Vaud, Switzerland
Taxes, residence and daily life for people moving to Vaud, Switzerland: for a wealthy family, an expat employee and a remote worker. Researched .
Open Vaud in the interactive guide
At a glance
For an EU-citizen family of five living off a €30M portfolio, the guide's default reader. The interactive guide recomputes everything for other passports and situations.
- Score for a wealthy family
- 77 / 100
- Can EU citizens live here?
- free: register as an EU citizen
- Can US citizens live here?
- Non-EU retiree permit (age 55+)
- Other passports
- Non-EU retiree permit (age 55+)
- Tax on a €30M portfolio
- €541,353 a year · Lump-sum taxation (Besteuerung nach dem Aufwand / forfait fiscal)
- Wealth tax
- yes
- Children inherit
- taxed
- After 60 years
- €104,150,000 of €30,000,000 (with no tax at all: €286,928,000)
- Living costs, family of five
- €458,736 a year
- EU member
- no
- Currency
- CHF
Tax on investments, inheritance and wealth
Vaud, figures for Lausanne (cantonal coefficient 155% + communal 78.5%; cantonal income tax reduced by 5% in 2026). Dividends/income top marginal 41.5% (11.5% federal + 30% cantonal and communal ceiling, LICom art. 8). Wealth tax top marginal 0.792% (3.39 per mille x 233.5%; CHF 77,632 on CHF 10M). Children are taxed on inheritance (progressive to 3.5% cantonal, doubled by Lausanne), but the tax is halved for foreigners who never worked in Switzerland (LMSD art. 36): about 3.5% above CHF 1.3M per child. Lump-sum taxation available (CHF 445,000 a year on a CHF 1M base). Note: the '12%' initiative accepted on 27 September 2026 cuts the cantonal coefficient from the 2027 tax year.
- Ordinary taxation (national figures = City of Zurich): Ordinary residence taxation: federal income tax plus cantonal and communal income and wealth taxes. Switzerland has 26 cantonal tax systems; the national numbers here represent the City of Zurich (married couple, 3 children, no church membership). See data/subnational/CHE.json for all 26 cantons.
- Lump-sum taxation (Besteuerung nach dem Aufwand / forfait fiscal): Income and wealth tax are replaced by a tax on a deemed income equal to worldwide living expenses, at least the highest of: a cantonal minimum (federal: CHF 435,000 in 2026), 7x annual rent or rental value of the home, and the control calculation (ordinary tax on Swiss-source income and assets plus foreign income for which treaty relief is claimed). The ordinary tariffs are applied to that base. Not available in Zurich, Schaffhausen, Appenzell Ausserrhoden and Basel-Stadt; effectively not in Basel-Landschaft.
Income tax for employees and remote workers
Income tax in Switzerland is levied federally, cantonally and by municipality. For a single resident of the City of Zurich the combined 2026 marginal rate reaches about 41.0% between CHF 185,100 and CHF 793,900 (federal 13.2% plus Zurich cantonal 13% x 2.14). Employees pay AHV/IV/EO 5.3% and unemployment 1.1% (capped at CHF 148,200) plus non-occupational accident cover and pension fund; the self-employed pay about 10% AHV on net profit. Health insurance is a separate mandatory personal premium.
How to get residence
EU/EFTA citizens have free movement under the Agreement on the Free Movement of Persons: those who do not work get a B permit if they have sufficient means and health and accident insurance. US and other citizens have no investor route; the realistic options are a discretionary cantonal permit for wealthy people (usually paired with lump-sum taxation), a retiree permit, or a quota-limited work permit. Lump-sum taxation (tax on living costs, not on income) is available to non-working foreigners in most but not all cantons.
| Route | Kind | Who | Status | In short |
|---|---|---|---|---|
| EU/EFTA free movement, non-working person (B permit) | Free movement | EU citizens | open | EU and EFTA citizens who do not work can live in Switzerland with a five-year renewable B permit if they can support themselves and are insured. |
| Lump-sum taxation (Besteuerung nach dem Aufwand) with residence permit | Other | EU citizens, US citizens, other passports | open | Foreigners who move to Switzerland and do not work there can be taxed on their living costs instead of their worldwide income and wealth. It is a tax status that sits on top of a residence permit, not a permit itself. |
| Non-EU permit in the important public (fiscal) interest | Other | US citizens, other passports | open | Wealthy non-EU citizens without a job can sometimes get a discretionary cantonal residence permit because their tax payments are in the canton's interest. There is no fixed investment or income threshold. |
| Non-EU retiree permit (age 55+) | Passive income / retirement | US citizens, other passports | open | Retired non-EU citizens aged 55 or over can apply for a permit if they have close ties to Switzerland and enough money not to need social assistance. |
| Work permits (summary) | Work | EU citizens, US citizens, other passports | open | EU/EFTA citizens can take a job freely with an employment contract of at least 365 days (B permit, five years). Non-EU citizens need an employer, a permit under national quotas, and must be highly qualified. |
Citizenship: Ordinary naturalisation after 10 years of residence with a C permit (at least 3 of the last 5 years before applying); cantons and communes add their own residence minimums (2 to 5 years locally), integration and language tests.
Inheritance law and trusts
Children and the spouse are each guaranteed half of their intestate share, and a will cannot remove it. A foreigner domiciled in Switzerland can choose the law of one of their nationalities. Switzerland has no trust law but has recognised foreign trusts since 2007, and family foundations are allowed only for narrow purposes.
Daily life, scored out of 100
From public indicators (World Bank, UNDP, Transparency International and others); higher is better.
| Measure | Score |
|---|---|
| Safety and personal security | 82 |
| Political and institutional stability | 81 |
| Corruption and government integrity | 84 |
| Legal system and property rights | 84 |
| Healthcare quality and access | 92 |
| Education quality | 65 |
| Human development and quality of life | 94 |
| Infrastructure and connectivity | 95 |
| Cost of living and housing | 31 |
| Business opportunities and economy | 90 |
| Cultural fit and lifestyle | 70 |
Residence and succession sources
- Ausweis B EU/EFTA (Aufenthaltsbewilligung) — State Secretariat for Migration (SEM)
- Merkblatt über die Besteuerung nach dem Aufwand (gültig ab 1. Januar 2026) — Kanton Uri, Steuerverwaltung
- Calcul de l'imposition d'après la dépense — République et canton de Genève
- Becoming a Swiss citizen — State Secretariat for Migration (SEM)
- Swiss Civil Code (ZGB) — Swiss Federal Chancellery (Fedlex)
- Federal Act on Private International Law (PILA) — Swiss Federal Chancellery (Fedlex)
- HCCH status table: 1985 Trusts Convention — Hague Conference on Private International Law