Switzerland continues to attract high-net-worth individuals seeking stability, favourable tax treatment, and exceptional quality of life. But successful relocation requires navigating complex regulations and understanding evolving bilateral agreements.

In a recent PCD Group webinar, leading Swiss experts demystified the relocation journey, covering everything from the groundbreaking UK-Switzerland financial services agreement to property regulations and practical relocation strategies.

A New Era in UK-Switzerland Financial Services

The Berne Financial Services Agreement (BFSA), effective January 1st, 2026, represents a watershed moment for cross-border wealth management. Sébastien Collart of 100 Legal explained that this bilateral agreement establishes mutual recognition of financial regulation between the UK and Switzerland across banking, investment services, asset management, insurance, and financial market infrastructures.

"A UK client moving to Switzerland can now maintain their relationship with their UK advisor," Collart explained. The BFSA eliminates regulatory duplication and reduces costs, providing certainty and continuity that was previously complicated.

Important limitations apply: the agreement covers only wholesale professional clients and high-net-worth individuals with investable assets of at least £2 million. It's a services agreement, not a tax treaty, so relocators still require Swiss tax advice.

The Tax Decision: Lump Sum or Ordinary Taxation?

Stephane Joris, a Geneva-based tax lawyer at JNC Avocats, outlined the fundamental choice facing eligible relocators: ordinary taxation or lump sum taxation.

To qualify for lump sum taxation, you must be a foreign citizen relocating to Switzerland for the first time (or after a ten-year absence) and not engaging in gainful activity in Switzerland. Taxation is based on deemed income calculated from annual living expenses, seven times accommodation costs, or Swiss-source income—whichever is higher.

Minimum tax thresholds vary significantly by canton and depend if the taxpayer is EU citizen or not. For EU-citizens the minimum tax liability amounts. to approx CHF 140’000 in the canton of Geneva and to approx. CHF 100’000 in the canton of Valais. For non-EU citizens, the requirement to demonstrate "cantonal fiscal interest" pushes minimum tax liability to CHF 270,000 in Geneva.

Ordinary taxation follows a conventional approach, with the annual declaration of worldwide income and wealth. Certain foreign-source income and assets may be tax exempted but have still to be reported in the Swiss tax return since they could have an impact on the applicable tax rates. Switzerland's 26 cantons offer substantial rate variation—Geneva's maximum income tax reaches 41% (0.8% for wealth tax), while Grisons stands at 28% (0.3% wealth tax). Switzerland offers in particular capital gains exemptions on private assets and partial dividend taxation for shareholdings exceeding 10%.

Stephane Joris stressed pre-arrival planning, recommending wealth restructuring before relocation.

Property: Navigating Lex Koller and Lex Weber

Daniel Udry of 100 Legal clarified Switzerland's unique property regulations. Lex Koller applies to foreign non-residents in real estate transactions, potentially blocking purchases that don't meet specific conditions. Even Swiss residents without appropriate permits may face restrictions.

Foreign non-residents can typically purchase commercial establishments. In cantons like Valais, Vaud, and Zurich (but not Geneva), they may acquire secondary residences with area ties, subject to size limitations of 200 square metres living area and 1,000 square metre plots.

Lex Weber prohibits new secondary home purchases in municipalities where more than 20% of housing is secondary residences—significantly impacting luxury markets in Verbier, Crans-Montana, and Zermatt.

"There are essentially two markets—one for foreigners and one for locals," Udry explained. "Pricing differs substantially, but foreign-accessible properties offer greater liquidity."

Attempting to circumvent regulations through corporate structures won't work—authorities examine ultimate beneficial ownership, and misrepresentation can void transactions or trigger criminal offences.

The Reality of Relocation

Vincent Roduit, Co-Founder of Leovest Partners brought decades of practical experience to the discussion. With 34 years in Swiss financial services, Vincent emphasized that Switzerland attracts wealth through political stability, direct democracy, fiscal discipline, and a culture of praising wealth, wealthy individuals, entrepreneurship and success.

"Switzerland's fiscal debt-to-GDP stands at just 32.38%, compared to the UK at 106% or the US at 128%," Vincent noted. "This creates a predictable, stable environment that wealth creators value with unmatched financial security with its AAA-rated government debt.

The lump sum regime enjoys strong political support. In November's referendum, Swiss voters rejected a proposed 50% inheritance tax on estates and gifts over CHF 50 million by 74.1% —a clear message that wealth remains welcome, altough it would have only affected (this would have only affected 20’500 out of 9mio residents)

Vincent’s practical advice emphasized renting before buying a property, understanding the high cost of living, and working with advisors who understand both jurisdictions. For those relocating temporarily—such as entrepreneurs timing a business sale—careful coordination ensures fiscal efficiency while maintaining flexibility.

The Path Forward

Switzerland's combination of stability, sophisticated financial infrastructure, and favourable tax treatment continues to attract discerning families. Success requires expert guidance across legal, tax, property, and wealth management—but for those who navigate it well, Switzerland offers an unmatched environment for wealth preservation and quality of life.

For tailored advice on Swiss relocation or to access the full webinar recording, contact the PCD Group team.