SWITZERLAND
Switzerland is universally known for its quality of life, direct democracy and excellent business environment, located in the heart of Europe. It is a member of the Schengen area but is not a member of the European Union. It has excellent air connections and is a short drive from many European business and cultural capitals.
It can be hard for foreigners to obtain the right of residence in Switzerland, and Switzerland levies relatively high personal income taxes on the worldwide income of most residents. However, in order to attract ultra high net worth individuals who contribute meaningful amounts to the Swiss economy, some of the 26 cantons within Switzerland are willing to negotiate an annual flat tax.
The flat tax avoids the need for any declaration of worldwide income, and also allows the taxpayer to claim the benefits of Swiss residence under Swiss tax treaties, offering attractive wealth management opportunities.
Technically, the flat tax is a taxation based on expenditure. The tax is therefore calculated not on the basis of earned income, but on the basis of an estimate of the taxpayer’s living costs in Switzerland. The tax is individually negotiated, but is typically calculated based on "five times the rent or rental value of accommodation in one’s own house in the case of tax-payers who run their own household" as a starting point.
As a rule of thumb, investors will require a net worth of at least $10 million to qualify for the Swiss flat tax residence. NTL has representatives in Switzerland and would be pleased to set up a meeting for qualified individuals or their professional advisers to discuss Swiss immigration in more detail. Please contact any NTL International office in the first instance to make arrangements.