Why is Switzerland Offshore a Tax Haven?

 Switzerland Offshore a Tax Haven

An offshore company is located outside of the country of origin, where it has its principal office and operations. It is recognized as one of the most convenient jurisdictions for the formation of offshore corporations due to the low taxation allowable by the peculiar low tax laws. Officially, It is not an offshore jurisdiction. Still, it has the features of an offshore zone due to its taxation system, and it becomes desirable for the formation of offshore companies. It has double tax avoidance deals with more than 100 other Nations. Its tax structure is different for each canton, and a business can be registered in the canton that provides the lowest taxation. At the moment, Schwyz and Zug are Switzerland's most attractive cantons for the formation of offshore companies.

What is a Tax Haven?

A tax haven is a foreign country offering a safe business climate for individuals and businesses with tax liabilities either limited or no. Offshore companies in tax haven countries have access to meager tax rates and pay only a nominal fee for the services offered by the jurisdiction. There has been a significant increase in starting an offshore company in Switzerland over the last few decades.

It is mainly due to the tax benefit that the nation offers to offshore companies established in its territory. Different features of a tax haven encourage company owners and companies to start a business overseas. An offshore company gives the company operations flexibility and power, which may not be the case in residential jurisdiction. If you're looking to start an offshore business, then read more about the factors that make Switzerland a tax haven for overseas business.

Factors That Make Switzerland Tax Haven

Limited or No Tax Liability

Tax exemption is a critical factor that makes Switzerland a tax haven country. Offshore companies in Switzerland are removed from company taxation. Thus the investment income of the company will be used in the monetary expansion of the business. Tax haven countries pull interest in their banking and financial institutions by allowing their authority to invest in the offshore business. These countries generally charge their services a nominal amount.

Confidentiality and Privacy

Vital information concerning offshore companies, such as personal and financial information, is not documented in public records. Confidentiality is a critical nature of the offshore industry, as it ensures complete confidentiality of the operations and practices of companies. Business owners are attracted to tax havens, mainly due to the high level of protection, which helps protect corporate assets.

Lack of Currency Stability

There are no restrictions on the process of money exchange for transfers to and from the territories of Switzerland. You can send money freely from jurisdiction, without any restrictions. The lack of currency control contributes to a loss of trust among investors. It ensures that investments are protected and accessible where necessary. Investing in these jurisdictions with a lack of currency control allows individuals and businesses to avoid complexity with the cash flow on each transaction.

Favorable Tax Agreement

Switzerland has dealt with the double taxation of various countries. It is ideal for investors to start a wide range of businesses within the territory. Twin tax treaties are country-to-country deals that help investors avoid paying twice the levy. There are other provisions of double tax treaties in Switzerland, such as lower tax rates on world wages, no capital gains tax, and tax deduction on interest, affiliation, and profits.

Flexibility at the Company

Companies in tax haven countries are not required to pay the capital out. There is also no need to state the operational items involved in their business activities. The Corporate Strategy in Switzerland is versatile for offshore companies. The company's shareholders and directors have a minimum ownership limit for their business. The company integration process requires less time and money. Nevertheless, accounting and reporting are not compulsory for offshore companies in Switzerland.


Starting an offshore company in Switzerland is of enormous value to people and businesses looking to protect property. The primary concern of a corporation is high tax rates and taxation, which is not possible in the host country. Therefore, tax havens act as protection for these companies in the form of an offshore company that allows businesses to take advantage of various benefits.

Main Features:

  • Countries with tax havens can be perfect for offshore companies because they help save taxes.
  • Switzerland has versatile laws and legislation relating to the establishment of offshore companies in its jurisdiction.
  • Offshore companies may be assured of privacy and confidentiality, as regulatory authorities cover information relevant to the business.
  • The business is to benefit from the provisions of the Double Tax Treaty.
  • The incorporation of enterprises requires fewer resources and can be set in a shorter time frame.

With a host of benefits available, you can choose Switzerland to get you started with your offshore company. We at Business Setup worldwide provide business setup solutions for starting a Swiss company. If you need help setting up the company, you can contact us today. We'll be happy to assist!