Invest in Switzerland

Switzerland is very open to foreigners and has a diverse population. 22% of the whole population is made up from residential and temporary foreign workers which make for a high educated multilingual employment force. It also provides the employers with the choice of four languages besides English and these are German, French, Italian and Romansh. They are highly productive and create high-quality products and services. The majority of Swiss managers have more international experience than average.

 

Foreign businessmen who intend to invest in Switzerland should know that this country has one of the friendliest tax systems in the world. Many tax incentives are offered on both federal as well as cantonal level in Switzerland, in order to attract companies to establish operations and invest in their jurisdictions. In some cantons new investors can profit for a period of up to ten years of taxes free business.  This possibility, of being able to benefit from partial or full corporate income tax breaks for up to 10 years is also possible at a federal level.

 

However, tax breaks are available for investment projects that meet certain requirements, for example creation of new jobs or non-competition with existing businesses. When it comes to cantonal level, business incentives are generally granted in connection with the creation of at least 10 to 20 new local jobs. The Government also offers subsidized loans up to 25% of financing packages in order to encourage infrastructural investment in tourist facilities, communications and training facilities.

 

You can read about the reasons to invest in Switzerland in the infographic below:

 

Switzerland is one of the top 10 wealthiest countries in the world but it can be expensive to live in. However, the social benefits by far manage to outweigh the costs:  the public transportation system is very good and it offers the best health care system in the world.

 

It is viewed as one of the most appropriate countries to raise healthy, multilingual children due to its excellent education system, at the state school and academic level, also providing dual vocational training system. Children raised in Switzerland are provided with the opportunity to attend world-renowned universities, technical institutes or valuable R&D institutions.

 

If you want to invest in Switzerland and also move to this country, you should know that the Swiss have a great respect for personal privacy and have no prejudice against wealthy people. The residents enjoy great political stability not being exposed to war since 1515. The country offers the highest personal safety in Europe and social harmony. Switzerland remains the country with the highest quality of living according to a governmental survey, and it also has no official religious state.

Switzerland became perfect destination for investors due to its bank secrecy and monetary security policies. Strategically located on the continent of Europe, Switzerland has an accessible and first-rate infrastructure network for international trades. Its stability is also provided by the agreements signed with the European Union that offer a similar business environment as inside the EU. For instance, when carrying trading activities, foreign companies must use the EORI number in Switzerland, although this country does not have the EORI system implemented here. 

 

The Swiss franc has been rightfully viewed as a refuge through the years due to its stability over times. It was the currency of choice in the 1970s for Americans looking to escape rampant inflation because few other asset classes offered this much protection. Also nowadays, in a prolonged period of on-again off-again crisis, the Alpine country’s currency is viewed as one of the world's most popular safe-haven investment destinations.

 

Therefore judging from its political neutrality to its banking secrecy, the country has reputation for protecting valuables. But if adding strong economy, low national debt, low inflation, currency and price stability, low unemployment, efficient capital markets and a highly professional international banking system, Switzerland becomes a safe and appealing investment destination in its own right. 
 

 

Every investor managing a company in Switzerland must always pay attention to the country's credit rating. There are several rating agencies that evaluate every country’s economy on an annual basis and then award them with a rating. Basically this credit rating is an evaluation of the country’s ability to pay back its debt. A sovereign credit rating is the rating of a government; it indicates the risk level of the investment environment in a certain country. This is a complex indicator composed of numerous factors such as political risk, currency stability, GDP and many others. The most renowned rating agencies are Standard & Poor’s, Moody’s, Fitch.

 

All 3 major credit agencies mentioned above awarded a AAA credit rating for Switzerland. This is the highest rate that can be obtained and it means reflects a stable economy and low risks for foreign investors decided to open Swiss companies. AAA has an exceptional degree of creditworthiness and in means that the country can easily meet its financial commitments. The indicator is a measure of trust, often used by investors to gauge the credit worthiness of the country and therefore impacting Switzerland’s borrowing costs.

 

In a report issued in May 2014 Fitch agency announced the extension of AAA rating for Switzerland, stating that Switzerland is a “highly advanced, well diversified and wealthy economy with strong governance and a track record of sound economic policy”. The country managed to surpass the global financial and Eurozone crisis due to its durable economy with an increasing GDP indicator for the past 5 years.

 

The country’s public finances are strong in comparison to other European countries and investments opportunities are numerous. All measures applied by the Government regarding the fiscal framework are characterized by prudence and they confer strong credibility to the investment opportunity. 

 

These measures also succeed in attracting foreign investors by applying tax reductions in certain Swiss cantons.

Switzerland offers numerous investment opportunities for foreign entrepreneurs. Some of them are in the key economic sectors of the country and others can also be found in other emerging investment sectors with high potential.  The Swiss Government also offers investment incentives in the form of reduced rates that can apply at a federal and canton level. If you want to invest in Switzerland and wish to know more about the available aid for investors, our Swiss company formation consultants can help you.

The key sectors for foreign investment in Switzerland include the financial and banking sectors, the travel and tourism sector, medical and security equipment, construction, information technology and telecommunication, pharmaceuticals and others. Sectors that have a high potential for new investments are the bio- and nano- technology sectors or high-tech equipment. The trade sector is also a well-developed one in Switzerland. 

• • financial sector;
• • trade;
• • chemicals and plastics;
• • services sector;
• • electronics and energy;
• • watchmaking industry;
• • insurance. 

 

The Top 25 European Cities of the Future and Top 25 European Regions of the Future for 2016/2017 show Switzerland with 3 cities 

and 3 cantons present in the rankings.

 

The tops place Swiss cities Zurich, Geneva and Basel among the best in their category and Zug, Zurich and Geneva Cantons among the best in their category. Zurich ranks 6th, Geneva ranks 13th and Basel ranks 19th in the top. With respect to cantons, Zug was placed on the 6th position, Zurich on the 14th and Geneva on the 18th places. The tops measure the investment landscape of European cities and regions and represent important tools for assessing the levels of Foreign Direct Investment (FDI) in the near future.
 

The Swiss Stock Market-one of the most secure investment instruments

Opening a company in Switzerland