Switzerland is situated to continue being an attractive location for both multinational corporations and investors, especially as a place to establish a holding company. The country continues to manage its economy in an outstanding manner, which separates it from other locations that attract offshore interest. You’ll find it an important location for those in the financial services industry as well as banking, insurance, science, medicine, and automation technology.
Key factors making Switzerland attractive are low unemployment levels and continued growth in gross domestic product. The country has a strong free trade network, a good record for investment protection, and an attractive tax structure. If you’ve considered establishing Swiss holding companies, your objective should be to hold and manage activity in other companies. This also means that you will not conduct other business in Switzerland.
When you begin planning for this type of company structure, you’d be wise to work with individuals who have plenty of experience in this field and also offer accurate advice based on local knowledge. For example, you might consider Canton Zug for your business location because of its low tax regime and business-friendly environment. This location is home to about 25% of all holding company activity in the country.
Some of the areas that your advisor will be able to assist with are rules governing a controlled foreign company, details on deductibility of capital losses, and the proper way to treat actual costs when operating in this location. You will also have expert guidance in such areas as tax consolidation, transfer pricing, and taxes on net wealth. You’ll also learn about the way that Swiss law treats interest on various loan programs.
In addition, you’ll also have experienced professionals guiding you in understanding required levels of participation in other companies, such as the requirement to have at least one participation equal to 10%. The importance of having knowledgeable guidance cannot be understated. If these conditions are met, the holding company could be exempt from Canton tax and would have a reduced capital tax rate. As with any business operation, there are exceptions, but having a leading provider of business guidance in Switzerland will make it more likely that you’ll get all the benefits that you’re entitled to.
Switzerland has developed a well-deserved reputation for its scenic beauty and healthy economy, making it a popular destination for tourists and for businesses. One of the key factors in its attractiveness for foreign companies is the tax structure for both corporations and individuals. Of course, it doesn’t hurt to have the ideal location in the heart of Europe.
It’s a world-class financial centre that lends international stature to companies established there. To make sure that you take all the correct steps and put all the essential pieces in place, you’re encouraged to work with the experts.