Taking Up Residence in Switzerland


The 2002 agreement on the free movement of people with the European Union ruled inter alia that EU residents could enter Switzerland. Due to the strong increase in immigration since the measure was brought into force, the Swiss Parliament felt compelled to introduce the so-called “Ventilklausel”, lit. “valve clause” in April 2013 in an agreement with the EU to limit migration for a period. This limit is subject to further discussion with the EU.
The numerous Swiss cantons admit EU citizens not engaging in gainful activity in Switzerland the opportunity to be taxed in a lump sum, as opposed to ordinary taxation. The decree on unemployment is limited to the territory of Switzerland. Employment abroad (e.g. in the Principality of Liechtenstein) is permissible and does not affect the lump sum taxation. The basis for calculating the tax depends of the living expenses of the taxpayer, often used as atax foundation on the heptannual rent value occupiedby the taxableestate. When thinking about flat taxes, the overall economic environment of theinflux ofcitizensshould definitely beconsidered, because lump-sum taxation is not necessarily advantageous over ordinarytaxation. Furthermore, the interaction of the different types of taxation is subject to the agreements on double taxation.
The acquisition of property in by EU nationals after taking up residence in Switzerland is likewise easily integrated.