In a world of uncertainties, Switzerland shines as a haven of stability and prosperity. Its robust economy and stable politics attract individuals and businesses seeking security and growth. Renowned for its financial excellence, reliable legal system, and high standard of living, Switzerland is an obvious choice for those seeking refuge in an unpredictable environment.
Switzerland, a small country of 8.5 million inhabitants, is nestled in the heart of Europe, surrounded by lakes and mountains, offering a breathtaking landscape. Its strategic position in the middle of Europe turns it into a key meeting point. With its four national languages - French, German, Italian, and Romansh - as well as a high percentage of the population speaking English, it represents a unique cultural and linguistic melting pot.
An exceptional quality of life
“A healthy mind in a healthy body, in a healthy country" could be the guiding principle of Switzerland. Always at the top of global rankings, according to the Human Development Index (HDI) which measures health, life, and education levels. Switzerland takes the top spot, while also ranking among the happiest nations in the world, coming in fourth in the World Happiness Report.
Renowned for the diversity of its landscapes, Switzerland offers an idyllic natural setting, perfect for outdoor activities such as skiing, cycling, and hiking. The major cities are surrounded by lakes and mountains, reachable within an hour, adding to its allure. This natural wealth is accompanied by a thriving cultural scene and high-quality real estate offerings, making Switzerland a sought-after place to live.
Tranquillity and safety characterize life in Switzerland, ranked among the safest places in the world to reside and raise a family. The low crime rate and commitment to public order reflect the country's social stability. Furthermore, its policy of neutrality has enabled it to avoid international military conflicts, further enhancing its reputation as a peaceful refuge.
An exceptional quality of life
Switzerland ranks among the top ten countries with the highest GDP per capita in the world, reaching approximately $92,000 in 2022, a testament to its robust economy. The Swiss economic structure is dominated by small and medium-sized enterprises (SMEs), accounting for over 99% of the country's businesses, playing a crucial role in economic dynamics and diversity.
In addition to its high GDP, Switzerland also stands out for its relatively low VAT compared to other European countries, thus promoting consumption and economic activity.
Switzerland also invests heavily in research and development (R&D), allocating approximately 23 billion Swiss francs annually, or about 3% of its GDP. Notably, private enterprises largely contribute to this investment, underscoring their commitment to innovation and competitiveness.
Moreover, Switzerland is home to numerous large international groups, attracted by its stable economic environment, high-quality infrastructure, and highly skilled workforce. This presence further strengthens Switzerland's position as a centre of economic excellence and innovation.
For twelve years, Switzerland has ranked first in the Global Innovation Index established by the World Intellectual Property Organization (WIPO), thanks to its world-renowned research centres, advanced technological skills, and skilled and productive workforce. Thus, Switzerland positions itself as a global hub of innovation, attracting the brightest minds and thereby contributing to its continued economic success.
Education and health
Switzerland stands out for its remarkable educational system, offering exceptional learning opportunities from primary to higher education. With numerous universities and world-renowned institutions such as the Swiss Federal Institute of Technology in Zurich (ETH) and the Swiss Federal Institute of Technology in Lausanne (EPFL), the country guarantees high-quality education. Additionally, a variety of international schools cater to the needs of expatriates living in major cities, thereby enriching the Swiss educational landscape.
In terms of healthcare, Switzerland is renowned for the quality, reliability, and accessibility of its medical treatments. Awarded the gold medal in the prestigious EHCI ranking, the Swiss healthcare system has achieved excellent results across all sub-disciplines, thereby confirming its excellence. Swiss hospitals are widely recognized as the best in Europe in terms of access to medical care, ensuring that every individual has access to competent healthcare professionals, whether in medical practices or hospitals.
Moreover, the Swiss healthcare system is based on mandatory basic insurance, with the option to subscribe to supplementary insurance to cover specific needs, thus ensuring comprehensive and tailored care for everyone.
A safe country with tax advantages
According to the "Expat Insider 2023" ranking, expatriates' satisfaction with Swiss politics significantly exceeds their satisfaction with environmental aspects. More than nine out of ten expatriates (93%) positively evaluate the country's political stability, compared to only 63% globally. Additionally, 79% express a very high level of satisfaction, more than double the global average of 34%. Moreover, Switzerland ranks second in the Safety & Security sub-category, with 95% of expatriates stating that they feel safe.
Compared to the EU, OECD, and G20 countries, Switzerland is attractive from a fiscal perspective. For wealthy foreign residents, the Swiss lump-sum tax offers an appealing option, calculating tax based on their lifestyle rather than actual income. Furthermore, Switzerland has established double taxation agreements with many countries, which help resolve potential double taxation issues for individuals with tax ties in multiple jurisdictions.
Has all this made you want to move to Switzerland? Our expert teams at Piguet Galland are ready to answer your questions and provide the best advice for this new project. Feel free to contact us.
Go to the next episode
In this second episode, we will explore all the opportunities and advantages of Switzerland in terms of economics and taxation.
