{"id":5854,"date":"2023-09-26T15:21:45","date_gmt":"2023-09-26T14:21:45","guid":{"rendered":"https:\/\/geneve-avocat.net\/flat-rate-tax\/"},"modified":"2025-05-13T12:23:08","modified_gmt":"2025-05-13T11:23:08","slug":"flat-rate-tax","status":"publish","type":"page","link":"https:\/\/geneve-avocat.net\/en\/flat-rate-tax\/","title":{"rendered":"Flat-rate tax"},"content":{"rendered":"\t\t
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Flat-rate tax<\/h1>\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t
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Flat-rate tax<\/h2>\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t
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Expense-based taxation<\/h2>\n

Lump-sum taxation, also known as taxation according to expenditure, is a tax method introduced in Switzerland in 1965 in the canton of Berne.
\nIt was extended to the federal level in 1990.
\nThe main aim of this tax system is to facilitate the taxation of foreigners living in Switzerland, whose financial situation is complicated by their international status.
\nPeople who choose this tax system are taxed on the basis of their standard of living rather than their income. <\/p>\n

The expense-based tax system is also designed to simplify tax formalities for foreign taxpayers and encourage them to settle in Switzerland.
\nPeople subject to this tax regime are not taxed on their income, but on their current expenses.
\nThe legal basis for this type of taxation is laid down in Articles 16 of the Federal Direct Tax Act and 14 of the Cantonal and Communal Tax Act. <\/p>\n

In many cases, the taxes of people subject to this tax regime would be lower if they were taxed under ordinary procedures.
\nThis is because some of their foreign-source income, such as that generated by real estate or businesses they own abroad, would not be taxed under ordinary procedures.
\nAs far as other types of foreign-source income are concerned, such as dividends and interest subject to withholding tax, Switzerland would have to share the right to tax with other states in accordance with its tax treaties. <\/p>\n

Entitlement to lump-sum taxation<\/h2>\n

The lump-sum taxation system is intended for individuals who meet certain cumulative conditions.
\nNon-Swiss nationals who are subject to unlimited taxation for the first time or after an interruption of at least ten years, and who are not gainfully employed in Switzerland, are entitled to pay tax based on expenditure instead of ordinary income tax.
\nTaxpayers wishing to benefit from this system must apply for it. <\/p>\n

Determining the basis of calculation for income tax purposes<\/h2>\n

Income tax is calculated on the basis of the annual cost of upkeep incurred by the taxpayer for himself and the persons living in Switzerland for whom he is responsible.
\nFor people with their own home, tax is calculated on the basis of the higher of the following two amounts: seven times the rental value (for owner-occupied homes) or seven times the annual rent (for rented homes).
\nFor people who do not have their own accommodation (e.g., staying in a hotel), tax must be calculated on the basis of three times the pension they pay for board and lodging. <\/p>\n

The tax based on expenditure must be at least equal to the sum of the income and wealth taxes, calculated according to the ordinary scales, for assets located in Switzerland or for Swiss-source income such as real estate, bank accounts, pensions, etc., and must not exceed the sum of the income and wealth taxes calculated according to the ordinary scales.<\/p>\n

Determining the basis for calculating wealth tax<\/h2>\n

In addition to income tax, people taxed on the basis of expenditure must also pay wealth tax.
\nThis tax is calculated on the basis of the official value of real estate located in the taxpayer’s canton of residence. <\/p>\n

Wealth tax is calculated by multiplying the official value of the property by the tax rate applicable in the canton of residence.
\nForeign real estate is not taken into account when calculating this tax. <\/p>\n

For people who do not own any real estate in Switzerland, wealth tax can be calculated on the basis of their total assets.
\nIn this case, the amount of wealth tax is equal to a fixed percentage of their total wealth, as determined by the tax authorities. <\/p>\n

In short, lump-sum taxation is a tax method for foreigners resident in Switzerland who do not receive any income in Switzerland.
\nThis tax system enables taxpayers to pay taxes on the basis of their standard of living rather than their income.
\nThose wishing to benefit from this system must meet certain conditions and apply for it.
\nExpense tax is calculated on the basis of current maintenance costs incurred by the taxpayer for himself and his dependants.
\nWealth tax is calculated on the basis of the value of real estate assets located in the canton of residence, or on total wealth if the taxpayer has no real estate assets in Switzerland. <\/p>\n\t\t\t\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t\t<\/div>\n\t\t<\/div>\n\t\t\t\t\t<\/div>\n\t\t<\/section>\n\t\t\t\t

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An initial consultation <\/p>\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t

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Take stock of your situation with a specialist lawyer.<\/p>\n\t\t\t\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t

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Would you just like to make an appointment to ask a few questions?
<\/i>Not sure what to do?
Is your situation unclear?<\/p>\n

Opt for an initial consultation with a lawyer.<\/strong><\/p>\n

You will then decide whether you wish to proceed, and our lawyers will give you the cost of the procedure according to your case.
\nAppointments can be made in person or by videoconference. <\/p>\n\t\t\t\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t

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\n\t\t\t\t\t\n\t\t\t\t\t\t\n\t\t\t\t\t\t\t\t\tMake an appointment with a lawyer<\/span>\n\t\t\t\t\t<\/span>\n\t\t\t\t\t<\/a>\n\t\t\t\t<\/div>\n\t\t\t\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t\t<\/div>\n\t\t<\/div>\n\t\t\t\t\t<\/div>\n\t\t<\/section>\n\t\t\t\t<\/div>\n\t\t","protected":false},"excerpt":{"rendered":"

Flat-rate tax Make an appointment with a lawyer Flat-rate tax Expense-based taxation Lump-sum taxation, also known as taxation according to expenditure, is a tax method introduced in Switzerland in 1965 in the canton of Berne. It was extended to the federal level in 1990. The main aim of this tax system is to facilitate the … Read more<\/a><\/p>\n","protected":false},"author":1,"featured_media":0,"parent":0,"menu_order":0,"comment_status":"closed","ping_status":"closed","template":"elementor_header_footer","meta":{"_acf_changed":false,"_seopress_robots_primary_cat":"","_seopress_titles_title":"","_seopress_titles_desc":"","_seopress_robots_index":"","footnotes":""},"class_list":["post-5854","page","type-page","status-publish"],"acf":[],"_links":{"self":[{"href":"https:\/\/geneve-avocat.net\/en\/wp-json\/wp\/v2\/pages\/5854","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/geneve-avocat.net\/en\/wp-json\/wp\/v2\/pages"}],"about":[{"href":"https:\/\/geneve-avocat.net\/en\/wp-json\/wp\/v2\/types\/page"}],"author":[{"embeddable":true,"href":"https:\/\/geneve-avocat.net\/en\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/geneve-avocat.net\/en\/wp-json\/wp\/v2\/comments?post=5854"}],"version-history":[{"count":8,"href":"https:\/\/geneve-avocat.net\/en\/wp-json\/wp\/v2\/pages\/5854\/revisions"}],"predecessor-version":[{"id":7318,"href":"https:\/\/geneve-avocat.net\/en\/wp-json\/wp\/v2\/pages\/5854\/revisions\/7318"}],"wp:attachment":[{"href":"https:\/\/geneve-avocat.net\/en\/wp-json\/wp\/v2\/media?parent=5854"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}