Interview - A New Home, a New Reputation: Rethinking Relocation to Switzerland

Beyond the tax incentive

Much of the public debate surrounding relocation focuses on taxation. Yet, having advised international families for more than three decades, do you find that tax is the only deciding factor, or are other considerations shaping clients' decisions?

Philippe Kenel: Factors such as legal and political stability, quality of life, and healthcare infrastructure are all considered when choosing between different jurisdictions. Clearly, for Switzerland to remain attractive to wealthy private individuals the lump sum taxation model is paramount.  

If relocation is no longer simply a tax exercise, what role does reputation play in determining whether that move is ultimately successful?

Ran Blayer: For a UHNWI or a family office, relocation is first a legal, tax, financial and personal decision. Reputation management will help ensure the move is understood accurately by the people who matter: banks, regulators, business partners, employees, the media and the new local community.

A relocation can easily be reduced to a tax headline however the reality is much broader. The individual may be moving a family, expanding a business, investing locally or becoming involved in the community. If reputation may not be the centre of the relocation process, it remains an important aspect, particularly for people whose name, business interests and history are already highly visible.

Successful integration

What would be your recommendations for ensuring the successful integration of a family deciding to relocate in Switzerland?

Philippe Kenel: I usually begin by explaining that relocation is not only a legal and tax process, but above all a personal one. It involves three stages: reflection, implementation and integration. At the reflection stage alone, two questions must be addressed objectively and honestly: whether the person is truly prepared to sever sufficient ties with their home country to avoid being treated as resident there, and in which country they genuinely wish to settle.  

From a reputation perspective, what distinguishes someone who genuinely becomes part of a new business community from someone who continues to be perceived as an outsider?

Ran Blayer: People become part of a business community by building relationships, working with local advisers and institutions, investing time, contributing economically or socially, and showing respect for the culture of the place.

Reputation will reflect those commitments. Credible actions such as a clear professional profile, relevant local activity but also trusted third-party references and consistent information across search and AI platforms can be more effective than a large amount of self-promotion.

The mistake is often trying to announce belonging before it has been earned. For internationally mobile individuals, particularly those with a high profile, credibility is built through presence, contribution and consistency over time. The digital narrative should make that visible, but it should never feel disconnected from the person's actual behaviour.  

Are there communication mistakes that can unintentionally undermine an otherwise successful relocation?

Laurent Ashenden: We recommend identifying projects you feel close to and for which you can commit time and efforts. They will speak for themselves. The best communication is the one other people will do indirectly on your behalf.

 Learning from high-profile relocations

There have been several widely publicised relocations, such as Patrick Drahi's or Jean-Frédéric Paulsen's. Looking back, what advice would you have given to help avoid the controversies that followed? 

Philippe Kenel: As I am not the lawyer of either Patrick Drahi or Frederik Paulsen, allow me simply a couple of basic observations. First, I have always taken the view that individuals should be free to change their domicile for any reason, including tax reasons. However, they must pay taxes where they actually live, both on an international level and – as regards Switzerland – on an intercantonal level. In Switzerland, it is particularly risky for a person subjected to lump sum taxation to reside in a canton other than the one in which they are taxed with the risk of reclassification. Second, as you know, a lump sum taxpayer may not carry out gainful activity in Switzerland. Tax authorities have also become increasingly strict when assessing whether serving as a director of a Swiss company, or carrying out gainful activity even abroad, is compatible with this regime.   

Why did these cases attract public interest and how can we prevent or mitigate their outcome ? 

Laurent Ashenden: To make headlines cases need one of following aspects: a large amount at stake, recognized persona or institutions are involved, or the case sticks out for its originality or seriousness. When any of those conditions exist, it is a signal that we need to anticipate potential issue(s), define scenarios and prepare a Q & A.

Demonstrating authenticity

What measures would you recommend to enhance the credibility of a relocation and demonstrate that it reflects a genuine change of residence and lifestyle? 

Laurent Ashenden: Integrate personally in the community. As to your social media presence, a clear, factual and credible digital footprint will reduce misunderstanding and support trust and perception. Never forget that the court of public opinion can be fierce and worse than a court of justice.   

From a legal and practical perspective, what factors distinguish a genuine relocation from one that risks being challenged by tax authorities or public opinion? 

Philippe Kenel: It is essential to reduce ties with the country of departure as much as possible and to build strong connections with the new country of residence. This is often easier when a family relocates with minor children, since their enrolment in local schools naturally shifts the centre of family life to the new jurisdiction.

 Looking ahead

Given the recent changes in the UK and the wider geopolitical landscape, do you expect Switzerland to remain one of the principal destinations for internationally mobile families over the next decade? 

Philippe Kenel: Switzerland will remain a leading destination for wealthy families as long as it preserves lump sum taxation model. It must also ensure that this regime does not become prohibitively expensive. To continue attracting wealthy non-European families, Switzerland should further ensure that obtaining a residence permit remains reasonably straightforward.   

How do you think AI, digital due diligence and online reputation is needed for a successful relocation ?
Ran Blayer: AI is accelerating a change that was already taking place. Banks, business partners, journalists, advisers and other stakeholders increasingly begin with digital due diligence, and they may now receive synthesised answers from an AI platform before they review individual search results. That answer can combine accurate information with outdated, incomplete or poorly sourced material. 

For internationally mobile individuals, this creates an additional layer of risk because their history may span several jurisdictions, languages and business activities. It also creates an opportunity: well-sourced, current and consistent information can make due diligence more efficient and reduce unnecessary questions. 

But AI should not be treated as authoritative, and online reputation does not replace formal compliance, legal records or KYC. The practical response is to monitor how the individual is represented across both search engines and AI platforms, identify material inaccuracies or gaps, and strengthen reliable sources. The objective is not to control every answer. It is to give stakeholders a more accurate basis on which to form a view.

 Digital reputation in cross-border relocation