Lawsupport Blog

Swiss Taxes

Unlocking the Benefits of Low Swiss Taxes: discover the advantages of Switzerland's moderate tax rates compared to other European countries.
Switzerland's taxes are moderate compared to other European countries. This is why Swiss companies for foreign residents are a possible source of income. The Swiss government does not limit either the size or source of foreign equities, once they are incorporated into the economy. Furthermore, Swiss political and economic status is seen as independent on many issues. Switzerland is not an EU Member State; this is advantageous with regard to the Swiss policy towards investments and businessmen who choose to set up their own company in the country. One of the peculiarities of the Swiss market is its low tax rates for corporate bodies, partnerships and sole traders. Tax exemptions exist due to international treaties signed with other countries.

Swiss taxes — low?

Swiss taxes are rated as moderate as compared to EU Member States. Despite its neutrality, Switzerland has established close relations with many wealthy states, which is why the cash flow in the area is, to a large extent, high. The government seeks ways to promote ties with European countries which results in the adoption of numerous trade and tax agreements. The attractiveness of doing business in Switzerland is also enhanced by peculiarities of cantonal laws. Cantonal policies are regarded as separate from federal ones. This peculiarity is enforced by the constitution of the country. According to it, cantons are regarded as independent tax authorities. Tax rates differ from canton to canton, which also originates from their independent policy-making.

Are Swiss taxes flexible?

The structure of the country leaves much room for competition among different regions. Some of them charge lower tax rates, others offer more favorable business environments. But the cantonal level of taxation system is added to by two additional levels:

  • Federal
  • Municipal
Each taxation level may change its rates when there appears to be public pressure or demand within the community. If the need arises to change the rate of a direct or withholding tax of a certain canton, a referendum may be implemented. Its results change the rates directly. This approach is democratic and reflects the right of Swiss residents to take part in all aspects of the country's political and economic life .

Swiss taxes for foreigners

Banking services in Switzerland have largely contributed to tax exemptions which are promoted on each taxation level. Providing private services to foreign residents, Swiss banks pride themselves on being reliable and secure. This originates from the adoption of privacy laws, which are unique to Switzerland; this is how the stability of the Swiss economic system is enabled and even guaranteed. Switzerland still remains attractive for wealthy foreign residents who invest their assets in the country's economy. Investments into this jurisdiction are largely caused by:

  • Asset security
  • Banking privacy laws
  • Stable economic development of the country
  • Close ties with EU Member States
  • Reasonable tax rates
The above-mentioned points are coupled with flexible tax planning programs for individuals and corporate bodies. Various services offer standard and alternative ways to improve business development schemes. Although Swiss taxes for foreigners remain attractive, it is sometimes difficult to investigate into their benefits in different cantons. To receive the necessary details on the matter, feel free to consult Goldblum and Partners, who can provide the required information on the Swiss taxation system. We are also ready to offer consultation on any aspect of company incorporation process, including tax exemptions and other bonuses.