With the UK’s Non-Dom regime coming to an end, relocating to Switzerland presents a unique opportunity for UK expats seeking favourable tax structures. Switzerland offers a stable and predictable tax environment, making it an attractive destination for wealth preservation and long-term financial planning.
Lump-Sum Taxation: A Unique Opportunity
One of Switzerland’s most appealing tax benefits for foreign residents is the lump-sum taxation regime (forfait fiscal), which allows qualifying individuals to pay tax based on their living expenses rather than their worldwide income.
Fixed Taxation: Tax liability is determined by an agreed-upon lump sum, often lower than standard income tax rates.
No Tax on Foreign Income: Unlike in the UK, where global income is subject to taxation, Switzerland does not tax non-Swiss income under this scheme.
Ideal for High-Net-Worth Individuals: Those with significant global income and assets can benefit from predictable and reduced tax obligations.
No or Low Capital Gains Tax
Switzerland provides a tax-friendly approach to capital gains, offering a major advantage over the UK:
No Capital Gains Tax on Private Assets: Unlike the UK, where capital gains can be taxed up to 20%, Switzerland does not tax private capital gains from assets like stocks, bonds, and real estate (unless classified as professional trading).
Wealth Preservation: UK expats can build and transfer wealth efficiently without excessive tax burdens on asset appreciation.
Cantonal Tax Variability: Choose Your Tax Structure
Switzerland’s federal system allows cantons to set their own tax rates, creating competitive environments for expatriates.
Tailored Tax Benefits: Certain cantons (such as Zug, Schwyz, and Valais) offer significantly lower tax rates compared to others.
Flexibility in Residency: UK expats can strategically select a canton that aligns with their financial goals and lifestyle preferences.
Lower Corporate Taxes: For entrepreneurs and business owners, Switzerland provides one of Europe’s most competitive corporate tax rates.
Favourable Inheritance & Wealth Tax Structures
Switzerland offers more attractive inheritance tax policies compared to the UK, where estates above £325,000 are subject to a 40% inheritance tax.
No Inheritance Tax in Certain Cantons: Some regions, such as Schwyz and Obwalden, do not impose inheritance taxes on direct descendants.
Wealth Tax Considerations: While Switzerland has a modest wealth tax, careful structuring of assets can significantly minimise obligations.
Estate Planning Advantages: Switzerland provides a stable legal framework for succession planning and asset protection.
Favourable Tax Treatment for Business Owners & Investors
For UK expats who own businesses or have significant investments, Switzerland offers clear advantages:
Lower Corporate Tax Rates: Swiss corporate taxes are significantly lower than in the UK, making it an attractive location for entrepreneurs.
Dividend & Interest Income Benefits: Certain tax structures allow for optimised taxation on dividends and passive income.
Trusts & Foundations: Switzerland’s strong financial infrastructure enables sophisticated wealth management strategies through trusts and private foundations.
Why Switzerland is the Ideal Tax Destination
With the elimination of the UK’s Non-Dom regime, relocating to Switzerland offers unparalleled tax benefits, allowing UK expats to protect and grow their wealth while enjoying an exceptional quality of life.
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