Tax optimization in the middle of Switzerland How the super-rich meet with the authorities in secret
An undercover investigation by "WOZ" and "Correctiv.Schweiz" reveals how foreign wealthy individuals in Switzerland are not only shown ways to keep their taxes low by private banks, but also by cantonal tax authorities.
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- The weekly newspaper "Wochenzeitung" and "Correctiv.Schweiz" tested banks, law firms and tax offices with undercover research.
- The reporters came across authorities that actively give super-rich people tips on how to pay as little tax as possible.
- Flat-rate taxpayers benefit from a system that offers hardly any comprehensible advantages for normal earners.
When an alleged billionaire heir from Germany arrives in Zurich for a consultation, everything in the meeting room of a private bank seems to be business as usual. Dark wood, subdued lighting - and a book entitled "Tax havens" is emblazoned on the table. The scene looks like something out of a movie, but the meeting is real: an undercover team from "Wochenzeitung " and "Correctiv.Schweiz" is investigating how Swiss institutions deal with super-rich newcomers.
The supposed heir calls himself Elia Weiss, accompanied by an alleged wealth advisor named Stefan Hoffmann and an assistant. In reality, all three are part of an investigation. Weiss' role: a young man who claims to want to move to Switzerland with his family assets - and is looking for the most attractive tax solution.
The Zurich bank's tax expert welcomes the delegation with nostalgia. Earlier years were "more aggressive", he says, back then there were still "a lot of undeclared assets". He openly recommends the canton of Obwalden to Weiss - the administration there is particularly accommodating. The banker assures him that the authorities would "make the best tax deal".
The banker also makes it clear that Weiss doesn't really have to live there. A chalet in Verbier, a life in Valais, frequent stays outside the official canton of residence - anything is possible as long as you don't attract the attention of the local authorities.
Tax officials from the canton help with optimization
Another tip that the banker provides without being asked: Anyone who has around 10 million francs in their account can avoid this sum becoming visible during tax inspections. The key date is December 31. Many customers would therefore help themselves "from December 15 to January 15" with a fiduciary investment - a temporary transfer abroad, carried out by the bank in their own name. What happens before or after the cut-off date remains invisible.
However, it only becomes surprising when a government agency visits. In Uri, a tax official receives the alleged billionaire heir Weiss with a broad smile. The conversation soon turns to lump-sum taxation - the system under which wealthy foreigners can have their taxes calculated according to their worldwide expenditure rather than their income and assets.
For someone with declared assets of 500 million francs, this is "the most sensible solution", says the official. Then he adds: You could definitely fill out the questionnaire on expenses in a "leeway-oriented" way. Some values have to be realistic, but many things cannot be verified. Hobbies, for example - "if you say your hobbies cost 10,000 francs a month - we can't really check that".
When asked, the official explains that flat-rate taxpayers are regularly supported with calculation examples. And what's more: "To be honest, we partly control the taxpayers." For example, it is recommended to enter a little more in one category and less elsewhere. "We are, let's say, a service authority here, even if we shouldn't really be."
Swiss accounts remain invisible
The official goes on to talk openly about the advantages of Swiss banking secrecy - at least for wealthy individuals. While foreign accounts are automatically reported, custody accounts in Switzerland remain largely invisible to the authorities. "We find out about accounts abroad. Not accounts in Switzerland. That's the big joke," he explains.
Accordingly, it makes no difference to tax audits if assets change massively during the year. The decisive factor is what is listed at the end of the year. Even if a bank is "forgotten", this is not immediately noticeable - as long as the account is not declared later, as this would be a clear case of evasion.
When confronted with these statements, the head of the Uri tax office, Pius Imholz, contradicted the research collective. The authority is indeed a "service provider", but only within the legal requirements. He rejects the accusation of a targeted tax reduction. Lump-sum taxation is carefully examined and unlawful practices are not tolerated. It was an informal initial discussion.
Criticism from experts: "Completely absurd"
Tax expert Dominik Gross from Alliance Sud considers this confusion to be dangerous. In smaller cantons, the boundary between location promotion and tax authorities is often blurred. It is as if journalists were working closely with advertisement sellers - a system that almost inevitably encourages conflicts of interest. The fact that tax offices present themselves as "service providers" is "completely absurd", he emphasizes.
Despite low taxes for flat-rate taxpayers, the financial benefit for cantons is modest. According to a joint analysis by "WOZ" and "Correctiv.Schweiz", around 3,900 lump-sum taxpayers live in Switzerland. They contribute between CHF 30,000 and CHF 280,000 per person per year - a fraction of their assets.
It is not only an ETH study that shows that Switzerland attracts global attention with this special regulation. Even Oxfam criticized the practice in 2024 as a door opener for tax evasion. According to Oxfam, the canton of Uri in particular is aggressively promoting the model - with the statement that it makes Switzerland "attractive for financially strong people from abroad".
The annual "Bilanz" list of the 300 richest people also shows the trend: one in five people held a German passport in 2023.
The hidden heir who is actually demanding higher taxes
The alleged billionaire heir Elia Weiss is real - but in a different context. Weiss actually comes from a wealthy German business family. But instead of avoiding taxes, he is involved in the "Tax me now" initiative, which calls for higher taxes for the rich.
For the "WOZ" and "Correctiv.Schweiz" investigation, Weiss slips into the role of the arrogant young heir and travels through Switzerland in a Porsche, Rolex and designer outfits. Accompanied by Hoffmann, formerly a private banker and now a consultant for sustainable investments, he visits Bern, Gstaad, Uri and Zurich. The scenes - such as a banana that his "assistant" peels out of a wooden box - are deliberately exaggerated to test how far banks and authorities will go.
Gstaad - the showcase for the super-rich
Hardly any other place in Switzerland stands for the attraction of the extremely rich as much as Gstaad. Investigations by the "Bund" and "Berner Zeitung" show: There is hardly any other village where so much wealth is concentrated in such a small area. The list of owners there reads like a who's who of global billionaires - from DM heir Kevin David Lehmann to Bernie Ecclestone and the Sacklers.
«There is one tax system for the 99 percent - and another for the one percent.»
Even on inconspicuous days, the Promenade reveals its character: boutiques by Louis Vuitton or Hermès, perfectly manicured facades, handbags for over 9,000 francs in the shop window.
This is where Weiss and Hoffmann meet tax advisors, asset managers and consultants who all strike the same note: Gstaad is an ideal place for people like them. Proximity to airports, discreet clubs, solution-oriented tax authorities - it's all there.
A system that cements inequality
For Weiss, the real Weiss, the real scandal is something else: Switzerland operates a de facto two-tier system. "There is one tax system for the 99 percent - and another for the one percent," he says in the research by "WOZ" and "Correctiv.Schweiz". The idea that wealth is "earned" is often a myth. The decisive factor is who inherits - and how well the system works for the richest.
His conclusion: the imbalance must fall. Wealth should not determine how a society functions or which policies are financed.
Some cantons have already reacted: Zurich, both Basel, Schaffhausen and Appenzell Ausserrhoden have abolished lump-sum taxation - without any economic setbacks.
