Switzerland is one of the most economically advanced countries in the world. It is one of the most stunning places to live and work. Some of the features that attract a huge amount of foreign investment are – government transparency, excellent infrastructure and ease to do business policies.
Geneva in Switzerland is located in the heart of Europe making it accessible through multiple modes of transportation. It is a paradise not only for nature lovers but also for investors. It boasts of an ancient Roman Amphitheatre on one hand, and modern art museums on the other. Switzerland with its white mountains and blue lakes is considered one of the safest and most beautiful countries in the world. Here are a few reasons to invest in this country:
Attractive Tax Regime: Since Switzerland is governed by a federal structure, there is a three-level imposition of taxes – Federal, Cantonal and Municipal Levels. However, tax relief is provided to the companies formed in the region and create employment opportunities. The countries coming here for business benefit not only from a liberal taxation system but also from double taxation treaties between Switzerland and other countries such as the US, China, Germany and Italy. Switzerland established corporate tax reforms in the year 2019 to make them internationally acceptable. Efforts were made to encourage SMEs and multinationals.
Technological Advancement and Innovations: Geneva boasts of an Exhibition of Inventions every year where participants get an opportunity to present ideas from a wide array of subjects such as medicine, transport, security and mechanics. It also serves as a hub of research institutes for the development of such innovations and ideas.
International Cooperation: Switzerland has always portrayed tolerance and boasts of a neutral conducive environment. Geneva in Switzerland is home to various international organizations including the UN Headquarters and other UN Agencies. Even sports organizations such as IOC (International Olympic Community) and FIFA have their place of business in Geneva. Such an environment makes Geneva a secure and ideal location for investment. The Greater Geneva Bern, located between Germany and France is a confluence of both cultures. One may find people influence by both these cultures and languages,
Welcoming Government and Supportive Authorities: In Switzerland, anyone can form and own a company provided the signee of the documents required is the resident of the country. Since the company has a federal structure, interrelationships between the investing companies and government personnel are long-standing. This often helps in the smooth setting up of the company and an easy administration process.
Multi-National Partnerships: The destiny of small and medium enterprises is being rebuilt via investments in Switzerland. By welcoming the multinationals to do business here, the government ensures the mutual development of nationals as well as multinational companies. This also gives Switzerland a chance to promote its innovations and technology. Hence, Switzerland is always looking for ways to attract more and more investors.
Highly skilled workforce: Switzerland is a magnet for talent as the living conditions and working conditions are excellent there. It is also very competitive in terms of productivity. Statistics indicate that the employees have longer working hours and fewer vacations. Another perk for investors here is that most of the workforce is multi-lingual .i.e. most of them know more than one language making it easy to communicate with customers of various geographical locations. Locations like Geneva are responsible for the development of multiple cultures. Switzerland has often been on top of records when it comes to the efficiency of education systems. Their schools and institutions are renowned globally for their training methods, mostly consisting of practical learning such as apprenticeship and vocational training.
Liberal, yet stable environment: Armed with a transparent political system, flexible labour laws and excellent health care and educational facilities, Switzerland serves a reliable business environment to lure investors. It has always been known for its efficient banking and financial system. Swiss Franc is one of the most sought after currencies that have stood strong crisis by crisis.
Some Programs for foreign investors: Geneva serves various investment incentives such as Unemployment Insurance Allowance, Tax Relief Measures, Loan Guarantees and Time Subsidies. Here are two key initiatives by the government of Switzerland:
Residence by Investment: The Switzerland Residency Program is granting citizenship to highly qualified investors. This is done as an incentive for foreign nationals to bring in talent and wealth to the country. Under the scheme, the Swiss permanent residence permit entitles an individual to reside in Switzerland with the same benefits as the Swiss Nationals. The funds collected through this and similar schemes may be used by the government to develop infrastructure. Foreign Citizens who have this permit can buy real estate property without any prior approval from the government. Citizenship acquired in this manner can be passed onto the next generation and there is no mandatory requirement to live or visit Switzerland. The passport provided entitles an individual to travel to 185 countries
Swiss Business Investor Program: Under the scheme, non-EU nationals either form a new company or need to invest in any existing Swiss company of turnover not less than CFH 1 million.
Looking at the above factors, it is needless to say that Switzerland is finding a place in the lists of investors, apart from chocolate lovers and tourists. Recent collaborative talks between India and Switzerland of a strengthened economic world post Covid-19 again reinstate our faith in investing in this country.