The case
Debts totalling CHF 1 bn massively restrict Lugano’s room for manoeuvre, which is why the city councillor responsible for finances, Marco Chiesa, wants to attract more ultra-high-net worth individuals (UHNWIs) to his city.
The commentary
In mid-November, the city wants to win UHNWIs over with Ticino’s beauty at an event hosted in London.
The city has seen a strong influx of lump-sum taxpayers in recent years, including wealthy foreigners who have no income in Switzerland and can, therefore, pay taxes based on their cost of living. There are currently around 1,000 lump-sum taxpayers living in Lugano. According to Chiesa, the richest 1 % pay 31 % of the taxes.
With the influx of UHNWI, property prices in Lugano have skyrocketed, and the traditional shopping streets have been indundated by luxury shops. The result of this development is that locals have been driven out.