Despite market disruption since 2020, Switzerland continues to uphold its status as one of the most attractive destinations for foreign companies seeking a European foothold. The Financial Times’s FDI 2024 report highlights Zurich as one of the top ten “regions and cities of the future” amidst mid-sized regions, with particular emphasis on its economic potential and business friendliness.
Against a backdrop of general European decline in foreign direct investment (FDI) in 2023, Switzerland has held fast to its strengths and solidified its position as a jurisdiction of choice, with several major corporate moves to underscore its ongoing appeal.
In this article, we’ll delve into the latest facts and figures around burgeoning activity in Switzerland and explore why Switzerland remains such an appealing destination for foreign companies.
Switzerland’s recent settlement figures
In 2023, 206 foreign companies established operations in Switzerland. In keeping with recent trends, most are from the information and communications technology (ICT) and life sciences sectors.
These new settlements demonstrate continued international confidence in Switzerland’s business environment—and this confidence is well-placed. In their first year of operation, these companies created 640 new jobs, with plans to generate over 2,500 additional jobs over the coming three years.
Approximately 40% of the companies that settled in Switzerland during 2023 originated in the United States, Germany, and France, reflecting its intercontinental appeal.
Company formations also on the rise
Switzerland’s appeal extends beyond attracting existing companies; it’s also a fertile ground for new businesses. In 2023, a grand total of 51,637 new start-ups were registered (an average of 141 new companies daily). These figures represent a 3.2% increase over 2022, showing a continued upward trend in Swiss-based company formations.
Among the various company structures, the limited liability company (LLC) remained the most popular choice in 2023, while sole proprietorships saw a marked increase of nearly 10%. Leading industries for new company formations include skilled crafts and trades, consulting, real estate, and retail.
Why Switzerland attracts foreign companies
- Business-friendly environment: Switzerland is renowned for its political stability, efficient legal system, and strong intellectual property protections. Combined, these factors create a fertile environment for businesses to operate and grow
- Corporate tax structure: Switzerland has long offered one of the most competitive corporate tax rates in Europe. Despite recent reforms, including the introduction of the global minimum tax, a range of subsidies and specialised tax credits (such as Qualified Refundable Tax Credits, or QRTCs) have kept the jurisdiction competitive
- Regulatory stability: The Swiss regulatory landscape is famously transparent and predictable, which is critical for businesses planning long-term commitments. The 2024 regulatory agenda explicitly emphasises Switzerland’s ongoing commitment to maintaining a business-friendly regulatory framework
- Central location: Situated at the heart of Europe, Switzerland’s central location offers excellent connectivity to major European markets. World-class infrastructure, including robust transportation and communication networks, further enhances its appeal
- Skilled workforce: The Swiss workforce is highly educated and multilingual, making it easy for international businesses to source top talent
Conclusion
Switzerland’s unique combination of stability, favourable tax regime, robust regulatory framework, and highly skilled labour force make it an ideal jurisdiction for firms looking to establish or expand their European presence.
If your business is considering a move, contact our team to take full advantage of Switzerland’s corporate settlement benefits.
About the author
Inga Nitsche is the Head of Corporate Service Team and Funds at IQ-EQ Switzerland. She has more than a decade of experience in the finance sector, with a strong focus in asset management tax. Inga holds a Master in International Taxation from the University of Mannheim and a Bachelor in Business Administration and Economics from Goethe University Frankfurt.
