This Swiss Residence by Investment program requires you to pay a fixed tax of CHF 200,000 (approximately US$ 203,000) to the canton (small district) where you live. Depending on the canton, this amount can reach CHF 600,000 per year. You are not permitted to work under this Swiss lump-sum taxation agreement.

What exactly is the Swiss Residence Program?

Swiss residence is gaining popularity among investors. Due to its strong economy and pleasant lifestyle, Switzerland was named the third-best place in the world to live. It also features stunning landscapes, charming communities, and the high peaks of the Alps for skiing and trekking. It’s no surprise that people from all over the world come here.

The Swiss Golden Visa program offers various investment alternatives, from lump-sum tax payments to corporate investments.

Although Switzerland offers permanent residence and Swiss citizenship as part of the scheme, investors must live in the country with a residence permit. Compared to other nations like Malta or Portugal, the investment requirement is relatively high, with strict criteria.

There are several types of resident categories in Switzerland, with an established distinction between EU or European Free Trade Association (EFTA) citizens and non-EU/EFTA citizens. EU or EFTA citizens can obtain a residence permit without difficulty if they have a work contract with a Swiss employer, become self-employed in Switzerland, or demonstrate they are financially independent with sufficient income or assets to cover their living costs.

Non-EU/EFTA nationalities have more difficulty obtaining residence, but it’s still possible.

Financial Requirements for Swiss Investor Visa

There are two paths to residence and becoming a Swiss citizen under the Swiss citizenship by investment scheme. Suppose you want to obtain a residence permit in Switzerland as a foreigner but not work. In that case, the Swiss Residence Program is for you.

Route 1: Swiss Lump-Sum Taxation

The Swiss lump-sum taxation system allows a reasonably quick path to residence. This option is ideal for you if you’re a wealthy individual or retiree. You can live in Switzerland with your family for a minimum annual tax cost of CHF 250,000 or more (depending on the Swiss canton and excluding Zurich). There’s no requirement to declare worldwide income and assets to tax authorities.

Swiss residence scheme, commonly known as Swiss Golden Visa: Under this scheme, you must pay a fixed-value taxation fee of CHF 200,000 to the Swiss canton where you reside. Depending on the canton, this amount can vary from CHF 400,000 to CHF 600,000 per year. You are not permitted to work under this program.

Generally, the fixed tax amount is calculated by multiplying the annual rental income by five times the total housing expenses (whichever is higher). This amount must be paid to tax authorities.

Appenzell, Bern, Geneva, Fribourg, Graubunden, Jura, Nidwalden, Schwyz, St. Gallen, Vaud, Valais, Lucerne, Solothurn, Obwalden, Thurgau, Ticino, and Zug are the most popular Swiss cantons for this program.

Route 2: Establishing a Swiss Corporation

Swiss Business Investor Program (or Swiss residence by investment): Non-EU citizens must initiate a Swiss company formation and establish a new one or invest in an existing Swiss company with a minimum turnover of CHF 1 million.

To obtain a permanent residence permit a minimum investment of CHF 1 million in a pre-approved company is required. When establishing a new company or subsidiary in Switzerland, you can establish a branch or a separate legal organization as a limited liability company or corporation.

Although the process is relatively simple, you must demonstrate that your investment benefits the Swiss community by maintaining existing jobs or creating full-time jobs for Swiss citizens. Your investment must be made in the canton where you will live and must be maintained throughout your stay.

Swiss Golden Visa Residence Eligibility Criteria:

• Be a non-EU citizen
• Be between 18 and 55 years old
• Have a clean criminal record
• Be in good health
• Have an official source of income
• Present proof of finances
• Own or rent property in the country

The advantages of the Swiss Golden Visa program

As an incentive to stimulate foreign investment, Swiss Golden Visa holders enjoy some exclusive advantages. Here are some of the benefits of the Swiss residence program:

• Moving to Switzerland: During the validity of the residence permit, the investor and their family gain the right to reside in Switzerland. A residence permit card is typically valid for one year. It can be extended if you live in the country for 183 days in the year.
• Schengen: visa-free travel to Schengen nations: Switzerland is a member of the Schengen Zone. As a result, Swiss residents can travel to other Schengen Area countries and stay for up to 90 days in a 180-day period without a visa.
• Access to high-quality education and healthcare: Swiss schools and universities are considered among the world’s best. Investors’ children can receive a good education there.
• Healthcare: A Swiss residence permit allows its holder to access medical treatment at local clinics or institutions in other Schengen Agreement countries without the need for a medical visa. Citizenship is granted after ten years of residence in the country.
• Citizenship: After ten years of permanent residence in Switzerland, the investor and their family can apply for citizenship. As the country’s legislation allows dual citizenship, it won’t be necessary to give up your first citizenship unless required by the law of your first citizenship country.

For children aged 8 to 18 living in Switzerland, one year counts as two. To apply for citizenship, they must have lived in Switzerland for at least six years.

Swiss citizenship allows you to travel to 186 countries without a visa and live in EU countries without acquiring a residence permit.

Tax Reduction

In some circumstances, paying a fixed-value tax is preferable to taxing total income. However, the country of origin and Switzerland must have a Double Taxation Treaty.

Frequently Asked Questions

Can I acquire Swiss citizenship?

The acquisition of Swiss citizenship is not permitted outright. Instead, citizenship by naturalization is allowed if the principal applicant has maintained their investment and residence permit in Switzerland for at least ten years.

To become a citizen, you must demonstrate that you have integrated into Swiss society, adopted Swiss ways of life and customs, have good character, and do not threaten national security.

The most pleasant aspect is that Switzerland recognizes dual citizenship, so you don’t need to renounce your original citizenship. You will also have visa-free entry to more than 172 countries worldwide.

Can I get a lifetime residence permit in Switzerland?

A citizen of another country who wishes to settle in Switzerland can apply for a type C permanent residence visa. They can only do so after 10 years of continuous residence in the country if they have no family ties to the country, such as a Swiss spouse or parents, or if they are of a specific nationality.

What documentation do I need to submit?

For your Swiss Residence Program application to be successful, you will need the following documents:

• Completed application form
• A valid ID card or passport
• Proof of financial resources
• Proof of health insurance
• Evidence of good character
• Evidence of relationships with family members
• Taking responsibility for family members’ living expenses, if applicable

How to obtain a Swiss Golden Visa or Swiss passport?

The complete Swiss Golden Visa application process can take up to 5 months if all goes well. The steps below must be followed:

1. Select your investment strategy: Decide between various investment programs
2. Obtain permission from Swiss authorities: You must sign several contracts with Swiss authorities and gather all necessary documentation. All documents will undergo thorough due diligence analysis. After that, you can make the specified minimum investment.
3. Apply for a type D visa: After obtaining Swiss government approval, you can apply for a D visa. Swiss law requires you to provide relevant documentation, bank statements, a health insurance policy, and verification of your clean criminal record.
4. Obtain a Swiss residence permit: After receiving your D visa, you and your family must migrate to Switzerland and convert your visa into a Swiss residence permit. You must cooperate with your Swiss canton authorities to make your investment (form a company or pay the necessary tax).
5. Apply for Swiss citizenship or permanent residence: You can renew your temporary Swiss residence visa indefinitely until obtaining Swiss permanent resident status after ten years. You can apply for Swiss citizenship after 12 years of residence in Switzerland.

To obtain a Swiss passport, you must demonstrate proficiency in one of the country’s official languages and cultural assimilation.

How do you apply for Swiss citizenship through investment?

The initial Swiss residence visa will be temporary, and the applicant must reside in Switzerland for at least ten years before applying for permanent residence.

To be eligible for Swiss citizenship, one must be a permanent resident with a Swiss residence permit for at least 12 years.

Becoming a Swiss citizen for you and your family can take a long time. This is only possible through naturalization and absorption into Swiss society. During this period, you must also maintain all your investments.

Can I obtain Swiss nationality?

Naturalization applications can be submitted after ten years of legal and continuous presence in the country, subject to cantonal residence restrictions. Some residents may qualify for accelerated naturalization, eliminating the need to wait ten years.

Applicants must be of good character, have demonstrated integration into Swiss culture and way of life, customs and traditions, and not threaten national security. Additionally, as Switzerland recognizes dual citizenship, individuals are not required to renounce their nationality.

Swiss citizens are entitled to a series of privileges and rights under Swiss law, including an excellent healthcare system, freedom of movement within the EU and worldwide, tax exemptions, and more. All this increases the attractiveness of Swiss citizenship. Besides the Golden Visa scheme, there are other ways to obtain Swiss citizenship, including birth, descent, or marriage to a Swiss citizen.

Who is eligible for a Swiss permanent visa?

The applicant must have the following characteristics:

• Over 18 years of age
• Has not lived in Switzerland in the last ten years
• No pending convictions
• Willing to move to the chosen canton and not work in Switzerland
• Ability to confirm income legality
• Annual worldwide expenses exceed at least seven times the annual rental cost of the investor’s housing in Switzerland
• If the marriage is not officially registered, the spouse must have no pending offences and must have lived with the investor for at least three years

Children under 18 years of age:

• No pending convictions

Can I obtain residence in Switzerland by making a real estate investment?

No, you must pay a fixed-value taxation fee, make a minimum business investment, and initiate a company registration in Switzerland.

If you purchase real estate property, it does not qualify for a Swiss residence permit. Swiss real estate is highly valued, and any foreign citizen can invest in the entire Swiss financial sector or financial system through Swiss banks.

Want to take advantage of the opportunities Switzerland offers?

Switzerland is not what it used to be. Gone are the days when money could be taken to the bank in a briefcase and deposited in an anonymous account.

However, Switzerland (or at least some of its municipalities) is becoming attractive for legal tax reduction, and many people still don’t know this.

Do you need help moving to Switzerland, Panoramic Citizen can help you! Contact us today for assistance!