Zug looks to break rules for rich foreigners

Multi-millionaires wanting to become permanent residents in the canton of Zug could be exempted from having to learn the local language under a proposal put forward by cantonal authorities.

Article 4 of the Swiss federal law on foreign residents stipulates that foreigners in the country should “familiarise themselves with Swiss society and way of life and, in particular, learn a national language.”

The law applies to those from outside the EU and ETFA.

But according to some in the canton of Zug – Switzerland’s richest canton – foreign multi-millionaires shouldn’t be obliged to learn the local tongue.

A proposal to revise the law in the canton would exempt those with a fortune of over 20 million and an annual income of one million francs from having to follow German language courses to obtain a C permit, newspaper Tages Anzeiger reported on Wednesday.

The move, which authorities feel is “in the fiscal interest of the canton” would benefit rich investors from countries such as Russia and South Africa who currently have to prove they speak German in order to obtain permanent Swiss residency.

According to the cantonal government, under the current law Zug risks losing such individuals who “have shown great interest in obtaining a permanent residence permit”.

Officials in the federal justice department fear that a loosening of requirements for residency permits could weaken the so-called Lex Koller law on the acquisition of real estate in Switzerland by non-residents, reports Tages Anzeiger.

Speaking to the paper, Bern-based migration specialist Alberto Achermann said the revision clearly infringes federal law as well as the Swiss constitutional principle of equality.

The proposal has divided political parties in the canton, being supported by the liberal FDP and right-wing Swiss People’s Party and opposed by the socialist SP and Green party.

The revision is currently being considered by the cantonal commission and a decision is expected in the coming weeks.

One of Switzerland's smallest cantons, Zug has a tax rate that is substantially lower than the rest of the country, which has attracted a high proportion of foreign residents.