Why invest in Switzerland?
The Swiss economy is an international leader in terms of stability, profitability and wealth. Over the past few decades, Switzerland has solidified its place at the top of the worlds best nations to invest in, with its very low taxes and business-focused government frameworks. On top of low taxes, the fact that Switzerland is a neutral nation has meant its currency, the Swiss Franc, has remained consistently stable and is resistant to normal currency swings.
Switzerland’s economic strength doesn’t end at its taxation though, its citizens are provided with some of the highest average incomes in the world and its quality of life is in the top 5 of nations around the world.
What is even more beneficial for investors is that Switzerland has a number of business opportunities for investors and offers a number of low-interest rates and beneficial business grants and schemes.
Investments in Switzerland
A number of national business connections that Switzerland has with the African, Middle-Eastern and European markets mean that investors and businesses will be presented with a number of international benefits. On top of these connections, geographically Switzerland is connected to more than 30 countries by road, making these connections even simpler.
The Swiss business climate offers a number of industry sectors which are highly profitable, well developed and backed by government initiatives, schemes and low taxes and fees.
A popular market for investors is the technology and IT markets as the Swiss government allows for a number of incentives and rebates on taxes when regarding cryptocurrencies and other technologies. On top of the tech sector, the Swiss business market is also popular with R&D companies and more so the advanced and high-tech research and development market. Tourism is also a key market in the Swiss business environment with a major 6% of all Swiss GDP coming from tourism alone.
The World Economic Forum’s Global Competitive Index had Switzerland listed at the 15th position on the leaderboard back in 2002, and by 2009 – due to staggering economic growth, an almost-flawless business growth regulation and a renewed focus on international investors – Switzerland climbed the ladder to take first place.
Swiss Business Hubs
To streamline investor business development and business operations, the Swiss Government has developed a sort of “one-stop-shop” system which is designed to create a seamless workflow of business development activities for those interested in Switzerland as an investment country. The program works as a way for investors to contact their manufacturers, or find new ones, as well as locate and interact with other essential business information.
As Switzerland is made up of 22% foreign and temporary workers, the country’s citizens are supportive and understanding of foreign nationals and there are very little signs of community prejudice against these workers. The highly diverse population in Switzerland also results in a heavily-multilingual society which extends to those employed in the country. This means that businesses have a range of options when employing workers, with a number of languages to choose from including English, German, French, Italian and Romansh.
The workforce is also highly educated and skilled, meaning that business offering high quality and technical services should have no issue sourcing talent for these positions.
A heavily business focused taxation system presents Switzerland as one of the worlds most investor and business friendly countries in the world. There is a range of tax incentives which are implemented across all three levels of the government allowing businesses to benefit greatly no matter where in Switzerland they decide to headquarter. One standout tax feature of the Swiss taxation system is that in some cantons a business is able to operate and profit for an entire decade without being required to pay taxes. On top of this, at federal levels, there are also 10-year long tax breaks available for certain businesses.
It’s important to note that these tax benefits are available under circumstances and often require a business to meet a number of requirements prior to the tax break being granted. When cantonal level governments are concerned, a number of businesses can expect tax reductions, incentives or breaks if the business can prove it will create a number of new jobs for the community, normally in the range of 10 to 20. As well as these cuts, on a federal level, there are also subsidised loans for businesses who plan to develop infrastructure in the country. These subsidies are in place to encourage businesses to develop facilities in the country, which are often tourism, communications or training focused.
As Switzerland features a workforce with high salaries, a society that is one of the worlds most liveable and a business focused economy, it can often be expensive and costly to live. Though, the benefits that Switzerland presents to its citizens is directly in correlation with the price of living. The nation is one of the most developed and offers state of the art healthcare and transportation systems as well as other utilities.
Millions of people around the world view Switzerland as a leading nation for raising a family with regards to healthcare, education, language skills as well as higher education. The job and career prospects that children raised in Switzerland are presented with are second to none. With direct access to high-tech and advanced businesses that focus on artificial intelligence, advanced research and development, leading universities and computer science companies, children raised in Switzerland are given opportunities that are unmatched by any other country on earth.
In Swiss culture, there is no apparent prejudice between the classes and in a general scope, the Swiss people are not negatively judgmental of those who are substantially wealthier than they are. The Swiss government has created an extremely people-focused government where there are major connections between the people and government, allowing open forums and citizen opinions run free. With no national religion or political stance, Switzerland has almost topped the UN’s most liveable nations list, coming in third, behind Norway and Australia respectively.
A primary focal point for investors in Switzerland is the stability of the banking and financial sectors. Unparalleled bank secrecy and other fund policies have meant that Swiss investors are well protected as well as benefit from an economy that is almost entirely resistant to the swings of the international economy. Switzerland’s location in Europe also means that it has been able to connect financially with European nations and benefit from trade agreements, further adding to economic stability.
For investors, the Swiss franc is often perceived as a currency refuge as over time it barely fluctuates in its worth. Since the early 70s, the currency has been utilised by American businessmen and companies to bypass any and all international and domestic inflation as the franc rarely changes its worth. With today’s highly unstable economy, the Swiss franc looks better than ever for investors to store their funds in as it has continued to remain incredibly stable.
Pairing the above currency stability along with low government debt, almost non-existent inflation, low unemployment and a strong economic growth, Switzerland show that it is one of the world leading investment nations and presents an almost-unlimited number of opportunities for businesses and investors.
For more information on the Swiss economy or investing and developing businesses in Switzerland, you can contact our business consultants and our company formation teams. This will give you all of the information you need to make a decision on whether to invest in the country and how to do it.