Residence permit of the Swiss Confederation under an accord (lump-sum) agreement
- Grounds for obtaining a residence permit
- Legal regulation
- What does a Swiss residence permit entitle me to?
- Advantages of taxation under a record (lump sum) agreement
- Timeline of the procedure
- Costs of obtaining a residence permit
- Who can apply for a Swiss residence permit
- Categories of expenses taken into account for taxation
- Features of the procedure
- Renewal of residence permit
- Obtaining Swiss citizenship
- How we can be of service
Grounds for obtaining a residence permit
Conclusion of a record (lump sum) agreement.
Legal regulation
A residence permit (category B) is granted on the basis of article 30 of the Swiss Confederation Act of 16 December 2005 on foreigners and integration ("other reason" for citizenship).
What does a Swiss residence permit entitle me to?
- Travelling within the Schengen countries without visa;
- Stay in the Schengen countries without time limit (up to 180 days per year);
- Ability to open accounts with one of the best banking systems in the world, as well as the right to open accounts in foreign banks with minimal difficulties during bank inspections;
- Access to one of the best healthcare systems in Europe;
- Opportunity to study in educational institutions in Switzerland;
- Acquiring citizenship after 10 years of residency.
Advantages of taxation under a record (lump sum) agreement
- Immutability - the amount of tax liability does not change each year;
- Confidentiality - no need to notify tax authorities of the existing assets or income;
- Simplicity - no complicated taxation schemes and calculations. It is enough to conclude an agreement to pay a fixed rate;
- Flexibility - further investment of money proceeds easier by not worrying about the amount of tax liability that could change;
- Tax exemptions - most cantons do not impose gift and inheritance taxes on residents under the accord (lump sum) agreement.
Timeline of the procedure
Varies from canton to canton.
Practically, after all documents preparation, the negotiations procedure with tax authorities and conclusion of a chord (lump sum) agreement - up to 2 months.
Obtaining a residence permit takes up to 3 months, afterwards the person becomes a tax resident of Switzerland.
Total timeframe is up to 8 months, taking into account the documents preparation.
Costs of obtaining a residence permit
The procedure cost of the residence permit obtaining in Switzerland starts from 30,000 euros.
Amount of the annual tax is set by the Swiss tax authorities based on local legislation, residency duration and the amount of the applicant's expenses.
Who can apply for a Swiss residence permit
- Investors with verified legal income are subjects to the following conditions:
- Over 18 years of age;
- Had not resided in Switzerland for the last 10 years;
- No unexpunged criminal record;
- Residents for at least 183 days per year (exceptions may be made in negotiations with the tax authorities of the particular canton);
- Non-carrying costs, which shall equal at least CHF 400,000;
- Income of at least CHF 400,000 per year.
- The investor's spouse:
- No criminal record;
- Lived together with the investor for at least 3 years (provided there is no officially registered marriage).
Categories of expenses taken into account for taxation
- Daily expenses for clothing or food;
- Rental housing, gardening;
- Service staff (cleaners, butlers);
- Education, training;
- Expenses related to travelling around the world;
- Expenses related to medicine (health maintenance, sports);
- Expenses related to collecting cars, yachts, private jets;
- Financial and property expenses outside Switzerland;
- Unforeseen expenses;
- Gifts and Charity;
- Leisure and Recreation;
- Television and radio fees;
- Animal maintenance costs;
- Any type of taxes payable outside Switzerland.
Features of the procedure
- Conclusion of a special chord (lump sum) agreement with the cantonal government, which is concluded for a period of 1 year or 5 years;
- The tax rate is not calculated on your income, but on your expenses (minimum income requirements are also set by the cantons);
- You receive your residence permit after 3 months from submitting your documents. Unlike many European investment residence permit programs, you do not need to purchase a property to apply for a Swiss residence permit on the basis of a tax agreement. You apply for a residence permit after signing a lump sum agreement;
- The first residence permit is issued for 1 year, renewable annually, provided the proof that you have not left the Swiss territory for 183 days per year. The permit is also issued to accompanying applicants (spouses, children, common-law spouses with proof of cohabitation for more than 3 years);
- The amount of annual tax for non-European Union citizens ranges from 450,000 CHF to 1,000,000 CHF per year;
- Early termination of the tax agreement is possible. In this situation, the residence permit will also be terminated. In this case, the tax authorities of several cantons include in the agreements a clause on payment of compensation to the cantonal budget in case of early termination of the tax agreement at the initiative of the tax payer.
Renewal of residence permit
Renewable annually, subject is required for an annual stay of at least 183 days in Switzerland, as well as timely payment of taxes and compliance with both cantonal and national laws.
Obtaining Swiss citizenship
It is possible after 10 years from obtaining the first residence permit. For this purpose, it is necessary to reside legally in the country for at least 5 years (the basis for obtaining a residence permit), after 5 years of residence on the basis of a residence permit and passing the language proficiency test you can apply for citizenship.
How we can be of service
- Preparing and organizing the necessary documents collection on the territory of the applicant's current citizenship;
- Negotiating with the tax authorities of the selected canton to establish an acceptable amount of annual tax;
- Preparation of a draft (lump sum) agreement with the canton;
- Supporting the application procedure and obtaining a residence permit.
To obtain a Swiss residence permit, you can contact REVERA's Private clients specialists at y.zadesenskaya@revera.legal.
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