Cheese, chocolate and skiing is three Things that may come to mind when thinking about Switzerland. Although many can experience it only on vacation, there are others who enjoy it all year round. These are people who work and live in Switzerland, benefitting from high salaries, low taxes, excellent quality of life and an efficient banking system. Consider these qualities further.
Quality of life
Geographically, Switzerland is at the heart of the European Union (EU), without membership. However, Switzerland is a signatory to all the major trade and working treaties of the EU; this means that it is much easier for an EU citizen to enter Switzerland than it is for anyone else.
Switzerland is also a signatory to the most important treaty on the avoidance of double taxation. Switzerland has four Official languages: German, French, Italian and Retoroman. They exist here. two International airports: Zurich and Geneva. Switzerland is also home to many international NGOs.
It is naturally multicultural and its cities have strong foreign communities. In Switzerland you cannot miss home, children adapt easily because there are many respected English and international schools.
Switzerland has a reputation for high prices, but this reflects salaries – in 2021 The average monthly salary for a full-time worker in Zurich was around CHF 6500 (approximately 6,100 EUR), in neighbouring Germany, the average is closer 4,500 EUR.
High salaries in Switzerland attract well-educated and well-trained workers from artisans to scientists.
Tax environment
The Swiss tax system may seem difficult to understand because they exist three tax levels: municipal, cantonal and federal. Everyone has different rates and tax rules. However, the procedure is quite simple: only one the tax refund must be paid once.
Taxation of the company
Switzerland offers one with the most competitive taxes for trading and holding companies. In Geneva, the company can expect to pay corporate taxes at the level of 14%, while in some other cantons it may even be lower.
In Geneva, a company that mainly trades abroad can report income in foreign currency, such as US dollars. There is also a specific tax credit for holding companies; in some cases this may reduce corporate tax to zero. It's easy to find well-trained workers. Also, the opening of the start-up, in order to develop a new service or product, is tax effective because from 2020 The tax allowance covers R & D expenditure and patent revenues.
Individual taxation
In Switzerland, individuals pay income and wealth tax. Tax rates vary depending on the canton, so that, for example, someone in Geneva pays a different tax on someone in Zurich. In more rural areas, taxes may be lower than in cities. Switzerland is a safe haven for investors and shareholders.
Even if the investment is subject to property tax, the tax rate is up to 1% and several deductions are available. In some cantons, such as Geneva or Vaud, there is a tax relief known as a tax shield. This ultimately limits income and municipal property taxes to 60% on income, with income that cannot be lower than 1% The world's riches.
This deduction is of interest to those who live on investment income rather than income earned. Another tax advantage is the exemption of private persons from capital gains tax from disposal.
Although there are certain conditions, the exemption applies to medium- and long-term private, non-professional investments and, not with a significant source of income. The exemption also applies to cryptocurrency.
A shareholder living in Geneva who owns over 10% shares in the company, will pay tax only on 70% gross income from these shares, which is 30% income tax. The sale of shares will also benefit from the exemption from capital gains tax. A specific flat-rate tax can be applied for, calculated on the basis of several elements.
This status applies only to persons outside Switzerland and can be tax effective compared to ordinary taxation. Consultation of the Swiss tax advisor is necessary. Given everything, Switzerland has a lot to offer and is definitely a business place worth considering for everyone.