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