News - Why Switzerland is the perfect place to protect your assets in a volatile world

Why Switzerland is the perfect place to protect your assets in a volatile world

Published on: Apr 25, 2019

As the world becomes ever more interconnected and globalised, so do the potential threats to wealth and assets increase. From litigation and malpractice to economic volatility, there are few places in the world where a person’s assets are completely safe from creditors.

As the world becomes ever more interconnected and globalised, so do the potential threats to wealth and assets increase. From litigation and malpractice to economic volatility, there are few places in the world where a person’s assets are completely safe from creditors.

Switzerland comes as close as you can get to a jurisdiction that provides robust asset protection. There are many reasons why clients include Switzerland as part of their overall investment strategy as it consistently ranks as a favoured destination for international corporations and High-Net-Worth Individuals (HNWIs).

The most obvious advantage Switzerland has is a solidly stable government, and political and economic stability. While it is certainly not immune to global developments, its adherence to neutrality in foreign policy often limits its exposure to external events. Additionally, the general health and well-being of its citizens means that it is less prone to political disruption, while the economy ranks as one of the world’s most innovative.

The taxation regime is very favourable with taxes ranging from 13.04% to 24.16% for holding companies across the 26 cantons. Furthermore, there are double tax treaties signed with the European Union (EU) and other countries that provide tax exemptions for the dividends received by the subsidiaries of Swiss holding companies.

On 28 September 2018, the Swiss Parliament approved the final draft of the Federal Act on Tax Reform and AHV Financing (TRAF), formerly referred to as Tax Proposal 17. The tax reform foresees the replacement of certain preferential tax regimes with a new set of internationally accepted measures.

The legislative changes will be implemented alongside what is intended to be a broad reduction of the cantonal corporate tax rates. A core element is the introduction of a patent box regime in accordance with the OECD2 standard. The Swiss people will vote on the tax reforms on 19th May 2019 and if accepted it will secure the long-term tax attractiveness of Switzerland as a business destination. The maximum tax rate for corporation will be between 12% to 18% maximum.

Stability, low tax and numerous banking options make Switzerland well positioned as a location for asset protection.