Using Switzerland For Asset Protection In An Increasingly Challenging World

Author:Ms Christine Breitler
Profession:Dixcart
 
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Background

Switzerland is an incredibly attractive jurisdiction for international companies and high net worth individuals, seeking stability (political and economic).

Taking into account the many factors that influence the choice of jurisdiction, the case for Switzerland is a strong one.

Reasons Why Switzerland is a Favoured Location

  1. Political, financial, social and economic stability

    The economy of Switzerland is one of the world's most advanced economies. The service sector has come to play a significant economic role, particularly the financial services sector. The economy of Switzerland ranks first in the world in the 2015 Global Innovation Index and the 2017 Global Competitiveness Report, according to the United Nations.

    The economy of modern Switzerland is recognised as one of the world's most stable. In addition, in terms of the 'human development index' (a statistical composite of life expectancy, education and per capita income), with a rating of 0.944, Switzerland ranked second in the world in 2018.

    Swiss neutrality is one of the main principles of Switzerland's foreign policy which dictates that Switzerland is not to be involved in armed conflicts between other states. This policy is self-imposed, permanent, and designed to ensure security from external events as well as assisting in the promotion of peace.

    The stable political and economic environment of Switzerland makes it a strong jurisdiction from an asset protection perspective with little motivation to over tax companies or individuals.

  2. Favourable tax environment for holding companies

    There are 26 cantons in Switzerland, with French speaking Geneva being one of the most important. The Swiss tax system grants holding companies privileged tax status at the cantonal level with each canton having slightly different tax rates varying from 13.04% to 24.16%.

    If the holding company owns 20% of the share capital of another legal entity, it can also benefit from a corporate tax reduction at the federal level.

    The double tax treaties signed by Switzerland with the European Union and several other jurisdictions, can provide tax exemptions for the dividends received by the subsidiaries of Swiss holding companies. These subsidiaries are entitled to receive a federal tax reduction, the amount of which depends on the ratio of dividend income to total net income.

  3. Banking advantages of setting up a Swiss company

    The global move towards transparency, increase in exchange of...

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