What exactly is flat-rate taxation?

Flat-rate taxation is a special scheme for wealthy foreigners residing in Switzerland. Instead of declaring actual income and assets, the taxpayer pays taxes based on estimated annual expenses (accommodation, cars, travel, consumption). The minimum federal taxable income is CHF 435,000. Each canton sets its own thresholds. The regime, born at the beginning of the twentieth century on Lake Geneva, aims to attract wealthy people.

Why does Ticino collect more money from the lump sum despite the fact that taxpayers have fallen?

It is not yet clearly documented by the sources. Possible explanations include the increase in the calculation bases decided in 2014, the arrival of significantly richer taxpayers, or the general increase in estimated expenses. In 2024 Ticino collected CHF 189.5 million from lump sums, 71 million more than in 2016, despite the number of taxpayers having fallen by 152 units since 2012.

What are the causes of the decline in flat-rate taxpayers in Switzerland?

The Swiss reforms of 2014 increased federal taxation. International competition, particularly from Italy, has reduced the attractiveness of the regime. In addition, some taxpayers have switched to ordinary taxation, others have naturalized or married Swiss citizens (losing the privilege), and deaths should not be overlooked. From 2012 to 2022, flat rates in Switzerland fell from 5,634 to 3,478.

Which cantons have completely abolished the flat-rate regime?

Zurich, Schaffhausen, Outer Appenzell and the two cantons of Basel have independently decided to abolish flat-rate taxation. At the federal level, a popular initiative for abolition was put to the vote in 2014 but was rejected with 59% of the votes. The regime remains active in the main cantons: Valais (841 taxpayers in the ranking), Ticino (725), Vaud (706) and Geneva (520).

How much does a lump sum taxpayer pay each year on average?

In Valais, the canton with the highest number of lump sums, a taxpayer pays on average about CHF 150,000 per year in federal, cantonal and municipal taxes. In 2023, the Valais lump sums paid a total of 122.5 million francs. Amounts and averages vary from canton to canton according to local thresholds and calculation bases.

Ticino collects record from flat-rate taxation (cross-border guide)

Di Marco Ferrari · Published on 24 August 2026

Lugano lakeside with modern banking buildings overlooking mountains, representing wealth management in Ticino

In 2024 Ticino collected CHF 189.5 million from flat-rate taxpayers, 71 million more than in 2016. The paradox: fewer wealthy foreigners, but higher incomes.

Context

In a nutshell

In 2024 Ticino collected CHF 189.5 million from flat-rate taxation, +71 million vs 2016
Flat-rate taxpayers in Switzerland decreased from 5,634 (2012) to 3,478 (2022)
Valais leads with 841 taxpayers, followed by Ticino with 725

Key facts

What: Flat-rate taxation scheme for wealthy foreigners, based on annual expenses
When: 2024 (Ticino data); 2022 (latest national federal data)
Where: Mainly Valais, Ticino, Vaud, Geneva
Who: Wealthy foreigners from Europe (France, Italy, Germany, England, Belgium)
Record amount Ticino: CHF 189.5 million in 2024 on three levels (federal, cantonal, municipal)
National trend: Taxpayers dropped from 5,634 to 3,478 in ten years, but income rises in several cantons

An apparent paradox characterises the Swiss flat-rate taxation market: the number of wealthy foreigners opting for this regime is visibly falling, yet the cantons are collecting more and more money. Ticino perfectly embodies this contradiction. In 2024 it collected 189.5 million francs in total (federal, cantonal and municipal taxes), 71 million more than in 2016. At the same time, the number of its flat-rate taxpayers decreased: in 2022 they were 3,478 throughout Switzerland (the latest federal data available), down from 5,634 in 2012.

At the national level, the Valais leads the ranking with 841 flat-rate taxpayers, followed by Ticino (725), Vaud

Operational details

How flat-rate taxation works

The flat-rate taxation scheme, which was established on Lake Geneva in the 1920s to attract wealthy foreigners residing in Switzerland, is based on annual expenditure. The calculation takes into account the cost of living, which includes expenses for accommodation, cars, travel and other consumption. For federal tax the minimum taxable income is set at CHF 435,000. For those who own their own home, the threshold is at least seven times the annual rent or rental value of the property. The cantons also set their own thresholds, often different from the federal level.

Most flat-rate taxpayers come from Europe. In the Valais there are mainly French, English, Belgian, Dutch and Italian citizens. In Zug, about a quarter comes from Germany. The cantons that maintain the system claim that it favours investment, consumption and local employment. The Valais estimates about 4,000 jobs connected to flat-rate taxpayers, who in 2023 paid 122.5 million francs in federal, cantonal and municipal taxes.

The causes of the decline

The decrease in the number of flat-rate taxpayers is linked to multiple factors. One of the main causes is the growing international competition, in particular from Italy, which has begun to offer alternative tax regimes. The 2014 Swiss reforms also increased taxation, making it less

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Key points

The implications for the territory

For those living in cantons that maintain the flat-rate regime, the implications are concrete. The collection of hundreds of millions of francs affects the ability of cantons to finance public services, infrastructure, and social policies. In the case of Ticino, 189.5 million francs represent a significant component of cantonal taxation. At the same time, the influx of wealthy individuals affects the local property market, often driving up rents and property prices. The employment generated by these taxpayers — estimated at around 4,000 positions in the Valais alone — supports the local economy through consumption, investments, and job creation in the service sector.

For those moving to Switzerland as a wealthy individual, the flat-rate regime remains an option, although less attractive than a decade ago. The choice to opt for this regime requires a careful assessment of federal and cantonal requirements, as well as the local economic context. Those who sign a flat-rate contract are bound to pay based on estimated expenses, not actual income or wealth, which can be advantageous in some scenarios and less convenient in others.

What to do concretely

If you already reside in a canton with a flat-rate regime and want to understand your overall tax burden, it's useful to consult the tax calculator to visualize the federal, cantonal, and communal impact. If you are an entrepreneur or professional with ordinary income, you can compare your tax position with the cost of living and allowed deductions. If you work in a canton with a flat-rate and want to evaluate the economic benefits of the area (employment, investments, consumption growth), keep in mind that federal bases of calculation have hardened since 2014.

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Frequently Asked Questions

What exactly is flat-rate taxation?: Flat-rate taxation is a special scheme for wealthy foreigners residing in Switzerland. Instead of declaring actual income and assets, the taxpayer pays taxes based on estimated annual expenses (accommodation, cars, travel, consumption). The minimum federal taxable income is CHF 435,000. Each canton sets its own thresholds. The regime, born at the beginning of the twentieth century on Lake Geneva, aims to attract wealthy people.
Why does Ticino collect more money from the lump sum despite the fact that taxpayers have fallen?: It is not yet clearly documented by the sources. Possible explanations include the increase in the calculation bases decided in 2014, the arrival of significantly richer taxpayers, or the general increase in estimated expenses. In 2024 Ticino collected CHF 189.5 million from lump sums, 71 million more than in 2016, despite the number of taxpayers having fallen by 152 units since 2012.
What are the causes of the decline in flat-rate taxpayers in Switzerland?: The Swiss reforms of 2014 increased federal taxation. International competition, particularly from Italy, has reduced the attractiveness of the regime. In addition, some taxpayers have switched to ordinary taxation, others have naturalized or married Swiss citizens (losing the privilege), and deaths should not be overlooked. From 2012 to 2022, flat rates in Switzerland fell from 5,634 to 3,478.
Which cantons have completely abolished the flat-rate regime?: Zurich, Schaffhausen, Outer Appenzell and the two cantons of Basel have independently decided to abolish flat-rate taxation. At the federal level, a popular initiative for abolition was put to the vote in 2014 but was rejected with 59% of the votes. The regime remains active in the main cantons: Valais (841 taxpayers in the ranking), Ticino (725), Vaud (706) and Geneva (520).
How much does a lump sum taxpayer pay each year on average?: In Valais, the canton with the highest number of lump sums, a taxpayer pays on average about CHF 150,000 per year in federal, cantonal and municipal taxes. In 2023, the Valais lump sums paid a total of 122.5 million francs. Amounts and averages vary from canton to canton according to local thresholds and calculation bases.