Switzerland Overview
Switzerland ranks among the top countries in the world to live in due to its overall quality of living, with Zurich and Geneva frequently nominated as among the best cities in which to reside.
Historically, Switzerland has always maintained a neutral political stance internationally, a policy that has fostered a politically and economically stable environment. The combination of the country’s rich culture and heritage and its liberal attitude has given rise to one of the richest, most independent and organized societies. Switzerland boasts a multi-cultural and multi-lingual society, with four official languages and a growing trend to teach English at elementary school level. An ideal combination of political and economic stability, a clean and safe environment, excellent communications and transport links, efficient public services and relatively low tax rates, makes it the ultimate choice for business and residence.
Switzerland is home to a large number of international organizations, such as the International Red Cross, WTO, Universal Postal Union, The World Intellectual Property Organization, UNCHR, ILO and WHO.
The Swiss taxation system is consistent with the country’s reputation as a centre of international trade and finance. Many tax privileges have been introduced in order to encourage foreign investment in Switzerland, while there are very few restrictions on Swiss investment abroad. Investors and entrepreneurs as well as persons of independent means will normally find it easy to obtain a residence permit.
Key advantages of Residence in Switzerland
- Political, social and economic stability
- Multi-lingual, highly qualified and motivated workforce
- First-class infrastructure, excellent banking facilities
- Very attractive lifestyle and healthy environment
- Efficient and reliable public services
- Possible fiscal incentives for substantial investments
- Favourable taxation system with moderate tax rates
Residence in Switzerland
There are different types of residence categories in Switzerland and a distinction is made between European Union and European Free Trade Association citizens (EU/EFTA citizens) and other foreign persons (non-EU/EFTA citizens).
Due to the Free Movement of Persons Agreement concluded between Switzerland and the EU, it has become easy for EU/EFTA citizens to obtain residence status in Switzerland. The key requirements are to have either employment in Switzerland or to be a person of independent financial means.
Non-EU/EFTA citizens may obtain a residence permit on the basis of gainful employment (subject to a strict quota regime); as retirees with pre-existing close ties to Switzerland; or as financially independent persons who are not gainfully occupied in Switzerland and pay considerable amounts of annual taxes. For non-EU nationals, a Swiss residence permit gives visa-free access to the Schengen area, if their citizenship of origin does not already provide this privilege.
Switzerland is keen to attract not only large corporations but also small and medium sized enterprises and private entrepreneurs. Switzerland is business-friendly by tradition and offers a solution for every need and expectation. Its 26 cantons offer companies a wide range of opportunities. The advantages associated with Switzerland are complemented by the specific benefits of each of these locations.
Switzerland is often perceived as a very expensive country and accessible only to wealthy individuals and large companies. However, the overall cost of living and doing business in Switzerland compares very favorably with Germany, France, the Netherlands or the US, for example.
The Swiss tax system is very much in line with the country’s reputation as a center for international trade and finance. Many tax privileges have been introduced in order to attract foreign investment to Switzerland, while there are very few restrictions on Swiss investment abroad. Switzerland also has an extensive network of treaties for the avoidance of double taxation.