Flat Tax in Switzerland: How Expats Can Benefit from Relocating to Ticino

Switzerland has long been considered a prime destination for wealthy individuals seeking stability, privacy, and a favorable tax environment. Among the most attractive tools available to High Net Worth Individuals (HNWIs) relocating to Switzerland is the lump-sum taxation regime, commonly referred to as the "flat tax".

This system allows qualifying foreigners to pay a fixed amount of tax each year, regardless of their global income or wealth, as long as they do not engage in gainful employment within Switzerland. It is specifically designed for expats moving to Switzerland for lifestyle and personal reasons rather than business activities.

Choosing Ticino — the southernmost canton of Switzerland — offers unique advantages for expats. With its proximity to Italy, its Mediterranean lifestyle, and efficient Swiss services, Ticino stands out as one of the best choices for those seeking the benefits of the Swiss flat tax while enjoying a vibrant, accessible life.

Who Is Eligible for the Swiss Flat Tax Regime?

The flat tax regime is available to individuals who meet the following criteria:

• They are not Swiss nationals;

• They have not been taxed in Switzerland during the previous ten years;

• They relocate their tax residence to Switzerland;

• They do not carry out gainful employment in Switzerland, whether employed or self-employed.

This system is particularly attractive to retirees, global entrepreneurs, and ultra-wealthy individuals who wish to manage their affairs internationally while living in a secure and comfortable environment like Ticino or Lugano.

How the Flat Tax Works in Switzerland and Ticino

Instead of taxing worldwide income and assets, the Swiss flat tax is based on annual living expenses incurred in Switzerland. These expenses are multiplied by a predefined factor to determine the taxable base.

Most cantons — including Ticino — set a minimum taxable base. As of 2023, in many regions the starting minimum is CHF 400,000, though this amount can often be negotiated depending on your profile. In high-profile cantons such as Ticino, the annual tax bill may start from CHF 200,000 or more, making it especially suited to individuals with substantial wealth.

Every flat tax case requires individual approval and negotiation with cantonal tax authorities. Having expert support during the application and negotiation process is critical to success, especially when relocating to areas like Lugano where specific local nuances can impact your approval.

Why Ticino and Lugano Are Top Choices for Flat Tax Relocation

Choosing Ticino offers distinct advantages compared to other Swiss cantons:

• Language and Culture: Italian is the primary language, making the transition smoother for expats from Southern Europe or Latin America.

• Lifestyle: Lugano and the broader Ticino region blend Swiss efficiency with a Mediterranean atmosphere, offering a relaxed yet sophisticated quality of life.

• Proximity: Located just minutes from Italy, Ticino provides easy access to Milan, Como, and other cultural and financial centers.

• International Community: Ticino is home to a vibrant expat community, where residents can enjoy a wide network of relocation specialists, wealth managers, and legal advisors experienced in handling flat tax applications.

• Supportive Authorities: Cantonal authorities in Ticino are familiar with the flat tax structure and often show a welcoming attitude towards new residents under this regime.

Whether you're looking to settle in Lugano, Mendrisio, or the picturesque villages along Lake Maggiore, Ticino offers an exceptional setting to enjoy the full benefits of Swiss residency while maintaining close cultural ties to Italy.

Common Questions About the Swiss Flat Tax for Expats

Can I manage my international investments while living in Ticino?Yes. As long as you do not generate income through employment or self-employment within Switzerland, you are free to manage and grow your international investments.

Can digital nomads use the flat tax regime in Switzerland?Not exactly. The regime is meant for individuals who physically relocate to Switzerland and establish fiscal residency. However, if Switzerland remains your primary home and tax base, international travel is permitted.

How do I apply for the Swiss flat tax in Ticino?Applications must be submitted to the canton where you intend to reside — for example, in Ticino if you're planning to settle in Lugano or nearby. The process usually requires professional assistance to prepare a strong, well-documented case, including estimated budgets and a clear explanation of your relocation motives.

The Advantages of Choosing Ticino for Your Swiss Flat Tax Move

The flat tax regime in Switzerland is not for everyone. It is tailored to high-net-worth individuals who value stability, confidentiality, and a favorable tax framework, and who are willing to relocate their life to a welcoming jurisdiction like Ticino.

By choosing Ticino, you gain access to:

• A world-class banking system;

• Efficient infrastructure with excellent healthcare, education, and transport;

• A Mediterranean-influenced lifestyle;

• A highly supportive environment for international residents.

Whether you're envisioning a dynamic life in Lugano, enjoying the tranquility of Lake Lugano, or settling into the charming countryside, Ticino offers a backdrop that is both practical and inspiring.

Ready to Make Switzerland Your Next Home?

Ticino might be closer than you think. If you are considering a relocation to Switzerland under the flat tax regime, Knotted is here to guide you — from application to negotiation and settlement.

📩 info@knotted.ch

📱 WhatsApp us at +41 76 771 30 22 — Let’s make Switzerland your next home!