Switzerland is a peaceful, prosperous, and modern market economy with low unemployment, a highly skilled labor force, and a per capita GDP among the highest in the world. Switzerland’s economy benefits from a highly developed service sector, led by financial services, and a manufacturing industry that specializes in high-technology, knowledge-based production.

The economy has weakened thus far in 2015, but growth is projected to rise gradually into 2016 as the recent large exchange rate appreciation is absorbed. 

Economic ranking of Switzerland

The Swiss rank 26th in the bank’s Doing Business 2016 study of 189 countries, putting it well behind other countries when it comes to a regulatory environment conducive to the starting and operation of a local firm.

In Switzerland there are two basic types of business formation – partnerships and capital companies. Both of these basic types offer various legal entities to choose from according to the needs of the business.

The most common types of company are the public limited company, Ltd (AG), the limited liability company, LLC (GmbH), the general partnership, and the sole enterprise. This summary provides you with an overview of these four company types.

This site from the World Bank provides a detailed summary of the bureaucratic and legal hurdles faced by entrepreneurs wishing to incorporate and register a new firm in Switzerland.

Company registration in Switzerland is preceded by a meeting of the shareholders in front of a public notary. After that, an application form is completed and submitted to the office of the Commercial Register in the district of its domicile. 

A VAT rate of 8% applies to most goods and services. A reduced rate of 2.5% applies to certain everyday consumer goods such as foodstuffs, non-alcoholic beverages, books, newspapers, magazines, medicines, but also to tickets for sports and cultural events.

All tax-resident individuals are taxed on their worldwide income and wealth. Non tax-resident individuals are only taxed on Swiss sources of income and wealth.

The Sales Tax Rate in Switzerland stands at 8 percent. Sales Tax Rate in Switzerland averaged 7.80 percent from 2006 until 2015, reaching an all time high of 8 percent in 2011 and a record low of 7.60 percent in 2007. Sales Tax Rate in Switzerland is reported by the Swiss Federal Tax Administration.

Taxes and other duties are levied on three levels: the Confederation, the 26 cantons and the some 3,000 municipalities, reflecting the federalist State structure of the Swiss Confederation. Each canton has its own tax legislation and taxes as it sees fit the income and assets of individuals, the profits and capital of legal entities, inheritances and donations, property gains, etc.

The Corporate Tax Rate in Switzerland stands at 17.92 percent. Corporate Tax Rate in Switzerland averaged 18.90 percent from 2006 until 2015, reaching an all time high of 21.23 percent in 2006 and a record low of 17.92 percent in 2014. Corporate Tax Rate in Switzerland is reported by the Swiss Federal Tax Administration.

Resident companies are subject to Swiss corporate income tax (CIT) on their taxable profits generated in Switzerland. CIT is levied at the federal, cantonal, and communal level. 

The Personal Income Tax Rate in Switzerland stands at 40 percent. Personal Income Tax Rate in Switzerland averaged 40.15 percent from 2004 until 2014, reaching an all time high of 40.40 percent in 2005 and a record low of 40 percent in 2008. Personal Income Tax Rate in Switzerland is reported by the Swiss Federal Tax Administration.

Information from the US Department of State – US Embassy in Bern. See Entry, Exit and & Visa Requirements

This site provides a link to visa application forms

Switzerland by train, bus and boat. Enjoy stress-free travel by road, rail and waterway throughout Switzerland – with the Swiss Travel System.

Being in the centre of Europe, Switzerland has a dense network of roads and railways. The Swiss public transport network has a total length of 24,500 kilometres and comprises more than 26,000 stations and stops.

Switzerland has one of the highest numbers of phone lines per capita, nearly every household has one.

Switzerland enjoys one of the highest broadband penetration rates in the OECD and a competitive mobile market served by a triopoly of international players.

Switzerland follows the Continental European tradition. This is a different legal basis for employment relationships of government personnel and those of private employees.

All employees in Switzerland must pay unemployment insurance. Half of this is paid by the employer and the other half by the employee.

All employees in Switzerland who have not yet reached the legal retirement age must be covered by unemployment insurance. Half of the contribution is paid by the employee and the other half by the employer.

This website contains basic information about employment law in Switzerland.

See “Labour law in the Constitution”

This site includes indices on living costs including rent, utilities transportation, clothing, and food

Switzerland is almost as famous for its high cost of living as it is for its ski slopes. Three Swiss cities featured in the 2014 Mercer Cost of Living Survey’s top ten –Geneva, Zurich and Bern – and rural areas aren’t necessarily that much cheaper.

The dos and don’ts of business etiquette in Switzerland

This site offers some introductory points on areas such as business culture and etiquette.

Since Switzerland has no natural resources, education and knowledge have become very important resources. Therefore Switzerland claims to have one of the world’s best education systems.

A complete listing of holidays in Switzerland for 2015. There is one national holiday (Swiss National Day – August 1) but several local holidays that are widely observed

The 26 cantons that make up Switzerland set their public holidays independently — with the exception of August 1,]which is the only federal holiday.

Demographic profile for 2014

Demographic facts and data

Switzerland is located within a temperate climatic zone. In the west and northwest the influence of the temperate Atlantic climate is felt more strongly, in the east the influence of the continental climate. At a latitude of 47 North, the climate is moderate and generally agreeable.

The climate of Switzerland is influenced by the Atlantic Ocean. The westerly winds transport the sea air to Switzerland and are responsible for the precipitation levels in the country. In addition, the cold and dry northern wind can make temperatures drop very quickly, but also contributes to the often clear skies. 

Switzerland remains largely free of terrorist incidents; however, like other countries in the Schengen area, Switzerland’s open borders with its Western European neighbors allow for the possibility of terrorist groups entering/exiting the country anonymously. You should remain vigilant with regard to your personal security.

Education in Switzerland is a largely decentralised system. Each Swiss canton has its own independent education department. The Swiss Conference of Cantonal Education is a united body of Swiss cantons aimed at standardising the system between all the schools in Switzerland.

This site provides key information on Switzerland’s participation in the WTO. Switzerland has been a WTO member since 1 July 1995 and  a member of GATT since 1 August 1966.

List of Free Trade Agreements of Switzerland

Switzerland’s economic and trade relations with the EU are mainly governed through a series of bilateral agreements where Switzerland has agreed to take on certain aspects of EU legislation in exchange for accessing the EU’ssingle market.

A guide to trade regulations, customs and standards in Switzerland

Switzerland Customs regulations and procedures for importing and exporting goods at Swiss border. 

A guide to hotels, apartments, hostels and camp sites in Switzerland

Information on hotels, apartments, B&Bs, private homes ansd hostels

A complete guide to travel in Switzerland

Look past the silk-smooth chocolate, cuckoo clocks and yodelling – contemporary Switzerland, land of four languages, is all about epic journeys and sublime experiences.