Moving to Switzerland : an opportunity for investors
Why and how you can relocate to this investor hotspot.
In this article, we take a look at why high-earning investors look to relocate and the reasons to consider Switzerland as your new home. For more information on relocating and relocation services, connect with experts at Alpen Partners. With the assistance of our award-winning team, you can make your dreams come true with one move.
Why investors should consider relocation?
Before we look at why Switzerland is one of the best destinations for high-earning investors, we will see why our clients choose to relocate. In all honesty, there are so many benefits to moving to Switzerland, and every person has their own set of reasons to make the decision. These benefits can be financial, personal, or both. Much of an investors’ unease or unhappiness may be solved with relocation. First, let’s look at some of the financial benefits. Tax benefits are a large factor for some. Expatriation may involve relocating to a jurisdiction like Switzerland, Monaco, Dubai, or Singapore. These jurisdictions are usually preferred for their low tax rates, safety, and investor-friendly environments. If you choose to seek citizenship in the new country. By renouncing citizenship, you may no longer be subject to the tax laws of your home country and can enjoy life without the hassle of being taxed on money that you may not even be making in your home country. Further, moving abroad allows you to accept new sectors for investments, allowing you to diversify your portfolio and grow your wealth. Another financial advantage to relocating is that you can save money if you choose a country with a lower cost of living, meaning you can achieve a desirable lifestyle for less. Relocating offers more than financial advantages, however. When you relocate, you get to achieve the lifestyle you want. Different parts of the world offer a variety of climates and environments. Tropical destinations offer a warm climate and a low cost of living, making it the perfect place to retire where every day will feel like a vacation. Some European and Asian expat destinations offer luxurious living and temperate weather. When choosing your new home, make sure the culture offers you what you need in life, not just financial gain. Thinking about what your lifestyle will be can ensure your happiness.
Five reasons to relocate to Switzerland
Now we are going to take a look at what makes Switzerland special. While there are more than five reasons why Switzerland is perfect for offshore living, we think these are at the top of the list.
An ideal location in Europe
First, Switzerland is in an ideal location in Europe, at the meeting point of Western, Central, and Southern Europe, consisting of 26 cantons with the federal government based in Bern. Italy, France, Germany, Austria, and Liechtenstein see residents enjoy a plethora of travel options for pleasure and business. You can be in France, Germany, Italy, or the UK in just an hour. While you are there, you will experience picturesque beauty, including the Swiss Plateau, the Alps, and Jura. Natural beauty attracts visitors from around the globe. The country is small and has an equally small population of around 8.6 million people.
A quality lifestyle
Switzerland is one of Western Europe’s most prosperous countries and boasts nearly the highest GDP in the region, at 748 billion US dollars, and there is no national deficit. This means the country is fully backed by a self-reliant economy. Because of this, people living in Switzerland are afforded a peaceful, luxurious life. Politically, the country is stable, and the country hasn’t been involved in war conflict since 1515. The education system is top tier, so it’s a great place to start a family or move your existing family. The country also reports low unemployment and high per capita income. All of this economic and political stability comes at a price, and it is expensive to live in Switzerland. Our clients who move to the country are high earners.
Benefit of the banking system
Switzerland has some of the most appealing banking laws and regulations in the world. Many attribute the Swiss success to the top-tier banking system. Even when our clients choose not to leave their home country, they open a bank account in Switzerland to benefit from the available advantages. Account-holders can expect years and years of financial growth, privacy, and safety. Swiss laws forbid bankers to disclose that someone even holds a bank account or any information about it without the account holder’s consent.
A place full of investment opportunities
Because of the country’s financial success, there’s no question why there are a plethora of investment options available for those looking to expand their portfolio. Since the country is small and wealthy, it is an optimal place to purchase real estate. Swiss real estate is notoriously difficult for foreigners to obtain, meaning that this real estate is highly coveted by wealthy investors hoping for the highest returns. The small size geographically creates a higher premium on real estate than in a more sprawling nation. In addition, the relatively high income of the population means that it will not be hard to find clients to rent out one’s Swiss real estate. There are many more investment options. If you are hoping to expand your portfolio, we can find investments that will deliver the results you need.
A tax friendly country
While there is a misconception that Switzerland is tax-free, hopeful expats will have to plan to pay their fair share of taxes while living in the country. Foreign individuals and corporations will receive some benefits, though. One of the most appealing perks is the lump sum option for taxes, allowing a household to pay an annual lump sum rather than at a rate based on income which is typically lower than the tax rate on their income. Also, almost 30% of Fortune 500 companies in the US have subsidiaries in Switzerland as there are heavy tax breaks for companies that hold 20% of shares of other corporations. Cantons don’t levy any taxes on holding corporations, making it a popular location for small shell corporations.
Relocating to Switzerland with Alpen Partners
You can easily access the high standards of living and freedom, while it does come with a price. Admittedly, it’s easier for residents of European nations, such as those in the Schengen region, EU, or EFTA, as these citizens have access to Switzerland without a visa and simply need to apply for a residence permit. It is more difficult for non-European immigrants to begin their life in Switzerland but not impossible. A non-European citizen will have to apply for a long-stay visa to enter the country, such as the Swiss Family Unification Visa, work visa, study visa, or another applicable program. In addition, Switzerland offers a residency by investment option that grants residence to investors who invest about USD 170,000 or CHF 150,000 minimum as a lump sum taxation fee.
Ready to take the leap? With the assistance of our immigration lawyers, you can live your dream in the Alps and create a relocation plan that will best fit your needs no matter how much planning you’ve done so far. Every step can be made easier with help, including choosing a country that best fits your needs, finding the residence options that work with your goals, making sure everything is completed correctly regarding taxes, acquiring work permits, making investments, and more. If you feel trapped by your local investment options and want to spread your wings a bit, consider relocating to Switzerland with Alpen Partners. Connect with us today!