Lump-sum taxation in Switzerland: tax on your spending, for those who don't work and have a lot

Yes, Switzerland has a tax scheme for newcomers, but it's for a small group: the Besteuerung nach dem Aufwand, popularly the Pauschalsteuer. You then pay not on your income and assets, but on your annual living expenses, with a statutory minimum. For federal tax that base is at least CHF 435,000 in 2026. The conditions are strict: you aren't Swiss, you come to live in Switzerland for the first time or after at least ten years away, and you don't work there. The pitfall: if one of two spouses works, the whole household falls outside it.

Who is the scheme meant for?

The federal Ministry of Finance describes it as a simplified way of assessing foreigners who live in Switzerland but don't work there. It concerns a small group: fewer than one in a thousand taxpayers. At the end of 2018, 4557 people were taxed this way, and together they paid CHF 821 million, on average over CHF 180,000 per person.

The law, article 14 of the federal income tax act, sets three conditions, and married partners must both meet them:

Condition or rule	What it means	Amount or deadline
Nationality	you don't have Swiss citizenship	lapses on naturalisation
New resident	taxable in Switzerland for the first time, or after a break	break of at least ten years
No work in Switzerland	not by your spouse either	lapses as soon as you start working there
Minimum base, federal	the highest of the statutory minimums	at least CHF 435,000 a year
With your own household	also tested against your housing costs	seven times the annual rent or rental value
Without your own household	tested against board	three times the annual price for board and lodging

How is the tax calculated?

The base is the living expenses of you and the people you support, in Switzerland and abroad, but never less than the highest of the statutory minimums: CHF 435,000, seven times your annual rent or rental value, or the sum of certain Swiss-source income, such as Swiss pensions, income from Swiss real estate and Swiss investments. The normal tariff is then applied to that base. The amount of CHF 435,000 applies since 1 January 2026 and moves with the price index.

There's also a control calculation: the tax may not be lower than the ordinary tax on that Swiss income. If a treaty country requires taxation of the whole income before granting its own exemption, income from that country counts as well.

If you or your partner work, it's not possible. The scheme is only for people who do no paid work in Switzerland, and for a married couple both partners must meet the conditions. If you start working later, or become Swiss, the right lapses. Anyone moving for a job falls under ordinary tax or the Quellensteuer.

In which canton is it possible?

Implementation differs per canton, and the scheme no longer exists everywhere. Zürich abolished it after a popular vote in 2009, as of January 2010, and Schaffhausen, Appenzell Ausserrhoden, Basel-Landschaft and Basel-Stadt followed. Thurgau, St. Gallen, Lucerne and Bern kept it, but with stricter rules. Because cantonal and municipal tax count as well as federal tax, always discuss the amount with the tax office of the canton where you want to live, before choosing a home there.

What does it mean for my Dutch income?

Who may tax which income is settled by the tax treaty between the Netherlands and Switzerland. Since 1 January 2021 the Netherlands may withhold up to 15% tax on a Dutch pension, an annuity or your AOW if you live in Switzerland; how that works out is in AOW, pension and tax in Switzerland. If you do go to work, read working in Switzerland; it explains how the Quellensteuer works.

This scheme calculates in large amounts and in two countries at once. Have the calculation made by a tax adviser who knows both countries, and discuss it with the canton's tax office before you move.

In Vertrekklaar this is phase 1 of 5 of the journey, step 1.3: the same steps, but for your situation — in your order, tickable, and with the deadlines watched. See the whole journey to Switzerland or go straight to step 1.3 in the open plan.