Switzerland is the most immigrant-friendly country globally. It has been a dream destination since its excellent living standards, world-class infrastructure, and political neutrality attracted retirees, corporate investors, and affluent individuals. Living in Switzerland has always been considered “expensive.”
Swiss Advantages
In Europe, one can travel without a visa. Privacy and liberty are often confused. Retirees and wealthy families love it. Real estate property investment or purchase is comparatively more straightforward, depending on the Swiss Canton of your choice.
Invest the bare minimum
Before applying for the Swiss residence programme, there is an exception for clients to have at least $1 million in their bank account (corporate or lump sum).
Immigrant Investor Program in Switzerland
A non-EU national can obtain a Swiss residency permit in one of two ways: Swiss Company Formation (For Corporates) or Swiss Lump Sum Taxation (For Retirees). Swiss lump-sum taxation is best for affluent individuals or retirees, but Swiss company formation is best for investors and corporations.
Legal rights and obligations of EU/EFTA citizens
Based on the Agreement on the Free Movement of People, EU/EFTA citizens (except Croatians) can work in Switzerland without a permanent residency permit. They only need to apply for a B permit (suitable for five years) and a business plan. A cross-border work permit is sufficient for cross-border workers.
A business strategy, a valid VAT number, a professional register entry, and registration with the social insurance as a self-employed entrepreneur, among other things, are all required by Swiss law to be stated and confirmed.
Legal rights and obligations for Non – EU/EFTA citizens
To set themselves up as self-employed, non-EU/EFTA citizens must have a valid C Permit or be Swiss citizens.
Non-EU/EFTA citizens who do not meet these criteria must apply with the cantonal authorities. They must demonstrate that their future company will have a “long-term positive effect or influence on the Swiss labour market,” which entails that it “contributes to the regional economy’s industry-specific diversification.
It also preserves or creates several jobs for local staff, makes substantial investments, and generates new orders for the Swiss economy.” Therefore, the business strategy is integral to the evaluation and should be written with extreme care.
Following that procedure, individuals may get granted a short-term work or residence permit (L Permit) or a permanent resident permit (B Permit), subject to annual quotas. Last but not least, foreign entrepreneurs must be qualified to run the planned firm and meet the Swiss labor market standards.
Creating a Swiss Company
Any foreign national can establish a firm in Switzerland (in a Swiss canton) to employ local Swiss nationals and contribute to the country’s economic development. The company’s owner is qualified for a residence visa in Switzerland. GmBH / SARL (like LLC) and AG are the most common business structures (for corporations). Because of its cheap corporate taxes, the Canton of Zug is an excellent place to start a business.
Many entrepreneurs and multinational organisations have benefited from establishing a base of operations in Switzerland.
With business insurance in Switzerland, Commercial liability insurance safeguards you against the financial ramifications of valid claims, but Switzerland’s insurance costs are very high.
Swiss citizens, on average, spend about 10% of their income on health insurance; many insurance companies claim to offer cheap Switzerland health insurance. One can visit the websites of these companies and perform Health insurance price comparisons. An online Health insurance comparison tool that is very popular is PrimApp. The tool is available in English, French, and Italian.
Taxation in Switzerland in a Single Invoice
It is possible to get a residence permit in Switzerland by paying an ‘annual lump sum taxation cost – a minimum of CHF 150’ 000 (about USD 170 ‘000) or more, depending on the Swiss canton (excluding Zurich). Depending on the canton, this annual tax amount can be up to CHF 1 million or more, and it applies regardless of family income or assets around the world. The Swiss resident permit is available to people in various situations, including retirees, wealthy individuals, and business employees establishing a Swiss company. There is no need to report global income or assets if you pay this charge.
Appenzeller, Nidwalden, Graubunden, Schwyz, Geneva, Fribourg, Jura, Bern, St.Gallen, Vaud, Valais, Lucerne, Solothurn, Obwalden, Thurgau, Ticino, Zug are the most popular cantons in Switzerland for this programme. A residence permit in Switzerland typically takes 3-4 months to obtain.
Foreign citizens possessing a Swiss residence permit are permitted to purchase real estate in Switzerland, such as an apartment or a house, without prior approval.
Worldwide income and assets to Swiss authorities are not needed to declare if you pay this lump sum taxation levy to the Swiss canton. This is Switzerland’s essential edge over other high-tax countries.
Conclusion
Switzerland is an appealing country for foreigners to start a successful business because of its legal, political, and economic stability. It’s a strategic location of the EU, and its robust economy bolsters this position.
Permit C holders will find it quite simple and accessible to start a business in Switzerland (i.e., Swiss permanent residents) in terms of the legislative structure. Foreigners, on the other hand, face more stringent regulations.
