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.
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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.