Clarification of lump-sum taxation in Switzerland

In December 2002, the Swiss tax authorities published an information bulletin which clarifies the method of taxing foreign individuals with a high net worth. This was necessary principally because of the agreement between Switzerland and the European Union on the free movement of persons, which entered into force on 1 June 2002. The agreement allows EU citizens who are financially independent to become Swiss residents and to benefit from the lump-sum taxation regime in Switzerland. After introductory remarks, the article examines the conditions for lump-sum taxation and the basis of taxation, including the international aspects and procedural issues.