Switzerland, home to numerous banks and institutions, has been Europe’s safe haven for the past several decades. Apart from beautiful mountains, clean rivers, and excellent chocolate, Switzerland can boast 5th most skilled workforce in the world, and an extremely stable and business-friendly economy. Despite its small size and only 8 million inhabitants, it is often called the European Silicon Valley. It is the beating heart of European technology scene, and for all the good reasons: it encourages innovation with regulatory and fiscal benefits for companies, which advocate for technological progress. What are the main reasons to relocate your business to Switzerland? Reduced taxes if your business promotes Research and Innovation, low ordinary income tax and the effective income tax rates, proximity to important research institutions, and abundance of exceptional talent at your fingertips.
1. Switzerland favours the bold (technology)
15, out of 26, Swiss cantons are set to introduce a special 50% tax deduction for companies contributing to Research and Development. 4 other cantons opt for lower, yet still attractive, tax deductions ranging between 20% - 40%. If your business conducts scientific research or actively seeks science-based innovation by creating new products and services, you might fit the description and qualify for the tax deduction. The introduction of the mandatory patent box gives the possibility of obtaining between 10% to 90% income tax exemption from all patent-related income, depending on where you live. The exemption applies at a cantonal level and is enforced in every Swiss canton.
2. Reducing taxes to multiply opportunities
While taxes have been rising everywhere, Swiss cantons decided to lower them in 2020. In consequence, most of the cantons have corporate income tax rate at 12%-15% to remain business-friendly regardless of the global financial climate.
3. Research centres chasing innovation
ETH, Zurich-based technology university, has a long history of innovation and remains one of the major sites of IT development. Its surrounding area is filled with research centres of the most prominent international companies, such as Google, Microsoft, HP, Disney and IBM.
Such a high density of research institutes in the region encourages universities to offer apprehensive, yet well-tailored to the market needs, technology courses. There are very few places, where you can easily find more highly skilled IT professionals. Switzerland is truly the European valley of innovation, which is why it attracts young talent from all around the world.
As the birthplace of The World Wide Web, Switzerland remains a paradise for businesses, which want to dive into the future and push the limits of what’s possible. Stable enough to offer peaceful growth, it leaves room for innovation, viewing it as a chance for a bright future. In Switzerland, your business will never a public enemy, but a bridge to a better tomorrow.
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