Private Residence Program for Non-EU/EFTA Nationals
Due to its lavishly high standard of living, excellent education and healthcare, effective business infrastructure, high levels of privacy and discretion, bespoke taxation system, and great political stability, Switzerland has become a popular destination country for foreigners wishing to relocate to.
Although many individuals seek to immigrate to Switzerland, Swiss law specifically favours applicants who have an educated background (university degree holders) or who have a high net worth. Individuals are encouraged to apply for investor residency which allows applicants to set up a business in Switzerland and live there.
The Swiss residency visa program is aimed at high net worth investors who can take advantage of the Swiss fiscal package whereby individuals will not be taxed on their revenue or assets but only on their living expenses.
There are several conditions which must be met in order to satisfy the application process for permanent residency in Switzerland. It is imperative that you meet all the conditions prior to applying and investing your money; Switzerland is known to be highly selective in approving residency visas. The selection and interview process is undertaken with a great deal of discretion and is a far more structured process than other investment immigration programs.
In order to be qualified for a residence permit in Switzerland, applicants must meet the following requirements:
Non-EU investors can obtain a Swiss residence permit in one of the two following ways:
Active investments into a Swiss company formation with a minimum value of 1 million Swiss Francs. The applicant must demonstrate the economic benefit he brings to the canton, in particular, if the business creates new jobs or help retain existing jobs via new orders for local companies; the business stimulates new technologies, scientific or industrial development in the region.
Pay annual lump-sum tax (forfait fiscal). The amount may vary from CHF 150,000 to over CHF 1 million per year, depending on the canton of residence (except Zurich) and calculated based on 5 times the annual rental income or the annual living expenses. By paying this fee, there is no need to declare worldwide income and assets to Swiss authorities.
The Swiss business investment immigration program requires applicants to invest in a company which is struggling to expand without the necessary funding, as this will, in turn, enable the company in question to create more jobs and help the Swiss economy through its expansion. Applications will not be approved if applicants wish to invest in a Swiss bank or simply buy shares from a Swiss company quoted on the stock exchange – investments must add economic value to the region.
The annual lump sum tax for foreigners who set up domicile in Switzerland at federal level and in some cantons has been abolished. This is an expenditure-based taxation which replaces ordinary taxes on income and wealth. The lump sum amount must be of some significance in order to create a tax interest for the canton. Applicants are advised to first obtain a lump sum taxation agreement with the relevant cantonal tax authority and then apply for a residence permit.
We will guide you every step of the way to obtaining Swiss residency for you and your family through the Private Residence Program. For more information on any of our services, please feel free to contact us.