Residence permit in Switzerland when purchasing real estate

The procedure for purchasing residential and commercial real estate and obtaining a residence permit in Switzerland are related procedures. In the article “Purchasing real estate in Switzerland,” we said that owning real estate in the country does not give a foreign citizen the right to obtain a residence permit in Switzerland.

How to obtain a residence permit in Switzerland

Despite the above limitation, there are two ways to obtain a Swiss residence permit in the easiest way.

  1. Residence permit in Switzerland based on payment of an annual lump sum tax. Back in 1996, the Swiss authorities introduced a bill according to which foreign citizens could reside in the country by paying an annual tax to the budget of the region in which they reside.
    To obtain such a residence permit in Switzerland, a foreigner only needs to submit an application to the Cantonal Council and show a sufficient amount of funds in his account for living, then pay a fixed amount of tax annually. For each canton there is a certain entry threshold, and for each applicant the amount of the lump sum tax is set individually.
    However, the holder of this type of residence permit in Switzerland does not have the right to work and earn income in Switzerland. Also, the agreed amount of tax does not change depending on the amount of the applicant’s income outside the country – the recipient does not become a full-fledged tax resident of the country.
    On average, lump sum tax amounts range from €110,000 to €500,000 per year, depending on the canton and the background characteristics of the applicant.

  2. Starting a business. The second way to obtain a residence permit in Switzerland is to organize your own business in the country with the creation of at least 4 jobs for Swiss citizens and high start-up capital.
    Applications to create a business by foreign citizens are considered on an individual basis. To do this, it is necessary to submit a business plan to the relevant authorities, which must be truly interesting for the canton in economic and social terms. When obtaining this type of residence permit in Switzerland, it is worth considering that the recipient becomes a full-fledged taxpayer of the country, which means that not only income received in the course of running a new business, but also outside the country is taxed.

    Permanent residence when purchasing real estate in Switzerland.

    Purchasing real estate in Switzerland does not provide grounds for obtaining permanent residence. Permanent residence status can be obtained by foreigners who have been living in the country for at least 10 years with a Swiss residence permit.

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