FROM FINLAND TO LUGANO: WHY IT'S A WINNING CHOICE

23/09/2024

Why would a Finn buy a house in Lugano and move there?

Lugano, with its international charm and Mediterranean climate, is one of the most sought-after destinations in Switzerland for those seeking a superior quality of life.

But why would a Finn, coming from a country known for the beauty and allure of its Nordic landscapes, choose Lugano to buy a house and relocate?

Let’s explore some (very) convincing reasons.

Switzerland vs. Finland: Tax Differences and Financial Benefits

The first undeniable advantage is the extremely favorable tax conditions offered by the Swiss system.

Finland has a progressive tax system with high rates that can exceed 50% for higher incomes, along with significant wealth taxes.

In contrast, the Canton of Ticino and Lugano offer much more favorable personal tax conditions. Switzerland has a decentralized tax system, with taxes at the federal, cantonal, and municipal levels. However, the overall tax burden is generally lower than in Finland, especially for high incomes and substantial wealth.

Lugano, in particular, offers an attractive tax regime for new residents, thanks to favorable tax programs like the flat tax, which allows negotiating a taxable base based on lifestyle rather than actual income.

Additionally, the absence of capital gains taxes on the sale of securities (stocks, bonds, etc.) and a lighter system for taxing dividends and interest on capital make Lugano particularly interesting for investors and professionals with significant wealth portfolios.

Switzerland vs. Finland Comparison:

• In Finland, the top rate of personal income tax can exceed 50%, while in Switzerland, depending on the canton, it hovers around 30-35%.
• Finland imposes significant wealth taxes, while in Switzerland, the wealth tax is relatively low and varies by canton.
• Inheritance tax in Switzerland is much lower or even nonexistent in some cantons, whereas it can be quite burdensome in Finland.

These tax aspects, combined with economic stability and quality of life, make Lugano a highly attractive destination for Finns seeking to optimize their tax situation without sacrificing a high-quality lifestyle.

Why Lugano: Climate, Location, and Safety

If the economic, financial, and tax reasons outlined above aren’t enough, there are many other reasons why a Finn would find life in Lugano very pleasant.

Here are a few:

1. Mild Climate and Unique Landscapes: One of the main motivations is surely the climate. Lugano enjoys mild temperatures year-round, a stark contrast to Finland’s harsh winters. Living in a city with over 2,000 hours of sunshine per year, surrounded by mountains, lakes, and lush vegetation, offers a completely different natural experience compared to Nordic life. Lake Lugano, with its crystal-clear waters, is one of the main attractions, ideal for nature lovers and those seeking outdoor relaxation.

2. Strategic Location and International Connections: Lugano is ideally located, just a few kilometers from the Italian border and well-connected to major European cities. The proximity to Milan, which is less than an hour away, provides direct access to one of Europe's main economic and cultural hubs.

3. Economic Stability and Quality of Life: Switzerland is known for its economic stability, and Lugano is no exception. The city offers a very high standard of living, with top-notch healthcare and infrastructure. The Swiss tax system is particularly advantageous, especially for those who wish to settle here as residents. 

4. International Community and Cosmopolitan Atmosphere: Lugano is a city that, although relatively small, has an international atmosphere. The presence of numerous financial and academic institutions, such as the renowned American school TASIS, Franklin University Switzerland, and the Università della Svizzera italiana, it has attracted a cosmopolitan community. This aspect could be appealing for a Finn looking for a multicultural and stimulating environment. Moreover, the Nordic expatriate community in Switzerland is growing, making it easier for those from countries like Finland to integrate.

5. Safety and Tranquility: Safety is a crucial factor when deciding to move to a new country. Lugano offers a safe and tranquil environment, where crime is minimal and the quality of air and water is excellent. For a Finn, already living in a country with a high level of safety, Lugano represents continuity in this respect, but with the added charm of a more Mediterranean atmosphere.

6. Leisure Opportunities: Besides the breathtaking scenery, Lugano offers a wide range of cultural and sporting activities. From numerous international events, such as "Lugano Arte e Cultura" (LAC), to hiking trails and water activities on the lake, the city offers something for all ages and preferences. 

7. Cuisine and Proximity to Italy: Swiss-Italian cuisine is another plus. Although Lugano is in Switzerland, it is influenced by Italian gastronomy. For food lovers, living in Lugano means having access to a variety of local dishes, and thanks to its proximity to Italy, the opportunity to enjoy Mediterranean culinary traditions.

In Conclusion

In conclusion, for a Finn seeking a life change, Lugano represents an ideal choice. The climate, quality of life, tax advantages, and scenic beauty make this Swiss city a perfect destination for those seeking a balance between personal well-being, financial opportunities, and professional growth.