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Knowledgebase

Invest in Switzerland

Alex Buri, Off-Counsel
15 May, 2025

Table of Contents

Quick Facts

Aspect

Details

Special foreign investment laws

No special legislation for foreign investors

Types of business forms

Sole proprietorship, partnership, association, limited liability company

Appealing industries

Banking, insurance, manufacturing, IT, R&D

Restrictions on foreign investments

No, but some sectors require special authorization

Special requirements for investors

Residence permit required to live and invest in Switzerland

Hiring local workforce

Yes, highly skilled workforce available

Relocating foreign employees

Yes, with work permits

Company registration timeframe

Approximately 4 weeks

Investor visa availability

No

Real estate ownership

Yes, with cantonal authorization for residents

Government programs

Loan guarantees for SMEs

Investment incentives

Patent Box Regime, Foreign Tax Credits

Income tax

Federal: 8.5%; Cantonal: 11.34%–19.70%

Double tax treaties

Around 80 in place

Assistance with company setup

Yes, full support available

 Invest in Switzerland

Invest in Switzerland

Switzerland is globally recognized for its modern, wealthy, and stable economy. Its low tax burden makes it one of the most attractive jurisdictions among developed nations. Switzerland’s economic stability is further enhanced by its commitment to Bank Secrecy, making it a prime destination for international investors seeking secure financial solutions. A combination of economic neutrality and minimal inflation has elevated the Swiss franc as one of the strongest global currencies. For those seeking comprehensive Company management, we provide end-to-end solutions for establishing and operating foundations in compliance with Swiss law.

The country also offers some of the highest wages in Europe, and its overall standard of living consistently ranks among the highest in the world. Favorable interest rates, in addition to a supportive business climate, contribute to Switzerland's appeal as a secure and lucrative destination for investment.

Investments in Switzerland

Located at the crossroads of Europe, Switzerland offers direct access to over 30 countries via road networks. Its central geographic location supports extensive trade links with Europe, Africa, and the Middle East.

The nation offers high-end infrastructure and a robust business ecosystem, making it a perfect environment for launching innovative products and technologies. Switzerland is a global leader in research and development spending. Its tourism sector contributes approximately 6% to GDP and remains a fundamental part of the economy. Foreign investors considering establishing a business in Zurich can benefit from the city's reputation as a financial hub. More insights are available regarding Business in Zurich.

Switzerland's climb in the World Economic Forum’s Global Competitive Index—from 15th in 2002 to 1st by 2009—reflects its dynamic economic strategy and stable policy environment.

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Swiss Business Hubs

The Swiss government has developed a “one-stop-shop” initiative to attract both domestic and foreign entrepreneurs. This hub streamlines access to service providers, manufacturers, and initial contacts required to successfully start a business in Switzerland.

Such centralized support helps international investors navigate legal, financial, and logistical matters efficiently. For those planning to open a company in Switzerland, understanding the Company Registration process is crucial to ensuring compliance and business success. This initiative is a key reason Switzerland continues to attract growing numbers of foreign business entities.

Workforce and Taxes

Switzerland is home to a multilingual, multicultural workforce, enriched by the presence of foreign nationals who make up over 20% of the total population. This diversity fuels innovation and adaptability, particularly in international business settings. In addition to English, workers frequently speak German, French, Italian, and Romansh—Switzerland’s four national languages.

Employees in Switzerland are highly qualified and efficient, with many managers possessing substantial international experience. This helps companies maintain competitiveness on the global stage.

The Swiss tax system is one of the most favorable in Europe. Businesses benefit from incentives offered at both federal and cantonal levels. In some regions, investors can enjoy corporate income tax holidays for up to ten years, especially when the project contributes to job creation or supports economic development.

Cantonal incentives often require the creation of a minimum of 10 to 20 local jobs. Expats relocating to Switzerland should also consider the tax implications, particularly for income earned abroad. Detailed guidance is provided for Expat Taxes. The federal government also backs infrastructure development by offering subsidized loans of up to 25% of the total financing, particularly in tourism, transport, and vocational education.

Adam Abdellaoui

Off-Counsel
+41 (44) 5152530
Social Benefits

Social Benefits

Though Switzerland has a high cost of living, the range and quality of public services more than compensate. The public transportation system is reliable and efficient, while the healthcare system is often ranked among the best in the world.

The country offers an exceptional education system, with public schools providing strong academic foundations and a dual vocational training model that prepares students for careers in various industries. Access to world-class universities and technical institutions is another asset for families relocating to Switzerland.

Foreign nationals benefit from a safe and inclusive society, where privacy is respected, and wealth is not stigmatized. The country has remained neutral in military conflicts since 1515, providing unmatched political stability. With no official state religion and high personal security, Switzerland consistently ranks at the top of global quality of life indexes.

Stable Economy

Switzerland’s reputation as a global investment haven is largely built on its financial and monetary stability. The country’s long-standing neutrality and robust governance have cultivated an environment of economic consistency. Its infrastructure supports efficient cross-border trade and logistics, benefiting from its location in central Europe.

Although Switzerland is not part of the European Union, it maintains bilateral agreements that align many of its regulations with EU standards. One example is the requirement for foreign businesses trading with Swiss entities to use an EORI number, even though Switzerland is not formally part of the EU’s EORI system.

The Swiss franc has long served as a safe-haven currency, historically chosen by investors seeking shelter from inflation or financial instability. Its reputation for strength remains intact, particularly during global economic uncertainty.

Additional pillars of the country’s economic appeal include low inflation, low unemployment, a professional international banking system, and highly efficient capital markets. These features make Switzerland not only stable but exceptionally attractive to long-term investors.
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Switzerland’s Rating for Investments

International investors often rely on sovereign credit ratings to assess a country's financial reliability. Switzerland consistently earns the highest AAA ratings from the world’s three leading credit rating agencies: Standard & Poor’s, Moody’s, and Fitch.

This top-tier rating reflects Switzerland’s strong public finances, prudent fiscal policies, and well-diversified economy. In its 2014 report, Fitch reaffirmed Switzerland’s AAA rating, citing the country’s resilience during global financial and Eurozone crises, as well as its steady GDP growth over several years.

A high sovereign credit rating lowers borrowing costs for the country and increases investor confidence. It also signifies minimal default risk, making Switzerland a particularly secure destination for foreign capital.

Most Attractive Investment Industries in Switzerland

Switzerland offers a wide spectrum of opportunities for foreign investors across both traditional and emerging sectors. To encourage foreign capital, the Swiss federal and cantonal governments have introduced a range of incentives, including tax reductions and infrastructure support.

Key investment sectors include:
  • Financial services and banking
  • Tourism and hospitality
  • Medical and security technology
  • Construction and infrastructure development
  • IT and telecommunications
  • Pharmaceuticals and biotechnology
  • Nanotechnology and high-tech manufacturing
  • International trade and logistics
Construction: A Leading Investment Sector

Construction: A Leading Investment Sector

Among the sectors drawing substantial foreign investment, construction stands out. Switzerland, along with countries like Germany, Sweden, Austria, and Norway, has maintained steady investment growth over the last decade.

Before the economic downturn, construction accounted for about 24% of the nation’s GDP. While the crisis caused a decline, the sector has rebounded to contribute approximately 24.5% of GDP today. This recovery underlines Switzerland’s ability to restore economic momentum and makes construction a key sector for future expansion.

Other High-Potential Industries

Foreign investors are also finding opportunities in:
  • Chemicals and plastic production
  • Energy and electronics
  • Watchmaking and precision engineering
  • Insurance and reinsurance
  • Business and professional services
These industries reflect the diversity and depth of Switzerland’s economy, making it one of the most versatile destinations for global investment.

Investing in Switzerland

Although Switzerland is not an EU or EEA member, it has signed numerous bilateral and multilateral agreements, including free trade treaties that protect and support foreign investment.

Foreign nationals are granted freedom of establishment, allowing them to open and operate businesses across a wide range of sectors. However, acquiring real estate and obtaining residence permits requires compliance with specific cantonal and federal regulations.

Switzerland’s regulatory consistency and investor protections make it a top choice for setting up subsidiaries, branches, or standalone entities. Multinational corporations continue to select Switzerland as a central hub for European operations due to its infrastructure, legal transparency, and political neutrality.

Adam Abdellaoui

Off-Counsel
+41 (44) 5152530

Zurich, Geneva and Zug Canton – The Best Places to Invest

Switzerland’s investment appeal is enhanced by the economic prominence of specific cities and regions. According to the “Top 25 European Cities of the Future” and “Top 25 European Regions of the Future” rankings for 2016/2017, Switzerland had multiple entries.

Among cities, Zurich ranked 6th, Geneva 13th, and Basel 19th. In terms of cantons, Zug was ranked 6th, Zurich 14th, and Geneva 18th. These rankings measure Foreign Direct Investment (FDI) potential and reflect the quality of infrastructure, innovation, economic strength, and international connectivity.

Zurich is known for its financial services and corporate headquarters; Geneva excels in diplomacy, trade, and global organizations; and Zug has earned a reputation for low taxes and a thriving startup ecosystem. Together, these cities represent Switzerland’s economic core and offer exceptional opportunities for foreign investors.

The Swiss Stock Market

Switzerland hosts one of Europe’s most secure and efficient stock markets. The primary exchange, SIX Swiss Exchange in Zurich, is a central hub for securities trading. It is complemented by the Berne Exchange, which handles a substantial share of the market.

Swiss companies benefit from transparent regulations, strong investor protections, and diverse financial instruments, including equities, bonds, ETFs, and derivatives. The country’s financial infrastructure ensures both liquidity and stability, attracting domestic and international participants.

The strength of the Swiss stock market adds to the broader investment landscape, offering foreign investors additional avenues for portfolio diversification and long-term growth.

Swiss Legislation for Foreign Investments

Switzerland classifies foreign investments into two categories: direct investments and portfolio investments. Each has a distinct legal framework and implications for control, risk, and return.
  • Direct investments involve acquiring a substantial share (typically 10% or more) in a Swiss company, enabling the investor to participate in decision-making and management. This includes the formation of subsidiaries, branches, or acquisition of voting shares.
  • Portfolio investments, by contrast, are made without the intention of influencing management. These include investments in debt securities, dividend-paying shares without voting rights, and mutual or investment funds. While portfolio investors benefit from returns, they do not exert control over company operations.
Economic Importance of Foreign Investment

Economic Importance of Foreign Investment

Foreign direct investment plays a vital role in Switzerland’s economic development. The country is both a major exporter and a popular destination for international capital. Foreign investment helps strengthen industrial capabilities, supports job creation, and encourages technological innovation.

Over the years, Switzerland has seen a consistent increase in interest from international entrepreneurs and multinational companies. This upward trend highlights the country’s appeal as a secure and profitable market.
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The Role of SECO

The State Secretariat for Economic Affairs (SECO) serves as the primary regulatory authority for foreign investment in Switzerland. SECO is responsible for negotiating and enforcing Switzerland’s bilateral investment treaties (BITs), which provide legal protection for international investors.

SECO also formulates national investment policy, working to ensure non-discriminatory market access for foreign investors and adherence to international legal standards. Through this role, SECO helps maintain investor confidence and supports Switzerland’s global competitiveness.

Double Tax Treaties

Switzerland has established an extensive network of more than 80 double tax treaties (DTTs) with countries around the world. These agreements are designed to prevent the double taxation of income and capital, ensuring that foreign investors are not taxed both in Switzerland and in their home country.

The treaties clarify which country has the right to tax specific types of income such as dividends, interest, royalties, and capital gains. They also include provisions that promote transparency, combat tax evasion, and facilitate the exchange of information between tax authorities.

These DTTs are a cornerstone of Switzerland’s international tax policy and contribute significantly to its status as a favorable investment destination. By reducing fiscal risk and ensuring clarity, they offer legal and financial protections that are highly valued by global investors.

International Agreements for Investment

Switzerland is a signatory to numerous international treaties and frameworks that promote foreign investment and protect investor rights.
  • World Trade Organization (WTO)
    Switzerland’s investment rules are aligned with the General Agreement on Trade in Services (GATS) and the Agreement on Trade-Related Investment Measures (TRIMS), ensuring a fair and open trade environment.
  • OECD Membership
    As a member of the Organization for Economic Co-operation and Development (OECD), Switzerland adheres to the Code of Liberalization of Capital Movements, which prevents discriminatory treatment of investors from other OECD countries.
  • Bilateral Investment Treaties (BITs) and Free Trade Agreements (FTAs)
    Switzerland has signed dozens of BITs and FTAs that protect foreign investors by offering dispute resolution mechanisms, safeguards against expropriation, and most-favored-nation treatment.
These agreements underscore Switzerland’s commitment to maintaining a liberal and secure investment climate, reinforcing its credibility and attractiveness on the global stage.

Benefits for Foreign Businessmen

Foreign entrepreneurs investing in Switzerland benefit from equal treatment under Swiss corporate and tax law, similar to that afforded to local investors. In addition to this regulatory parity, several distinct advantages further enhance Switzerland’s appeal:
  • Freedom of establishment
    Foreigners can freely open and operate businesses across a wide range of industries.
  • Acquisition of Swiss assets
    Foreign investors may purchase shares or stakes in Swiss companies.
  • Real estate ownership
    With a valid residence permit and cantonal authorization, foreign citizens can acquire property in Switzerland.
  • Access to subsidized credit
    Government-backed programs provide partial subsidies on bank loans to encourage investment in various sectors.
These benefits are backed by Switzerland’s well-functioning legal system, political neutrality, and stable economic environment, making it an ideal base for long-term business operations.
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Why Choose Switzerland for Investments

Why Choose Switzerland for Investments

Switzerland offers a blend of strategic location, robust infrastructure, and legal stability that few other countries can match. Its central European position makes it an excellent launchpad for accessing markets across Europe, the Middle East, and Africa.

Although Switzerland is not an EU member, it maintains bilateral agreements that grant it many of the economic advantages of EU participation, such as trade facilitation and freedom of movement for goods and services.

Further reasons to invest in Switzerland include:
  • Political and economic stability
    Known for its neutrality and low corruption index.
  • Strong currency
    The Swiss franc remains one of the most reliable global currencies.
  • Innovation ecosystem
    Switzerland consistently ranks among the world’s most innovative nations, with strong government and private sector R&D support.
  • High quality of life
    A safe, efficient society with top-tier healthcare, education, and infrastructure.
These qualities combine to form one of the most favorable business environments for both startups and large enterprises.

Switzerland is One of the Safest Countries

Safety and security are paramount considerations for foreign investors, and Switzerland excels in both areas. The country's commitment to political neutrality, a low crime rate, and consistent rule of law have created one of the most secure environments in the world.

Switzerland also boasts high purchasing power, a robust legal system, and a reliable banking sector that reinforces confidence among international businesspeople. Investments are well-protected, and both young and experienced entrepreneurs find the Swiss market stable and predictable.

Startups are particularly welcomed, with local authorities offering support in the form of incubators, tax incentives, and simplified registration processes. Whether investors are entering the market for the first time or expanding existing operations, Switzerland provides a solid foundation for business success.

Switzerland’s Unique Features

One of Switzerland’s most significant assets is its global connectivity and competitive trade framework. With more than 40 free trade agreements in place, the country ensures streamlined access to global markets, especially across Europe.

Additionally, Switzerland’s agreements with the EU facilitate the free movement of professionals, enabling businesses to attract highly skilled workers from neighboring countries. The result is a diverse and multilingual labor market, known for its efficiency and innovation.

Switzerland’s business centers, infrastructure, quality of governance, and emphasis on education all contribute to its reputation as a premier destination for global investment. Its ability to combine tradition with technological advancement makes it stand out among developed economies.

Swiss Labor Regulations

Switzerland is renowned for its liberal and balanced labor legislation, which supports both employers and employees. The Swiss labor market stands out for its low level of regulation compared to other European countries, allowing businesses to operate flexibly while ensuring fair treatment for workers.

Employment disputes are often resolved through cooperation between social partners, including trade unions and employer associations. This approach reduces conflict and contributes to Switzerland’s high level of industrial peace.

Switzerland also ranks consistently high in international talent competitiveness. Its flexible employment framework, combined with strong vocational training and educational systems, ensures that companies have access to a highly qualified workforce.

For foreign investors, these conditions reduce the need to relocate employees from abroad, as they can hire skilled local professionals. Moreover, for companies not ready to establish a physical office, virtual office services offer a cost-effective way to maintain a Swiss business presence.
Invest in Real Estate in Switzerland

Invest in Real Estate in Switzerland

Real estate is a consistently attractive sector for investment in Switzerland. Investors can engage in various activities, including:
  • Acquiring residential or commercial property;
  • Launching real estate development projects;
  • Creating or joining real estate investment funds (REITs).
While foreign investors may acquire property, doing so typically requires a valid Swiss residence permit and cantonal approval. Regulations vary by canton, so it’s important to consult local authorities or legal advisors during the acquisition process.

Cities like Zurich, Geneva, and Lausanne offer excellent opportunities for both residential and commercial property investment. These cities feature high demand, stable markets, and superior infrastructure. In addition, real estate investors benefit from Switzerland’s legal certainty, transparent registration system, and general macroeconomic stability.

For those relocating to Switzerland, real estate investment offers not only business value but also access to a high standard of living, including world-class healthcare and social benefits.

Opening a Company in Switzerland

One of the most effective and strategic ways to invest in Switzerland is by opening a local company. The country welcomes both EU and non-EU investors, provided they comply with certain administrative and legal requirements. A solid business plan and a contribution to the Swiss economy or labor market are essential.

Entrepreneurs can choose from various legal forms for incorporation:
  • Sole proprietorship (Einzelfirma);
  • Limited liability company (GmbH/Sàrl);
  • Joint-stock company (AG/SA);
  • Branch of a foreign company.
The incorporation process is transparent and efficient. On average, it takes around four weeks to complete, depending on the canton and company structure. Switzerland also offers a well-developed banking sector, notarial services, and legal assistance, all of which simplify the registration process.

Foreign investors benefit from Switzerland’s attractive corporate tax rates, access to skilled labor, world-class infrastructure, and business-friendly regulatory environment. Furthermore, support services are readily available, from tax advisory to office rental and employee recruitment.

It is highly recommended to work with local incorporation consultants or law firms who are familiar with cantonal regulations and administrative procedures. Their guidance ensures that investors meet all legal obligations and optimize their market entry strategy.

Conclusion

Switzerland remains one of the most attractive and secure countries in the world for foreign investment. From its central European location and stable political environment to its strong legal protections, favorable tax policies, and cutting-edge innovation hubs — Switzerland offers unmatched advantages for entrepreneurs and established companies alike.

Whether you are interested in high-tech, real estate, finance, or services, the country provides a highly supportive ecosystem backed by world-class infrastructure and an educated workforce. With clear regulations, extensive international agreements, and access to both EU and global markets, Switzerland offers foreign investors long-term business potential and peace of mind.

For anyone considering setting up or expanding a business in Europe, Switzerland should be at the top of the list.

Adam Abdellaoui

Off-Counsel
+41 (44) 5152530

FAQ – Investing in Switzerland

The minimum founding capital is CHF 50,000 for a limited liability company (GmbH) and CHF 100,000 for a joint-stock company (AG).