Switzerland’s popularity as an investment destination extends over a large number of industries. Most importantly, the country offers a stable economy, privacy and security to investors from all over the world.  The recent and ongoing digitization of financial and banking transactions can be said to be a major contributing factor. This has significantly reduced the hurdles involved in entering and participating in the Swiss Financial Markets.
 
The upside to Switzerland is that it offers a wide range of investment opportunities beneficial to all types of investors, whether big or small. Furthermore, the risks involved are manageable and investors are cushioned from unexpected losses. Traditionally foreign investors have sought out equities in Switzerland. However, today Real Estate is becoming a more desirable low-risk investment due to the high demand for property in Switzerland.

Acquisition of real estate

The acquisition of real estate by non-Swiss citizens (whether for investment purposes or for private use) is governed by different rules. Thus, a person abroad can’t acquire unlimited real estate in Switzerland - this is to prevent that it comes in extreme cases to a foreign infiltration. In theory, this can always be the case when wealthy foreigners make large-scale land purchases and less real estate properties remain in Swiss possession.

The so-called Lex Koller of 1983 is still today the standardized governing the purchase of contracts for real estates and properties by non-Swiss nationals. The law is intended to restrict acquisition and counteract excessive acquisitions. EU and EFTA nationals however do not fall under the regulations set by the Lex Koller. This is subject to the condition that they are in possession of a Swiss residence permit or a settlement permit.

Business Start-ups

In addition to land acquisition, domestic and foreign persons also have the opportunity to work directly and economically by establishing a business in Switzerland. However, depending on the type of company or legal form chosen, different conditions apply here. For example, a residence permit or residence within the Swiss Confederation may be necessary in order to establish a company or to financially participate in a company.

This often becomes relevant when founding a stock corporation (AG), because the majority of the members of the board of directors must have a Swiss domicile on the board of directors. The majority of types of Swiss companies are covered by the following types of companies:

  • joint-stock company;
  • a company with limited liability;
  • general partnership;
  • limited partnership;
  • sole proprietorship.

In addition to traditional company types, Swiss law also makes it easy to establish small start-ups for both local and foreign investors. Relocating to Switzerland is another option to consider as it opens new avenues for your business. You will be able to take advantage of operating out of a top European location and translate it into improved profitability through strategic corporate planning.

Mergers & Acquisitions (M & A)

Closely connected with the company foundation is also the economic participation in the form of:

  • business succession;
  • mergers & acquisitions;
  • fusions;
  • spin-offs;
  • takeovers of another kind.

For potential investors, a deeper analysis of the investment is always recommended and necessary. This includes not only appraisals related to business valuation, but also expert legal advice that accompanies and supports all steps from acquisition to completion of the transaction.

SIGTAX offers the required legal support and the necessary know-how in the company formation and business mergers to help optimize all your strategic projects in business life. Our specialist lawyers have many years of experience in handling business transactions and thus ensure the required expert advice.

If you are interested in investment opportunities in Switzerland, you should contact us immediately. We assist you in all areas of the investment and show you potential partnerships and areas of application. Just send us a message or give us a call - we will get back to you with all the necessary details.

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