Investing in Switzerland
There is a myriad of reasons as to why you should choose to launch a company in Switzerland. The country’s business-friendly legal structure and low taxation make it a prime nation for investing and Switzerland’s location in central Europe also make it a safer option than many other countries. So, if you’re looking to begin investing in Switzerland, we’ve listed a few reasons that should make your decision a lot easier to make.
The leading reasons for investing in Switzerland
Switzerland can easily be described as the Hong Kong or Singapore of Europe. Its unrivalled business market and asset management, as well as it’s prime location make it an investment nation that is one of the most stable and secure in the world.
A few things, in particular, make Switzerland a global leader in foreign investment, and we’ve listed them below.
- The country is in a relatively central European location.
- The enterprise environment is entirely open.
- It’s political outlook and International relations are exceptionally stable.
- The economy is supported by international partners as well as its own high-tech sectors.
- The banking system is designed for both local and international investing in Switzerland.
- The Swiss franc is one of the worlds most stable currencies.
- There is currently no foreign exchange control.
- Corporate loans are low interest and can be freely borrowed.
- The Swiss nation has a massive global network of infrastructure partners.
- Taxes and social charges are low and paired with great tax incentives
- VAT is low
- Labour laws are flexible
The above list truly outlines that Switzerland is an International leader when it comes to foreign and local investment. Stability alone makes it one of the worlds most secure places to invest.
Swiss tax incentives and other benefits
There are a couple of taxation incentives in Switzerland that businesses and investors can benefit from when investing in Switzerland is concerned. These incentives are typically geared toward foreign businesses and their income sources, mainly income from outside Switzerland.
If you have any business taxation questions in particular, feel free to visit our taxation services page for more information on how we can assist.
On top of income incentives, there are also freezes or ‘holidays’ where companies are granted pauses on taxes while they launch, or if they offer a specific Swiss Canton an economic boost or create a number of new jobs.
In short, there are two major incentives:
- Taxation incentives are granted to businesses that are almost entirely operated outside of Switzerland. In order to meet the requirements for this, a company must have at least 80% of their income coming from sources outside of Switzerland. On top of this, the company’s expenses must also be comprised of at least 80% out-of-Switzerland services and goods.
- Taxation holidays, of which can last up to 10 years, are also a great business incentive. In order to meet the requirements for these holidays, your business must be able to prove that in its operational location it is either; creating a myriad of new employment opportunities for local residents OR; creating great value for the canton in which it operates.
If you’re looking for some assistance when investing in Switzerland or expanding your business operations from outside the country and need some additional information, don’t hesitate to reach out to us for some extra help.