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Why Invest in Switzerland

Invest in Switzerland

Due to the economic stability of the country and its powerful legal system, Switzerland is becoming one of the greatest business hubs. Economic stability is the main attraction for the foreign investors to invest in Switzerland. In order to attract foreign investment, huge incentives are offered and this makes Swiss taxation system even more competitive. Foreign investment in Switzerland is controlled and regulated by legal frame works that are mentioned below:

  • Swiss Code of Obligations
  • Securities Law
  • Cartel Law

Reasons to invest in Switzerland

As Switzerland’s geographical position offers openness to the European, African and Middle-Eastern markets, this is one of the country’s strong points. The pro-business environment created by the government in order to encourage investors who want to set up businesses in Switzerland as well as the Swiss infrastructure is another point in the favor of investment. In attracting investment the highly educated and trained labor force provides another important instrument which is flexible and reliable. Switzerland also provides high quality in organic and nanotechnology sector and which are progressing sectors in world’s economy.

In order to provide a friendly environment for investors, the government allows cantons to have their own regulations, tax incentives or exemptions and for all this, the government also encourages foreign investment. Some cantons offer a 10-year tax deduction for new companies, therefor attracting foreign business and investments.

International agreements for foreign investments in Switzerland

In order to create favorable conditions for foreign investors, Switzerland has adhered to the most important international treaties . Some of these treaties are:

  •           The World Trade Organization (WTO)– Switzerland has created its investment rules according to the General Agreement on Trade and Services (GATS) and the Agreement on Trade-Related Investment Measures (TRIMS) of the WTO.
  •           The Organization for Economic Co-Operation and Development (OECD)– According to the Code of Liberalization of Capital Movements of the OECD Switzerland will not discriminate any foreign investor member of the OECD.
  •           Bilateral Investment Promotion and Protection Agreements (BITs) – Switzerland has negotiated bilateral treaties and free trade agreements (FTAs) with other countries in order protect foreign investments.

Benefits of foreign investors in Switzerland

Along with the enjoyment of same tax regulation and corporate laws for both foreign investors and national investor, there are many other advantages for investors.

Some of these advantages are:

  •         The freedom of establishment ;
  •         The freedom of purchasing Swiss holdings;
  •         The possibility of buying and owning real estate properties;
  •         Subsidies for bank credits;

You can contact our lawyers in Switzerland for customized solutions for company incorporation.