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Why Invest in Switzerland

Why Invest in Switzerland?

Updated on Monday 21st September 2015

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Why-Invest-in-SwitzerlandForeign investors are attracted to Switzerland due to the economic stability of the country and its legal system. The Swiss taxation system is also a very competitive as incentives are offered in order to attract foreign investment. The main legal frame works regulating foreign investment in Switzerland are the Swiss Code of Obligations, the Securities Law and the Cartel Law.

Reasons to invest in Switzerland

Switzerland’s geographical position represents one of the country’s strong points as it offers openness to the European, African and Middle-Eastern markets. The Swiss infrastructure is another point in the favor in investment, as well as the pro-business environment created by the government in order to encourage investors that want to set up businesses in Switzerland. The highly educated and trained labor force provides another important instrument in attracting investment as it is flexible and reliable. Switzerland is known for having an advanced research sector that provides high quality in organic and nanotechnology. 

As mentioned above the government also encourages foreign investment as it allows cantons to have their own regulations, tax incentives or exemptions in order to provide a friendly environment for investors. One of the best examples is that some cantons offer a 10 year tax deduction for new companies.

International agreements for foreign investments in Switzerland

Switzerland has adhered to the most important international treaties in order to create favorable conditions for foreign investors. 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

Foreign investors mainly benefit from the same tax regulation and corporate laws as any national investor, but there are also 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.

 

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