Switzerland's strengths: Opportunities and advantages

Switzerland stands out as a preferred choice for those seeking career development combined with attractive tax advantages. Residents benefit from a thriving economic landscape conducive to professional growth. The country’s companies, recognised leaders in fields ranging from finance to cutting-edge technology, provide a wealth of career possibilities.

In addition, Switzerland is recognised for its highly attractive tax system for individuals. Thanks to competitive tax rates and favourable regulations, residents can optimise their tax situation while enjoying high‑quality public services and well‑developed infrastructure.

Under this system, taxes are calculated according to the taxpayer’s lifestyle and expenses in Switzerland rather than their real income or wealth. For cantonal and federal taxation, the minimum expense considered corresponds to seven times the annual rent or rental value of the property. To benefit from this regime for direct federal tax, individuals must have an annual income of at least CHF 400,000.

This form of taxation is available to foreign nationals who take up residence in Switzerland for the first time, or after an absence of at least ten years, provided they do not exercise gainful employment in the country.

In Geneva and Vaud, the combined total of wealth and income taxes, including cantonal and communal surcharges, may not exceed 60% of net taxable income. For this calculation, however, the net return on wealth must amount to at least 1% of the taxpayer’s net assets. This net return includes income derived from movable and immovable assets, after deducting expenses such as debt interest and banking fees. Interest attributed to taxable business assets is also included, subject to a ceiling corresponding to net self‑employment income.

For married couples living together, the maximum tax burden is calculated based on their combined income and wealth. Only cantonal and communal income and wealth taxes are considered; personal tax, supplementary real estate taxes and other levies are excluded.

When the tax shield applies, the reduction is made specifically on the wealth tax, including any additional cantonal and communal surcharges.

Because each case is different, our specialists are available to guide you toward the most suitable tax‑optimisation opportunities. Do not hesitate to reach out for personalised advice.

Since 1 January 2020, the Federal Act on Tax Reform and AHV Financing (RFFA) has introduced tax measures aligned with international standards while maintaining Switzerland’s appeal for businesses.

Although Switzerland is not part of the European Union, it benefits from a network of 30 free trade agreements with 40 partners, both within and outside the EFTA. This strong international orientation provides companies established in Switzerland with privileged access to international markets.

While salaries in Switzerland are higher than in most neighbouring countries, labour costs remain competitive thanks to relatively low social charges: around 12.5% for employees and 12.5% for employers. Furthermore, inflation is kept low and stable through the prudent monetary policy of the Swiss National Bank (SNB). This economic stability helps preserve purchasing power, reinforcing confidence among consumers and investors alike. Even when external factors generate inflationary pressures, Switzerland manages them effectively, strengthening its attractiveness as both a business hub and a place to live.

Cantons with the lowest tax rates rank as particularly competitive compared to OECD/G20 jurisdictions. The combination of substantial fiscal advantages and Switzerland’s political and economic stability makes the country a preferred choice for international companies seeking a business‑friendly environment.

Starting a business in Switzerland is generally easier than in most European countries. To ensure a smooth and efficient process, we recommend working with local specialists. As a private bank close to you, attentive to your goals and concerns, our experts stand ready to guide you through your establishment in Switzerland. Please do not hesitate to contact us.