Switzerland Golden Visa: Benefits, Requirements, and Application Process

The Switzerland Golden Visa is an unofficial name for the investment route to obtaining a Swiss residence permit. It is also known as the Swiss Residence Permit through investment and is designed to attract high-net-worth individuals willing to make a substantial investment in the country’s economy.

The Swiss Golden Visa provides a pathway to residency for foreign nationals and offers numerous benefits, including access to a stable and high-quality living environment.

The primary routes to obtaining the Switzerland Golden Visa are through a business investment or a lump-sum tax agreement. Both methods require substantial financial input, ensuring that the visa is accessible only to those with considerable financial means. The choice of investment depends on the applicant’s personal and financial goals.

1. Residency in a safe and stable country. The Switzerland Golden Visa grants individuals the right to reside in one of the world’s most politically and economically stable countries. Recent studies and indices have consistently ranked Switzerland as one of the world’s most politically stable and low-risk countries due to its concordance, direct democracy, and strong rule of law.

Swiss crime rates are among the lowest globally, providing a safe environment for families and a secure place to protect assets. Switzerland ranks 6th on the 2024 Global Peace Index, according to Global Finance.

2. Free access to the Schengen Area. With the Swiss Golden Visa, investors can travel freely within the Schengen Area without additional visas. This is particularly beneficial for business professionals who need to travel frequently across Europe.

3. High quality of life. Switzerland is renowned for its high standard of living. According to Numbeo, Switzerland is acknowledged as the third best country in the world for quality of life. The country gained such a high ranking for its low pollution and excellent overall living conditions, although it ranked slightly lower due to the high cost of living.

4. Excellent business opportunities. As a hub for finance, technology, and innovation, Switzerland offers numerous business opportunities. Residents of the country can open accounts in reliable global banks and gain access to the European market.

Switzerland is home to headquarters of several famous companies, such as Nestlé, Novartis, Roche, Credit Suisse, and Swatch Group.

5. Attractive tax regime. The maximum federal income tax rate in Switzerland is 11,5%. Additionally, Swiss tax residents pay cantonal and municipal taxes which are levied at progressive rates. The combined maximum rate reaches approximately 36%. Cantonal and municipal net wealth taxes are also imposed.

In certain cases, investors can optimise their tax burden by paying a lump-sum tax instead of tax on global income. However, this requires the source country to have a Double Taxation Treaty with Switzerland.

6. Family inclusion. The Golden Visa extends to investors’ immediate family members. A spouse and children under 18 can enjoy the same rights in Switzerland as other residents, including living, studying, and seeking medical assistance in the county.

7. Pathway to Swiss permanent residency and citizenship. After holding the Golden Visa for 10 years, residents can apply for Swiss citizenship, which offers even more rights and privileges. For example, Swiss citizenship allows one to travel to 186 countries visa-free and live in EU countries without obtaining a residence permit.

Requirements for the main applicant. High-Net-Worth Individuals, HNWIs, are the primary candidates for the Switzerland Golden Visa. They must have the financial means to make a substantial investment in Switzerland. This group can include investors, business owners, entrepreneurs, and individuals with significant personal wealth.

To successfully apply for a Switzerland Golden Visa, foreigners must meet the following requirements:

• be over 18;

• not have lived in Switzerland for the last 10 years;

• have no outstanding convictions;

• be prepared to move to the selected canton and not work in Switzerland;

• be capable of confirming the legality of their income;

• prove that their annual worldwide expenses exceed the annual rental cost of the investor’s housing in Switzerland by at least 7 times.

The investor’s family. The Switzerland Golden Visa extends to the main applicant’s immediate family members. This typically includes:

• the main applicant’s legally married spouse;

• children under 18.

Family members enjoy the same residency rights, access to healthcare, education, and the potential pathway to permanent residency and citizenship.

To qualify for the Switzerland Golden Visa, applicants must make a significant financial commitment. There are two primary investment paths: investing in business and paying a lump-sum tax.

Business investment. Applicants make a direct investment in a Swiss company. Foreigners can either invest in an existing business or establish a new company in Switzerland. The minimum investment requirement is typically ₣1 million. The investment should contribute to the Swiss economy, such as by creating jobs or supporting regional development.

Lump-sum tax agreement. Candidates negotiate a lump-sum tax agreement with the Swiss authorities. This agreement typically requires a minimum annual tax payment of ₣450,000+ per year, depending on the canton and the individual’s income level. Social security contributions of ₣18,000+ are paid per adult family member.

The tax for non-EU citizens can reach ₣1,000,000 per year. For EU and EFTA citizens, tax payments are typically lower. This option is available to individuals who agree not to engage in gainful employment in Switzerland. Instead, they contribute to the Swiss economy through their tax payments.

Apart from the investment, investors should be prepared for additional costs such as legal fees, due diligence expenses, and application processing fees.

Applying for a Switzerland Golden Visa requires a range of documents to prove the investor’s eligibility and intentions. Key documents include:

• a passport, valid for at least six months beyond the intended stay;

• documentation confirming the investment, whether in a business or through the lump-sum tax agreement;

• evidence of financial standing, such as bank statements or proof of income;

• a police clearance certificate from one’s country of residence, showing no criminal convictions;

• proof of comprehensive health insurance that covers the investor and their family in Switzerland.

• documentation of one’s address in Switzerland, such as a rental agreement or property ownership documents;

• complete and signed application forms for a residence permit.

The Switzerland Golden Visa provides a pathway to permanent residency and, eventually, to citizenship.

Obtaining permanent residency in Switzerland typically requires living in the country for at least 10 continuous years. Applicants must meet the following conditions:

• have a valid residence permit;

• demonstrate integration into Swiss society;

• have adequate knowledge of one of the national languages;

• have no criminal record;

• be financially independent.

The right to apply for Swiss citizenship arises after 10 years of living in the country. This period includes the time that the investor lived in the country with a residence permit.

To qualify, an applicant for citizenship must:

• be a Swiss resident for 10 years;

• live in Switzerland for at least three years within the five years before applying for citizenship;

• obtain permanent residency;

• demonstrate integration into Swiss society, including language proficiency and knowledge of Swiss culture and laws.

Citizenship is not granted automatically: authorities make decisions on an individual basis. The application for citizenship undergoes three levels of approval: the federal, the cantonal level and the municipal level of a commune. Applications are typically processed for two to three years.

As a Swiss citizen, an investor gains rights and privileges in the country, including the opportunity to live and work anywhere in the EU and access to a powerful passport with extensive global travel freedom.

High cost of obtaining the Switzerland Golden Visa. The substantial investment required for the Switzerland Golden Visa can be a barrier for some applicants. It’s important to ensure having sufficient funds and financial stability before applying.

Complex application process. The process can be complex and time-consuming, requiring detailed documentation and compliance with strict regulations. Professional legal and financial advice can be crucial to navigate this complexity effectively.

Integration requirements. Achieving permanent residency and citizenship requires demonstrating integration into Swiss society, which includes developing language skills and acquiring cultural knowledge. This aspect can be challenging for those not familiar with the local customs or languages.

Regional differences. Tax agreements and investment requirements can vary significantly by canton. It’s important to research and choose a canton that aligns with one’s financial situation and personal preferences. Different cantons may offer varying advantages depending on their economic profiles and local policies.

1. The Switzerland Golden Visa offers a unique opportunity for high-net-worth individuals to secure residency in a country renowned for its economic stability, high quality of life, and attractive tax conditions.

2. Through significant investments in business or by entering into a lump-sum tax agreement, non-EU nationals can enjoy the benefits of living in one of the world’s most desirable locations.

3. The Swiss Golden Visa provides not just residency, but also the chance to travel freely across the Schengen Area, a pathway to permanent residency, and eventually citizenship in Switzerland. For those looking to relocate, invest, or simply enjoy a prosperous and secure life, the Switzerland Golden Visa represents an ideal gateway.