In our previous newsletter The 5 Strategic Pathways to a Swiss Residence Permit we analyzed the 5 magic paths to a Swiss residence permit. One of these paths is the residence permit for wealthy private investors over the age of 55. You could say: 50 is the new 30 – at least when it comes to energy, ambition, and prospects!
Switzerland has long been one of the most desirable destinations for wealthy private investors. In addition to political stability, an excellent healthcare system, and a high quality of life, Switzerland impresses with its central location in Europe and predictable tax environment. However, for individuals from third countries – that is, outside the EU and EFTA – the question arises: under what conditions is legal residence in Switzerland even possible? Our law firm has been advising international clients in this area for many years. In this article, we answer the five key questions we encounter most often in practice:
What are the requirements for non-EU/EFTA citizens planning a new chapter in Switzerland?
A residence permit for a non-EU/EFTA citizen in Switzerland is legally possible, but tied to a number of conditions [1]. First, a minimum age of 55 is required [2]. In addition, any gainful employment in Switzerland is excluded, whether as an employee or in self-employment [3]. However, passive asset management, investment activities, or board mandates without an operational role are permitted. The individual must be able to fully support themselves financially [4], which generally requires annual personal funds between CHF 100,000 and CHF 300,000 depending on the canton. Comprehensive health and accident insurance covering all relevant services is also mandatory.
Particularly important – and often overlooked – is the required connection to Switzerland [5]. This connection must exist independently of family ties. Suitable examples include previous education at Swiss boarding schools or universities, professional stays, regular holiday visits (evidenced by passport stamps or hotel bills), or existing private or business networks within the country. Family members such as children or spouses alone do not count as sufficient connection to Switzerland in this context. The cantonal migration authorities assess these requirements on a case-by-case basis. This makes it all the more important to submit a strategically prepared application with well-documented life circumstances.
Are there differences depending on the canton?
Another important factor concerns the differences in approval practice between the cantons. While the Federal Act on Foreign Nationals and Integration (AIG) and the Ordinance on Admission, Stay and Gainful Employment (VZAE) apply nationwide, the implementation varies by canton. For example, Geneva, Vaud, Ticino, and Valais are considered open to wealthy private investors over 55 with a clear life plan and connection to Switzerland. Other cantons such as Zurich or Basel-Stadt are more restrictive. It is worthwhile to analyze the legal and tax conditions early – ideally with expert legal and tax advice – when selecting the future place of residence.
Geneva and Vaud increasingly consider economic factors, such as potential local consumption or existing property ownership. In Ticino, cultural ties (e.g., Italian-speaking background or frequent stays in the canton) may be viewed positively. Valais is particularly flexible with applications where a strong connection to a specific municipality can be demonstrated, such as through repeated stays or property ownership. In contrast, Zurich regularly rejects applications if the connection to Switzerland is deemed “too weak” or the financial commitment insufficient. Basel-Stadt also applies strict standards and tends to reject applications without demonstrable added value for the canton.
Can wealthy private investors with a residence permit buy real estate in Switzerland, or do they face additional hurdles?
A common concern of our clients is the purchase of real estate in Switzerland. Even with a valid residence permit B, but without a permanent residence permit, wealthy private investors who are not nationals of an EU or EFTA member state are still considered “persons abroad” under the Swiss Federal Act on the Acquisition of Real Estate by Persons Abroad (so-called Lex Koller [6]). Nonetheless, a wealthy person with a residence permit can purchase a primary residence (single-family house or condominium) at the location of their lawful and actual residence without a permit [7].
The purchaser must occupy the property themselves; renting, even partially, is not permitted. The permit-free acquisition of a primary residence can only take place in the purchaser’s personal name [8]. The land area must not exceed 3,000 m² [9].
The acquisition of holiday homes or secondary residences remains restricted and subject to approval.
How does a residence permit affect later acquisition of citizenship or family reunification?
Under certain conditions, residence leads to acquisition of citizenship and allows for family reunification. However, this does not happen automatically.
Ordinary acquisition of citizenship requires, among other things, ten years of residence in Switzerland [10], integration into society [11], and language skills [12]. Non-working individuals must also demonstrate their social and economic integration in other ways. This can be done, for example, through social engagement, club memberships, or regular participation in local community life. Authorities closely examine whether someone actively participates in social life rather than merely being “formally resident.”
Family reunification is also possible but subject to clear rules: it applies only to spouses and minor children and requires sufficient living space and financial independence [13]. Deadlines for reunification vary depending on residence status and nationality – for non-EU/EFTA citizens, spouses must generally be reunited within five years [14]. For children, proof is often required that they already belonged to the household in the country of origin. Forward-looking reunification planning is therefore crucial, as late applications can lead to rejections.
What are the tax implications of taking up residence in Switzerland?
In terms of tax treatment, Switzerland offers the attractive option of lump-sum taxation, available to non-working foreign individuals with tax residence in the country. The tax is not based on actual income or wealth but on living expenses. However, this type of taxation is regulated differently across cantons – while it is available in Vaud, Valais, or Geneva, it has been abolished in Zurich, Basel-Stadt, and Schaffhausen. A careful tax review is strongly recommended, particularly with regard to potential double taxation agreements with the country of origin, to avoid unexpected tax consequences.
For more on lump-sum taxation, see our detailed insight here: Swiss Lump-sum Taxation – Advantages for High-Net-Worth Individuals Relocating to Switzerland.
Conclusion
In summary, residence in Switzerland as a wealthy non-EU/EFTA citizen over 55 is legally possible but subject to clear conditions. The success of such an application largely depends on careful preparation, solid documentation, and choosing the right location. Our law firm will gladly support you at every stage – from initial consultation to application filing, tax optimization, and planning for family reunification.
If you are planning a new chapter of your life in Switzerland, we are happy to support you – feel free to contact us.
[1] See in particular Art. 28 AIG.
[2] See in particular Art. 25 para. 1 VZAE.
[3] See in particular Art. 25 para. 3 VZAE.
[4] See in particular Art. 25 para. 4 VZAE.
[5] See in particular Art. 25 para. 2 VZAE.
[6] See in particular Art. 5 para. 1 lit. abis BewG in conjunction with Art. 2 para. 3 BewV.
[7] See in particular Art. 2 para. 2 lit. b BewG.
[8] See in particular Art. 8 lit. a BewV.
[9] See in particular Art. 18a para. 2 lit. c BewV.
[10] See in particular Art. 9 para. 1 lit. b BüG.
[11] See in particular Art. 11 BüG.
[12] See in particular Art. 12 para. 1 letter c BüG.
[13] See in particular Art. 44 AIG.
[14] See in particular Art. 47 para. 1 AIG.
