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Switzerland is a dream destination for many investors. It is one of the most immigrant-friendly countries in Europe and the most sought after by business people because of its high standards of living, political neutrality, world-class infrastructure, and beautiful landscape. It has been an ideal destination for retired people, business investors and wealthy individuals.
You may know the old saying that the holy trinity is a British Passport, a Swiss Bank Account and an Australian lifestyle. Today that is changing, as Australia now offers some exceptional residency by investment opportunities. Well worth exploring further if you are not yet wholly committed to Switzerland.
At Sterling Migration, we are experts in the niche area of immigration by investment for Switzerland. Our team strive to provide the most suitable investment opportunities to meet our client’s needs to ensure they can secure residency under the current Swiss immigration laws supporting Investment from Foreign investors.
The Swiss Company Formation is ideal for obtaining permanent Swiss residency for investors, business people, and corporates. In contrast, the Swiss Lump Sum Taxation is most apt for wealthy individuals or retirees.
A foreign national is welcome in Switzerland to form a company (in a Swiss canton) which has the scope of creating jobs and economic opportunities for the local Swiss citizens, thereby contributing to Switzerland’s economic development. The company’s owner is eligible to get a residence permit in Switzerland. The most popular company forms in Switzerland are GmBH/SARL (like LLC) and AG (for corporations). The canton of Zug is the most favourable one to form a company in because of its low corporate taxation.
It is possible to obtain a residence permit in Switzerland by paying an “annual lump sum taxation” fee, which amounts to a minimum of CHF 150,000 (approximately USD 170,000) or more, depending on the chosen Swiss canton (except Zurich). Depending on the chosen canton, this fee amount may go up to CHF 1 million or more. Swiss residency is granted to people under various categories – retirement, wealthy individuals, or business employee. Anyone who can pay the minimum fee is not required to declare worldwide income and assets.
The most sought out Swiss cantons under this programme are Bern, Appenzler, Fribourg, Jura, Geneva, Graubunden, Schwyz, Nidwalden, St.Gallen, Valais, Vaud, Lucerne, Ticino, Slothurn, Obwalden, Thurgau, and Zug.
The usual time to get a residence permit in Switzerland is 3-4 months approximately.
Eligibility:
To be eligible for a Swiss residence permit, the following criteria must be met:
To be eligible to apply for residence under this programme, one must be above 18 years of age. Those seeking a residence permit under the retirement scheme must be above 55 years of age and provide proof of adequate financial means.
Several identification documents must be submitted along with the application, and the applicant must also show proof of a clean criminal record and good moral character.
A Swiss residence permit allows one to buy real estate property, such as an apartment home, without securing any prior approvals from the authorities in Switzerland.
Also, by paying a lump sum taxation fee to the Swiss canton, an investor immigrant is not required to declare worldwide income and assets to the Swiss authorities. This is one of the main advantages of residency in Switzerland compared to other high-tax countries.
The amount of lump-sum taxation an investor needs to pay is calculated based on five times the annual rental income compared to annual living expenses, whichever is higher. For instance, if an investor rents an apartment for CHF 10,000 a month and his total living expenses are CHF 200,000 annually, then his annual rent is CHF 120,000, multiplied by five, which becomes CHF 600,000. Since CHF 600,000 is more than the annual living expenses of the investor, the payable tax will be calculated at 30% of CHF 600,000 annually.
Obtaining Swiss Citizenship is, however, not easy. After 12-15 years of residency, a person can apply for Swiss Citizenship, but the decision to grant Citizenship is totally at the discretion of the Swiss government.
Switzerland is known for its beauty, stability, and favourable banking & tax system. The property market is trusted and has been known for its stable growth over the last 40 years.
Sterling Migration offers clients a full range of services related to acquiring a property in Switzerland, offering strict confidentiality during each property acquisition.
Switzerland has restricted the acquisition of the real estate by foreigners for decades. In principle, all foreigners who wish to acquire Swiss residential real estate must obtain approval before purchasing, which will otherwise be invalid. Such approval is relatively difficult to obtain. These restrictions also mean that tax and estate planning options for foreigners wishing to acquire holiday homes in Switzerland are minimal.
For foreigners with Swiss residence permits, it is possible to acquire real estate for personal use. Also, foreigners’ acquisition and holding of purely commercial real estate are no longer restricted in Switzerland.
All foreigners wishing to acquire Swiss residential real estate must obtain approval before purchasing. A foreigner may be authorised to buy a holiday home in a place designated by the respective cantonal authorities as a holiday resort. Every authorisation must be deducted from the federal government’s annual quota assigned to the cantons for holiday homes and hotel condominium units. The cantons and communities can apply their restrictions even more stringent. Physical persons may only acquire holiday homes and hotel condominium units under their name but not via a company.
Since 1997, foreigners holding a Swiss residence permit can purchase a reasonably sized house or apartment for personal use without further need to seek prior approval.
Likewise, foreign-controlled Swiss companies which purchase real estate for use as their own offices or production facilities may do so without restrictions. Foreigners wishing to acquire Swiss real estate and subsequently spend considerable time living in Switzerland may find that moving their primary place of residence to Switzerland and obtaining a Swiss residence permit is an exciting option to consider.
There are no restrictions regarding acquiring purely commercial real estate by a foreigner or foreign entity. As a result, there are interesting tax planning options for foreigners and foreign entities wishing to invest in Swiss commercial real estate. Please get in touch with us for further information and advice.
Switzerland is undoubtedly one of the most attractive countries in the world. An ideal combination of political and economic stability, a clean and safe environment and relatively low tax rates make it the ultimate place of residence. The possibility of lump-sum taxation, meagre inheritance taxes, and the high degree of privacy and personal security enjoyed by its inhabitants make Switzerland the home of choice for many celebrities and wealthy individuals.
Many of the world’s foremost companies have chosen Switzerland as the location for their global, European or regional headquarters, their international finance companies or research and development facilities. Some examples are Amgen (European headquarters) in Lucerne, Kühne & Nagel (international holding) in Schwyz, Philip Morris (European headquarters) in Vaud, Compaq Computers (European headquarters) in Kloten/Zurich, or the IBM research laboratory in Rueschlikon/Zurich.
Switzerland is business-friendly, with 26 cantons offering companies a wide range of opportunities.
The Swiss tax system is very much in line with the country’s reputation as a centre for international trade and finance. Many tax privileges have been introduced to entice foreign investment in Switzerland, while there are few restrictions on Swiss investment abroad. Switzerland also has an extensive network of treaties to avoid double taxation. As a result of recent corporate tax reforms, doing business in Switzerland has become even more attractive as the tax system has been further improved. Also, as a result of these reforms, the Swiss holding company gained again and ranks today among the best holding jurisdictions in the world.
Switzerland is often perceived as costly and accessible only to wealthy individuals and large companies. However, the overall cost of living and doing business in Switzerland compares very favourably with Germany, France, the Netherlands and the USA. What counts is what you get: State-of-the-art transport, communications, energy supplies and waste disposal systems cost no more in Switzerland than the price paid elsewhere for traffic congestion and environmental degradation.
When establishing a new business or subsidiary in Switzerland, you may opt for a branch office or a separate legal entity in either a limited liability company or a stock corporation.
Banking and insurance are the foundation of Switzerland’s financial system, arguably the most solid in the world. Swiss banks and insurance companies are incredibly safe as the entire Swiss financial industry is tightly regulated. Swiss banks and insurance companies are unique by providing sophisticated services to businesses as well as to discerning investors, by offering financial privacy, and through their solid reputation, safety and worldwide presence.
Switzerland is a preferred jurisdiction for company registration because it offers reliability, respectability and privacy, together with limited liability and tax privileges. , which is under The Swiss Constitution guarantees economic freedom and allows anyone, including foreign nationals, to form or hold an interest in a Swiss company. The form generally used by foreign investors is the Stock Corporation (“Societe Anonyme” or “Aktiengesellschaft”), particularly certain specialised conditions that offer tax-privileged treatment:
A Swiss Holding Company is an entity whose primary purpose is to hold and manage financial investments in affiliated companies. Under Swiss tax law, a Holding Company should not conduct any other business activity in Switzerland. Providing certain conditions are met, income or gains arising from qualifying participations are effectively exempt from Swiss federal and cantonal taxes. Due to Switzerland’s extensive Double Tax Treaty network, a Swiss Holding Company is an ideal vehicle for consolidating worldwide investments and participation.
Swiss Mixed Companies are entities whose business activity is primarily (at least 80 % of sales and purchases) related to business outside Switzerland. Mixed Companies can result in savings in corporate income tax levied on income and capital gains, and they are widely used for international trading and tax planning. The federal tax of 8.5% will be applied to income, but cantonal tax will only apply to Swiss-bound income to give an overall rate that will generally not exceed 10%.
A Swiss Domiciliary Company is an entity that carries on purely administrative functions in Switzerland and has practically no Swiss revenue (under 5%). Auxiliary companies outside Switzerland may conduct any activities. The auxiliary companies’ tax regime is only available at the cantonal level. It varies from canton to canton, but generally, income from qualifying participations is tax-exempt, and only a portion of the income from abroad is subject to Swiss tax. Revenues and expenses of Domiciliary Companies are apportioned among various categories, each subject to different taxation rules.
Sovereign provides ready-made or customised incorporation of all types of Swiss companies. To enjoy the benefits under certain Double Tax Treaties (e.g. no or much-reduced withholding tax on dividends with Hong Kong and Singapore), it is often prudent to use such a foreign company as a shareholder. Sovereign can also provide such International Companies on a global basis.
Once incorporated, we provide a domiciliary service, which includes company secretarial, registered office and nominee shareholder services. All Swiss companies must register with the Federal Commercial Registry Office, which maintains a freely accessible database (www.zefix.ch) with information on trade names, registration numbers and legal domiciles. To avoid being publicly identified as a shareholder, the Sovereign can register a trusted company with a non-registered trust agreement with the beneficial owner.
Complete management services from our licensed corporate directors are also available and highly advisable in most cases. Re-mailing services are available at a modest cost for all companies established by Sovereign.
In addition to providing incorporation, domiciliary and management (directorship) services, a range of ancillary services at competitive prices is available on request. These services include but are not limited to the provision of dedicated telephone lines; office and personal assistance; designated staff members (temporary or permanent availability); assistance with office relocation, introduction to real estate agents, government agencies and other third parties.
There is no substantial Swiss law on trusts and, therefore, no provision for a Swiss domestic trust. However, a trust can be established under foreign law, and since 2007 when Switzerland ratified the Hague Convention, trusts are recognised as a legal structure. In 2007, the Swiss Tax Conference issued circular No. 30 on the taxation of trusts for cantonal/communal income tax purposes. The Federal Tax Authorities issued a similar circular concerning federal income tax. Generally, the trust itself is never subject to tax due to a lack of legal personality.
Furthermore, trust assets and income cannot be attributed to the trustee or the protector.
Location: Switzerland is in Western Europe sharing borders with Germany, France, Italy, Austria and Liechtenstein.
Capital: Although there is no formal capital city of Switzerland, Bern is considered to be the capital.
Population: 8 million (approx)
Area: 41,285 km sq
Currency: Swiss Franc
Official Languages: German, French, Italian and Romansh
The Swiss flag can be both shaped like an oblong (as above) or square-shaped. It has been used as the national flag, in its present form, since 1889.
Complete our online enquiry form, and one of our senior managers will arrange a confidential consultation to discuss your requirements and potential options.
At Sterling Migration, our team are ready to manage even the most complex of cases. Our thesis, however, is to keep things as simple as possible. We believe our clients must be comfortable and remain in control of their international plans throughout the process. We endeavour to protect our client’s best interests while delivering outstanding results.
