In recent years, more and more entrepreneurs chose to set up companies abroad, wanting to benefit from certain tax or legal advantages, which in some cases may even be favourable to foreign investors. Switzerland is a favourite location for many entrepreneurs, due to the taxation, the economic legislation, in continuous evolution, which offers plenty of advantages to foreign investors.
So, due to its economic and political stability, a transparent and fair legal system, this country is an attractive destination for starting a business. Also, reliable and expandable infrastructure and efficient capital markets play a very important role. To attract companies to invest in their jurisdictions, Swiss cantons offer numerous tax incentives. Thus, some of them go so far as to give up taxes for new businesses for up to 10 years.
Citizens of EU or EFTA member countries can easily set up a company in Switzerland or carry out different business activities in the country. Even if it is a small country, Switzerland is distinguished by its cultural diversity, is a very good test market for new products or services. Many companies test the reactions of potential customers on the Swiss market, before expanding their offer to other markets. For example, Starbucks, the famous US coffee company, opened its first European subsidiary in Zurich in 2001. Now, after more than 18 years, the coffeehouse chain is present in most European countries.
A strategic location for European markets, Switzerland benefits from economic, fiscal and political stability, a transparent administration and a central geographical position in Europe. In addition, labour market legislation is built on some liberal principles that come to the benefit of corporations. Overall, Switzerland is regarded as a tax haven, but low taxation is due in principle to the fact that more than 70 double taxation treaties have been concluded, which allows companies and foreign investors to benefit from lower tax rates. Taxes are levied at federal, cantonal and municipal levels, being among the lowest in the European region, both for individuals and for legal entities.
Swiss cantons and municipalities enjoy a high autonomy in terms of setting tax rates and deductions, except those imposed by the federal government. To attract investors, there is a real competition between cantons in terms of tax rates, which can only be beneficial for those who want to start a business in Switzerland. Transparency in the business environment is due to the fact that the bureaucratic processes for setting up a company have been greatly reduced. Swiss legal system allows relatively easy establishment of a new company, a process that usually takes about a few weeks. It is also possible to purchase real estate for commercial purposes without the need for special permits.
Cantons also offer a number of tax incentives for companies that create new jobs locally. This benefits the local economy, so there is a situation where everyone has to win. The federal government also provides various tax incentives for foreign companies.
For Switzerland, international investment is very important for economic growth, so it is a renowned country for direct investment due to exported industrial goods and services. At the same time, it receives great capital investments from abroad and the number of investors interested in opening companies in Switzerland is steadily increasing. The authority that sets out regulations and legal disciplines for foreign investment is the State Secretariat for Economic Affairs (SECO). Thus, bilateral investments and agreements (BITs) are protected against violations of international law. Also, market access conditions for obtaining fair and non-discriminatory activities are also negotiated by the SECO. At the same time, the authority is involved in formulating the investment policy for the Swiss Confederation.
The international investment rules relevant to Switzerland are coordinated by the World Trade Organization (WTO). However, it should be noted that Switzerland has not been involved in any major international disagreement on foreign investment in the recent past. That’s because of its transparent and liberal foreign investment policy. At the same time, to avoid foreign investors being taxed here and in their country of residence, Switzerland has signed double taxation treaties with a large number of countries.
You can find Mortgage rates as low as 1.5% over ten years.
Capital appreciation on property prices, should be on the rise due to the new law that makes it difficult for Suisse to build and own new secondary homes and forbids foreigners from building a new property. Hence; existing properties should go up in value due to the lack of new property stock available (Article from Sig Fiduciary).
The health care system in Switzerland is superb
The schools and universities are excellent
The transport system is clean and on-time (especially the trains).
The tax system is more beneficial.
The business start-up potential is excellent.
The opportunity for the whole family to enjoy a more active lifestyle.