Switzerland claimed international recognition, independence and neutrality, which was granted in 1815 by the Congress of Vienna. Switzerland has maintained its policy of neutrality ever since.

Switzerland, situated in the heart of Europe, is regarded as a first class destination for those wanting private banking services and has an excellent reputation as a financial services centre. It is also the popular as a hub for many international organisations, with good reason. As a member of the Organisation for Economic Co-operation and Development (“OECD”) and with a favourable tax regime it is becoming an increasingly popular location for asset structuring.

 

Political and Historical Background

Status: Switzerland is a confederation made up of 23 cantons (3 of which are divided into half-cantons), all of which have retained a high degree of autonomy.

In 1960 Switzerland was a founding member of both the OECD and the European Free Trade Association (“EFTA”). In 1963, Switzerland joined the Council of Europe and in 1975 the Organisation for Security and Cooperation in Europe (“OSCE”). Switzerland is a member of the Word Bank and has been a member of the International Monetary Fund (“IMF”) and World Trade Organisation (“WTO”) since 1992 and 1995 respectively.

In 2002 Switzerland became a member of the UN, but is not a member of NATO. Switzerland also declined membership, by virtue of referenda in 1992 and 2001, to both the European Economic Area or the European Union.

Parliament: Switzerland is a direct democracy in which people elect governmental representatives and also decide important issues by referendum.

The Swiss people are also called upon to vote on cantonal and communal matters. The powers of the cantonal and municipal governments are also divided between executive and legislative powers

 

Leading Financial Centre

Corporate Tax: This depends on the canton for the cantonal tax. There is a Federal tax of 8.5%. This is not applicable for non-resident.

It is possible to get advance rulings from tax authorities to offer certainty over the tax position.

Indirect Taxation: The principal indirect tax is TVA (Vat equivalent) and is charged at 7.6%.

Personal Income Tax: This varies from canton to canton for residents. It is possible for high net worth individuals wishing to reside is Switzerland, but who have not worked in Switzerland, to enter the “lump-sum taxation” regime.

Double Tax Treaties: Switzerland benefits from close relations with the EU, although is not a member, and has some 70 DTAs in place.

 

Other Swiss Statistics

Nationality: Swiss

Population: 7,250,000 (canton of Geneva of which has some 433,000 residents)

Location: East of France, North of Italy and South of Germany

Land Area: 15,492 sq. miles

Official languages: German (Central and North Eastern Switzerland), French (western Switzerland), Italian (Southern Switzerland) and Rhaeto-Romanic (South Eastern Switzerland). In Western Switzerland English is widely spoken, especially in business, although is not an official language.

Currency: Swiss Franc (CHF)

Time Zone: GMT +1

Capital: Berne

National flag: Red Flag with a white cross in the centre.