Switzerland – An Attractive Alternative for UK Non-Doms

Following the Conservative government’s announcement to withdraw the current UK Non-Domicile regime and Labour’s approval of these changes with potential for even higher taxes, around 70,000 non-domiciles (non-doms) are exploring alternative residency and financial planning options ahead of the upcoming UK election.

With the potential changes to the UK’s non-dom regime, Switzerland is a prime alternative for those seeking stability, tax efficiency, and quality of life. Its favorable policies, strong financial infrastructure, and political stability offer a secure and attractive environment for financial planning and wealth management.

Tax advantages

Switzerland’s canton-based tax system allows for favorable agreements. The lump-sum taxation method offers high-net-worth individuals predictable and often lower tax liabilities. Switzerland’s inheritance tax policies also provide significant advantages.

Gift and inheritance taxes are imposed exclusively at the cantonal level. Transfers to spouses are universally exempt, and most cantons also exempt transfers to children. Some cantons do not impose these taxes at all.

Taking up residence in Switzerland

EU/EFTA nationals can live in Switzerland if they are financially independent. Non-EU/EFTA nationals face additional requirements, including a minimum tax contribution, employment, business establishment, or close ties to Switzerland.

While Switzerland does not have a “Golden Visa” program like other European countries, there are still several options available to be able to take up residency in Switzerland. One of them is the lump-sum tax regime.

This special regime, available to non-Swiss nationals not employed in Switzerland, uses living expenses as the tax base instead of global income and assets. The regime offers significant savings on Swiss income and wealth taxes and allows foreign nationals to manage their assets freely.

The ordinary tax regime also has its attractiveness due to low income and wealth tax rates in some cantons. This regime also exempts gains from the sale of private movable assets. Various tax planning strategies can be implemented, particularly for cross-border arrangements.

There are other visa options available for those considering a move to Switzerland, such as the Swiss Retirement Visa and the Entrepreneur Visa. The Swiss Retirement Visa is designed for retirees who can demonstrate sufficient financial means to support themselves without employment. On the other hand, the Entrepreneur Visa caters to business owners and investors planning to establish or invest in Swiss companies, contributing to the local economy. Each visa comes with specific requirements and benefits, and their suitability depends on individual circumstances, such as age, financial resources, and professional intentions. Understanding these visa options can help individuals tailor their immigration strategy to best fit their unique needs and aspirations.

Alpen Partners: Your trusted partner for a smooth transition

Alpen Partners in Switzerland, in addition to offering financial advisory, global wealth planning, and traditional portfolio management services, is an ideal partner for navigating the complexities of relocation. With in-depth expertise in Swiss immigration and tax regulations, we are well-positioned to guide clients through the process of exploring visa options and identifying the most suitable solutions.

Whether you are considering a lump-sum tax regime, a Swiss retirement visa, an entrepreneur visa, or another available option, Alpen Partners provides tailored advice and strategic insights, ensuring an efficient transition while maximizing the benefits of your new residence. Our client-centered approach ensures that each individual receives the hands-on support needed to embark on this new chapter.