Law verified as at 5 October 2026
The French law cited is the law in force at that date. It may change, in particular with the 2027 Finance Law. Swiss law is presented on the basis of federal legislation and information from the Federal Department of Finance: how it applies, largely at cantonal level, should be confirmed with a local adviser.
Switzerland is among the destinations studied by French people who are considering leaving France. The regime known as the lump-sum tax (forfait fiscal), more precisely taxation based on expenditure (imposition d’après la dépense), attracts a specific population there: foreign nationals with no gainful activity in Switzerland. Yet one technical point governs everything else, and it is rarely explained: a person taxed on the basis of expenditure may be denied the benefit of the France–Switzerland tax treaty.
The method for a departure is set out on our page on making a transfer of residence legally sound.
What is lump-sum taxation (taxation based on expenditure) in Switzerland?
Provided for in Article 14 of the Federal Act on Direct Federal Tax, this simplified assessment procedure is intended for foreign nationals who, for the first time or after an absence of at least ten years, take up domicile or stay in Switzerland for tax purposes, without carrying on any gainful activity there.
The tax base is not income but expenditure: the total annual cost of the lifestyle of the taxpayer and their dependants, incurred in Switzerland and abroad. The scheme has been revised: the amendments to the Federal Act on the Harmonisation of Direct Taxes of the Cantons and Communes came into force on 1 January 2014, and those to the Federal Act on Direct Federal Tax on 1 January 2016.
Implementation is largely a matter for the cantons, whose practices differ. Minimum amounts and calculation methods should be checked with the canton concerned.
The decisive point: lump-sum taxation and treaty residence
The treaty between France and Switzerland for the avoidance of double taxation with respect to taxes on income and on capital was signed in Paris on 9 September 1966. It was amended by amendments (avenants) of 3 December 1969, 22 July 1997 and 27 August 2009, by an agreement of 25 June 2014 amending its additional protocol, and then by an amendment signed on 27 June 2023, which entered into force on 24 July 2025.
Its Article 4, paragraph 6, b), introduced by the amendment of 22 July 1997, excludes from residence status “an individual who is liable to tax in that State only on a lump-sum basis determined by reference to the rental value of the residence or residences that he owns in the territory of that State” (unofficial translation; French text: “une personne physique qui n’est imposable dans cet État que sur une base forfaitaire déterminée d’après la valeur locative de la ou des résidences qu’elle possède sur le territoire de cet État”). According to the French administrative guidelines, persons liable to direct federal tax on such a lump-sum basis, as well as those subject to a cantonal tax calculated on a similar basis, are not entitled to the benefit of the treaty.
The consequence is direct. A person living in Switzerland under lump-sum taxation who receives French-source income cannot rely on the treaty caps on withholding tax, nor on the treaty rules for eliminating double taxation. On the French side, they are treated as an ordinary non-resident.
The French tax authorities used to accept, as a concession, that a person taxed on a lump-sum basis could, subject to conditions, be regarded as resident within the meaning of Article 4 of the treaty. This concession was withdrawn with effect from 12 September 2012, while remaining available for income of 2012 at the latest. This point determines the economic value of the plan and must be settled before departure, not after.
What France continues to tax
- French rental income, at the minimum rate of 20% and then 30% under Article 197 A of the French Tax Code (code général des impôts, CGI).
- The French real estate wealth tax (IFI) on French real estate only, above €1,300,000 on 1 January (Article 964 of the CGI).
- French real estate capital gains, at the 19% rate under Article 244 bis A, plus social levies. As Switzerland is neither a member of the European Union nor a party to the European Economic Area, an accredited tax representative must in principle be appointed (IV of Article 244 bis A of the CGI).
- Gifts and inheritances, in the cases set out in Article 750 ter of the CGI. The France–Switzerland treaty on inheritance taxes was terminated with effect from 1 January 2015: since then each State has applied its domestic law, with no treaty rule allocating taxing rights.
The exit tax under Article 167 bis of the CGI may apply on departure. Automatic deferral requires the host State to meet the conditions laid down by that article regarding administrative assistance and recovery: this point is checked at the date of departure; failing that, the deferral application must be filed no later than ninety days before the transfer, with security provided.
A worked example
A couple with no professional activity moves to a Swiss canton in 2026, under the taxation based on expenditure regime. They keep two let flats in France, together valued at €1,800,000 and producing €52,000 of rental income a year, as well as a portfolio of French securities generating €40,000 of dividends.
- Rental income: taxable in France, as the property is located there. The minimum rate applies: 20% up to €29,579, i.e. €5,915.80, then 30% on the remaining €22,421, i.e. €6,726.30. The minimum tax comes to approximately €12,642, excluding social levies and before deductible expenses.
- IFI: €1,800,000 of net taxable French real estate assets, above the €1,300,000 threshold. IFI remains due in France.
- French-source dividends: this is where the lump-sum question becomes decisive. If the couple cannot rely on the treaty, they do not benefit from the treaty cap on French withholding tax, and bear the domestic-law levy.
Depending on the amounts at stake, the cost of this single question may exceed the expected saving from cantonal lump-sum taxation.
Who this move suits, and who it does not
It may suit a person with no gainful activity in Switzerland, whose income comes mainly from third countries, and whose French assets are limited.
It is a poor fit for a person whose income is mainly French-source, for someone who would carry on a gainful activity in Switzerland, which closes access to the regime, and for someone whose French real estate assets far exceed the IFI threshold.
Key points
- Taxation based on expenditure under Article 14 of the Federal Act requires no gainful activity in Switzerland and a prior absence of at least ten years.
- Article 4 of the France–Switzerland treaty excludes from residence status persons taxed on a lump-sum basis determined by reference to the rental value of their residence.
- French income and real estate assets remain taxable in France, without any treaty cap if treaty residence is not recognised.
FAQ
Who can apply for taxation based on expenditure?
Foreign nationals who take up domicile or stay in Switzerland for the first time or after an absence of at least ten years, and who carry on no gainful activity there. Implementation is a matter for the cantons.
How is the tax base calculated?
On expenditure, that is, the total annual cost of the lifestyle of the taxpayer and their dependants, incurred in Switzerland and abroad. The precise rules should be checked with the canton concerned.
Does lump-sum taxation mean losing the benefit of the France–Switzerland treaty?
Article 4, paragraph 6, b), of the treaty excludes from residence status a person liable to tax only on a lump-sum basis determined by reference to the rental value of their residence; the French tax authorities also cover cantonal tax assessed on a similar basis. The concession that softened this exclusion was withdrawn in 2012: the situation must be examined before departure.
What happens to my flat in France?
It remains taxable in France on its income, for IFI above €1,300,000 and on the capital gain if it is sold, at the 19% rate plus social levies.
Does exit tax benefit from automatic deferral?
Automatic deferral requires the host State to meet the conditions of administrative assistance and recovery laid down by Article 167 bis of the CGI. This point is checked at the date of departure: failing that, the application must be filed no later than ninety days before the transfer.
Assessing your move to Switzerland
We deal first with the question of treaty residence, then with the treatment of French income and assets. See our notes on Italy’s new residents regime and on tax residence in the UAE, our article on property kept in France and tax expatriation lawyer in Paris. Every situation is different and deserves a dedicated analysis.
Official sources
- Tax treaty between France and Switzerland of 9 September 1966, consolidated text – impots.gouv.fr (in French)
- BOFiP, tax treaties between France and Switzerland – bofip.impots.gouv.fr (in French)
- BOFiP, lump-sum taxation in Switzerland and residence within the meaning of Article 4 of the treaty – bofip.impots.gouv.fr (in French)
- Federal Department of Finance, taxation based on expenditure – efd.admin.ch
- Federal Act of 14 December 1990 on Direct Federal Tax, SR 642.11 – fedlex.admin.ch
- Article 964 of the French Tax Code (code général des impôts), real estate wealth tax – Légifrance (in French)
- Article 244 bis A of the French Tax Code (code général des impôts), real estate capital gains of non-residents – Légifrance (in French)
- Article 167 bis of the French Tax Code (code général des impôts), exit tax – Légifrance (in French)
This article sets out the law for general information purposes, as verified at the date of publication. Foreign law is presented subject to confirmation by a local adviser. It does not constitute legal advice. Every situation is different and deserves a dedicated analysis. Content compliant with the professional conduct rules of the legal profession.
