Does Switzerland tax foreign income?

Under lump-sum: tax on living expenses, not on income. In one line: lump-sum: a yearly fixed tax on living costs instead of tax on income (foreign income and gains included).

Can I run an online business from Switzerland?

Effective tax about 35% with the cheapest legal set-up, which costs about USD 3,000 a year: lump sum forbids work in Switzerland: an active business is taxed normally (~25-40%).

What is the catch in Switzerland?

Lump-sum taxpayers may not work in Switzerland.

What residence or citizenship programmes does Switzerland have?

Lump-sum taxation (+ residence for non-EU through it): about USD 20k all-in for one person, ~6 months

Moving to Switzerland: tax, residence and real costs (2026)

Switzerland: lump-sum: a yearly fixed tax on living costs instead of tax on income (foreign income and gains included). The cheapest route to residence is lump-sum taxation: no investment, but no gainful work in Switzerland: about USD 12k in fees doing it yourself, with no investment, in about 4 months. Living costs about USD 3,850 a month for one person in Zurich, USD 2,450 in Sion, and around USD 2,350 on a bare-minimum budget.

Key facts

Tax in one line	lump-sum: a yearly fixed tax on living costs instead of tax on income (foreign income and gains included)
Foreign income	under lump-sum: tax on living expenses, not on income
Gains · dividends	0% on private capital gains · taxed (normal)
Wealth · inheritance tax	yes, cantonal (0.1-1%) · 0% to children in most cantons
Cheapest residence	lump-sum taxation: no investment, but no gainful work in Switzerland
Money needed	About USD 12k in fees doing it yourself, with no investment
Time	about 4 months
Doable yourself?	Use a licensed agent or lawyer
Days you must spend there	live there
Citizenship	10 years
Online business	35% effective, about USD 3,000 a year to run: lump sum forbids work in Switzerland: an active business is taxed normally (~25-40%)
Living (one person a month)	Zurich ~USD 3,850; bare minimum ~USD 2,350; family of four ~USD 7,950
Good for	lump-sum taxation (not for Swiss citizens, no Swiss work); no capital gains tax on private securities; strong private banks and Lombard lending
Common set-up	lump-sum deal with a canton (Zug, Schwyz, Vaud, Valais, Ticino ...) + private banking + a family office company

Pros and cons

Pros	Cons
Stability, banks, schools No tax on private capital gains Lump-sum is predictable	Some cantons abolished the forfait (Zurich) Wealth tax Expensive

Programmes

Programme	All-in, one person	Months	Notes
Lump-sum taxation (+ residence for non-EU through it)	USD 20k	6	Yearly tax from CHF ~100-200k depending on canton; non-EU need a 'significant cantonal interest' permit.

Questions

How much does residence in Switzerland cost?: Lump-sum taxation: no investment, but no gainful work in Switzerland: about USD 12k in fees doing it yourself, with no investment, about 4 months.
Does Switzerland tax foreign income?: Under lump-sum: tax on living expenses, not on income. In one line: lump-sum: a yearly fixed tax on living costs instead of tax on income (foreign income and gains included).
What does it cost to live in Switzerland?: Living costs about USD 3,850 a month for one person in Zurich, USD 2,450 in Sion, and around USD 2,350 on a bare-minimum budget (based on livingcost.org, 2026).
Can I run an online business from Switzerland?: Effective tax about 35% with the cheapest legal set-up, which costs about USD 3,000 a year: lump sum forbids work in Switzerland: an active business is taxed normally (~25-40%).
What is the catch in Switzerland?: Lump-sum taxpayers may not work in Switzerland.
What residence or citizenship programmes does Switzerland have?: Lump-sum taxation (+ residence for non-EU through it): about USD 20k all-in for one person, ~6 months

Compare

Monaco: 0% on foreign income · 0% on local income (French citizens excepted)
Andorra: 10% on foreign income (credit for tax paid abroad) · 10% on local income · 10% top
Italy (flat tax for new residents): EUR 300k a year flat on all foreign income and gains, whatever the amount · 43% on Italian income
Greece (non-dom): EUR 100k a year flat on all foreign income (+EUR 20k per family member) · up to 44% on Greek income
Cyprus (non-dom): 0% on dividends and interest (non-dom, 17 years) · 20-35% on work income · 0% on securities gains
Malta: foreign income: 0% unless brought to Malta (min. tax EUR 5k) · 35% top on Maltese income
Portugal (IFICI): 0% on most foreign income (IFICI, 10 years) · 20% flat on qualifying Portuguese work income · 48% otherwise
United Kingdom (FIG regime): first 4 years: 0% on foreign income and gains (FIG) · up to 45% on UK income · then worldwide

Compare all 53 places with your own income and budget →

Sources

https://www.estv.admin.ch
Living costs: based on livingcost.org (livingcost.org, June 2026), rounded