specific canton in which the individual lives.
