Why Invest in Switzerland?
Why Invest in Switzerland? Switzerland has an age-old reputation as a safe haven country and its political neutrality has firmly placed it in a unique position. Its culture of industriousness and discretion as well as a strong and stable currency mean it offers a high degree of security for investments.
With considerable political insecurity spanning many continents, investing in Switzerland and gaining Swiss residency is an attractive proposition.
Switzerland was ranked as the 5th most competitive economy in 2019. As a country, it excels in the performance of its “human capital” according to the World Economic Forum (2019).
In Switzerland, less emphasis is placed on aiming for university places than many other countries, and students are channeled into vocational jobs and apprenticeships. As many as 70% of students participate in the vocational education programme in which 30% of Swiss companies are involved. Many credit this support for the vocational programme from Swiss employers as the main contributor to the strength of the Swiss economy. By doing this, Switzerland retains a low unemployment rate (2.3% October 2019) with a large number of young adults feeding into the skilled workforce of professional talent. This workforce produces high quality goods and services, thus enabling Switzerland to maintain its position as one of the most competitive economies in the world.
Switzerland’s GDP rose by 0.4% in the 3rd quarter of 2019, and by 1.1% annualised, according to the *Swiss Secretariat for Economic Affairs (SECO). GDP is expected to grow by 0.9% across the full year, rising to a 1.7% growth projection in 2020. Switzerland has trade agreements with 40 partners outside the EU including China, a relatively new addition in 2014. Exports are a major contributor to GDP. Switzerland’s main trading partners are the EU, USA, China and Hong Kong.
Because Switzerland enjoys both economic and political stability it provides a high degree of security for investing in Switzerland. This is mainly due to: currency conditions remaining relatively stable; overseas business competitiveness ranking highly and a strong and highly skilled labour force of over 5 million. 80% of people in Switzerland aged 16-64 have a paid job*. Switzerland also offers investors a relatively low taxation regime.
*Sources: Swiss Secretariat for Economic Affairs (SECO) & OECD Better Life Index
Swiss residency is much sought after. A Swiss permanent residence permit, granted after a period of around 10 years (settlement permit C) allows you to reside in Switzerland under the same conditions as a Swiss national. There are strict rules about how many months a year you must stay in Switzerland which vary from canton to canton.
Investing in Switzerland can be a pathway to Swiss residency. If you invest in a business for sale in Switzerland some cantons will offer their support in any application for Swiss residency, if the investment is considered of strategic importance to the canton. Again, this varies between cantons and is subject to strict assessment criteria but it is possible. Contact us to find out about such investment schemes.
How we can help you Invest in Switzerland
Alpine Property Search is a leader in the highly specialised field of hotels for sale in Switzerland and advises on Swiss investment opportunities.
We can offer a variety of investment projects including Swiss education, commercial real estate and private equity deals.
None of these businesses are available on the open market.