Switzerland continues to uphold its reputation as a stable and attractive destination for expatriates seeking residency. The country’s well-established residency programs, such as the Swiss Residence Program for affluent individuals and the Swiss Business Investor Program, remain in place, offering pathways for non-EU nationals to establish residency through investment or business activities.

Citizenship & residency landscape

While there have been no significant changes to citizenship laws in the past months, Switzerland’s stringent naturalization process persists. Applicants are generally required to have resided in the country for at least ten years, demonstrate integration into Swiss society and possess adequate language skills in one of the national languages.

Notably, on October 30, 2024, a proposal was submitted to halve the residence requirement for Swiss citizenship from ten to five years. This initiative, known as the Democracy Initiative, aims to facilitate the naturalization process for expatriates and is set to be voted on in a nationwide referendum.

Prospective applicants should monitor the outcome of this referendum and consult with professionals to navigate the complex application processes and ensure compliance with all legal requirements.

Navigating international trade tensions

Switzerland’s tax system remains one of the most competitive globally, characterized by moderate personal income tax rates, favorable corporate tax structures and the absence of wealth or inheritance taxes at the federal level. This fiscal environment continues to attract multinational corporations and affluent individuals.

However, recent developments in international trade have posed challenges. On April 25, 2025, Swiss President Karin Keller-Sutter engaged in discussions with U.S. Treasury Secretary Scott Bessent to address concerns over new U.S. tariffs on Swiss imports. The Swiss government expressed confusion over the rationale behind the U.S. tariff calculations, which imposed a 31% to 32% duty on Swiss imports – significantly higher than on goods from comparable economies like the European Union, the United Kingdom and Japan. Despite these tensions, Switzerland has stated it has no intention of retaliating against the U.S., emphasizing the importance of maintaining open trade relations.

Domestically, Switzerland continues to offer tax incentives to attract foreign investment. Cantonal tax holidays and deductions for research and development activities are among the measures in place to encourage business growth.

Individuals and businesses considering relocation to Switzerland should stay informed about international trade developments and consult with tax professionals to understand the implications for their specific circumstances.

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