Switzerland country and foreign investment regime

Switzerland Geography

Switzerland is a landlocked, independent country strategically located at the heart of continental Western Europe and measuring 15,941 square miles. It is bordered on the west by France, on the north by Germany, on the east by Austria and the principality of Liechtenstein, and on the south by Italy.

The country lies at the center of Europe's transalpine routes with two-thirds of its frontiers following the natural contours of mountain ridges, crests, lakes and rivers and with one quarter of its area consisting of scenic high alps, lakes and barren rock.

The Swiss Alps are both the dividing line for and transform four distinct Central European climates into a single transitional climate. Because of the geographic diversity of the country rainfall varies dramatically from region to region with an annual average of 40 inches. The diversity of vegetation is testimony to the national variation in rainfall and climates.

Communications and telecommunications are what can be expected from a modern industrialized nation with one of the highest standards of living in the world. Switzerland has a dense road and rail network with multiple connections to all 5 bordering countries and with several national airports providing direct and connecting flights to all major international destinations. The two most important are Zurich and Geneva (Cointrin).

The time-zone is as for the EU: GMT plus one hour in winter. In summer they don't work anyway.

Switzerland Population, Language and Culture

Switzerland's unique geographic location means that the country has been subjected to an unusual diversity of cultural and linguistic influences. The 3 official languages German, French & Italian are the mother tongues of 64%, 20% and 7% of the population respectively. The English language is widely used and spoken in business and professional circles.

Switzerland has been described as a nation which has no unity of ethnic heritage, language or religion but which is nonetheless united and prosperous. Although the culture could be described as a blend of German, French and Italian influences the distinct ethnic strands represent a considerable obstacle to the emergence of any homogeneous cultural identity.

The estimated population stands at approximately 7.6m people for July 2011.

Switzerland Government

Switzerland is a federal state with 23 sovereign cantons and 3 semi-cantons (making 26 cantons in all). In addition there are over 3,000 political communes (autonomous self-governing bodies endowed with legal personality). This complex combination of multiple sovereign bodies is reflected in the Swiss legal and taxation system and has resulted in political and administrative responsibilities being split between federal, cantonal and municipal levels of government.

The rights and duties of citizens and governing bodies are set out in the 123 articles of the Federal Constitution of 1848-1874. The principal federal organs of government are the Federal Assembly, the Federal Council and the Federal Supreme Court. The responsibilities of the Federal Government include the supervision of external & internal security, foreign & military affairs, transportation, forestry, water conservation, telecommunications, the monetary system, social security and the uniform administration of justice in areas of civil and criminal law.

Legislative power rests with the bicameral Federal Assembly comprising both a National Council consisting of 200 deputies elected every 4 years by a system of proportional representation and the Council of States in which each canton is represented by 2 deputies. Executive power vests in the Federal Council, a 7-member board consisting of elected deputies each of whom presides over a federal department.

Although each canton elects and maintains its own magistracy for ordinary civil and criminal trials, ultimate judicial power is vested in the Federal Supreme Court based in Lausanne. The Swiss Civil Code of 1912 has served as a model for the administration of justice in many countries and has often been copied verbatim. The difficult task of creating a uniform judicial system with so much diversity in the national structure has produced a large number of jurists of international repute.

Switzerland is not a member of NATO or the European Union. It has a long historical tradition of neutrality. However, it is a member of the OECD, the WTO, and the European Free Trade Area (EFTA), and has acceded to large parts of the 'acquis communautaire', the body of EU law, particularly in areas connected with trade and the economy.

Swiss separateness is gradually yielding to globalisation. In 2002 the Swiss voted in favour of joining the United Nations in a referendum, and the country's gradual progression towards EU membership seems ineluctable despite taxation problems. A first set of 'bilateral agreements' with the EU came into force on 1st June 2002, and a second set, signed in June, 2004, came into force in 2005.

In considering its options in its relationship with the EU, Switzerland is expected to mull at least five choices, including: maintaining the status quo; pursuing a "consolidated bilateral route" which would strengthen institutional cooperation; advancing a multilateral form of cooperation; an EU 'lite' membership which would permanently exempt Switzerland from certain EU decisions; and full membership.

Switzerland Economy and Currency

Switzerland's economy consists predominantly of low-bulk, high-value, service-orientated, export-driven activities utilizing a highly skilled, highly paid workforce. Among the factors which have moulded the development of the Swiss economy are the advantage of being strategically located on international trade routes, a shortage of raw materials and natural resources (other than hydro-electric power), economic pressure on land leading to high rentals, and the inability of the domestic market to absorb the total output of a skilled and efficient workforce. Thus, Switzerland's major industries include tourism, the provision of banking, insurance and financial services, watch-making, precision instrument manufacturing and chemical manufacturing. Some companies export virtually all their production

As the world's predominant private banking center Switzerland is estimated to be the home of 35% of the world's private wealth. Banking secrecy and Switzerland have long been considered synonymous terms, although the country has passed many laws directed against money laundering, and participates fully in international efforts against it (see Other International Agreements). GDP was USD42,900 per head in 2010 (estimated), at purchasing power parity. The OECD released GDP and household consumption comparisons based on purchasing power parities showing that Switzerland’s GDP per head slipped from 30% to 20% above the OECD average between 2002 and 2005. The economy slowed in 2000-2003 in response to international conditions but returned to growth of 1.8% in 2004, 1.9% in 2005, 2.7% in 2006, 3.3% in 2007 and 1.9% in 2008 (estimated) and slowed to -1.9% in 2009 (est), seeing a return to growth in 2010 with 2.7% (est). The World Economic Forum's Global Competitiveness Report 2010-2011 ranked Switzerland in first place, followed by Sweden, Singapore, the US and Germany.

Switzerland remains the country with the highest quality of living according to a survey designed to help governments and multinational companies place employees on international assignments.

There are no exchange controls in Switzerland. The Swiss Franc (CHF) is fully backed and is one of the world's strongest currencies. It has appreciated 300% against the US dollar since 1974, a factor which encourages international investors to locate their assets in this country.

An umbrella group representing the Swiss investment and banking industry published a document dubbed 'Vision 2015' in September 2007, which outlines a joint strategy to put Switzerland among the top three centres of international finance.

The growth targeted by the document would create between 40,000 and 80,000 new jobs, and generate CHF11-17 billion in additional new tax revenues, depending on economic trends and how successfully the strategy is put into practice.

The strategy was announced on September 13, 2007 by the Swiss Bankers Association (SBA), the Swiss Insurance Association (SIA), the Swiss Funds Association (SFA) and the companies responsible for Switzerland’s financial infrastructure, including SWX Group, SIS Group and Telekurs Group.

Specific measures with regard to taxation, regulation and institutions have been drawn up for individual industries, and will be put forward for debate in the political arena.

The groups noted that the finance industry is the most important sector of the Swiss economy, accounting for almost 15% of gross domestic product (GDP) and 16% of total tax revenues.

Switzerland Entry and Residence

Entry into Switzerland, residence in Switzerland, Swiss naturalization and the right to work or purchase property in the country are all inextricably interlinked and so are all dealt with together.

In September, 2005, a 56% majority of Swiss voters approved proposals to open the country's borders to workers from the ten new EU member states. The vote in favour of the extension of the bilateral agreement on freedom of movement to the ten new members was welcomed by both the Swiss authorities and the European Commission, as there had been some uncertainty as to the public mood on the matter.

The free movement of persons between Switzerland and the ten new EU member states came into force on April 1, 2006. In a referendum on February 8, 2009, the Swiss electorate approved the continuation of the Free Movement of Persons Agreement after 2009 and Protocol II, which came into force on June 1, 2009 and further confirming the Swiss commitment to the Bilateral II agreements.

From May 1, 2011, citizens from the EU A8 countries (Poland, Latvia, Lithuania, Estonia, Slovakia, Slovenia, the Czech Republic and Hungary are enjoying complete freedom of movement, and occupying a level playing field with the previous EU 17 countries. The right of free movement is complemented by the mutual recognition of professional qualifications, the right to buy property, and the coordination of social security systems.

Third-country nationals are subject to the Federal Act on the Residence and Settlement of Foreign Nationals (ANAG/LEtr) and its implementing ordinances. Admission for non-EU nationals is restricted and residence permits are granted at the sole discretion of the authorities. Authorisation to reside in Switzerland can be granted if the regulations regarding foreign nationals and the labour market are complied with but normally there is not any automatic right. Residence can be authorised if it is for specific purposes (education/training, family reunification, retirement in Switzerland) provided certain conditions are complied with. The FOM can give further information on this.

Third-country nationals with a permanent residence permit are entitled to have their children and spouse join them. Persons with an annual residence permit have no entitlement. The cantonal immigration authorities can, however, authorise family reunification if third-country nationals with an annual residence permit can provide evidence of suitable accommodation, adequate income and stability (i.e. evidence that the person's stay in Switzerland has not led to any complaints). People who enter Switzerland to join other members of their family may only take up employment if the employer has applied for and obtained authorisation from the cantonal office (immigration or labour market authorities). Information on family reunification is obtainable from the FOM and information on the authorisation procedure from the cantonal immigration authorities.

Entry for a short period of time: For nationals of most countries visa-free entry is permitted for a period of up to 90 days after which time the visitor must leave the country.

Obtaining Residence in Switzerland: The available types of permit are the '120-day' permit, the class A, B or C permits, the fiscal deal permit and the political refugee permit. The class A permit (for 'blue-collar' workers) and the political refugee permit are not described further here. Permits other than the '120-day' variety are subject to a quota system. However, agreements with the EU are gradually putting EU freedom-of-movement rules into place which will eventually allow EU citizens to by-pass the quota permit system altogether.

The '120-Day' Permit: This permit allows a managerial or specialist worker to work in a specified position for up to 120 days in a particular year; rotation among a number of individuals is not allowed.

The Class B permit: The class B permit is the most commonly issued permit and gives the right to live and work in Switzerland. It is the permit of choice for professional and managerial people, self employed individuals who wish to start their own company in Switzerland, and people who wish to reside in Switzerland and are wealthy enough to live off their own resources (but see the Fiscal Deal Permit below). The Class B permit has the following characteristics:

It is usually granted for a period of up to one year at a time;
If the permit is for work purposes then the applicant must have a job to go to in Switzerland;
The granting of his permit must not have the effect of depriving a Swiss national of employment. Since many trades in Switzerland are protected by guilds which prohibit the recruitment of foreign workers an application for a class B permit is not always successful;
The class B permit allows the applicant to bring his wife and children into the country but not his extended family;
The application is not prejudiced by inability to speak the official languages of Switzerland;
It takes about 3 months to obtain a Class B permit.

The Class C permit: The class C permit is a longer-term residency permit which gives the applicant almost the same rights as Swiss citizens and allows the applicant to buy real estate in Switzerland. To obtain a class C permit one must have had a class B permit for between 5 and 10 years depending on country of origin. The class C permit is the last step before applying for Swiss citizenship. It is subject to the same conditions as the class B permit.

The 'Fiscal Deal' Permit: This is a variant of the class B permit and is primarily for wealthy individuals who wish to live in Switzerland off income earned outside Switzerland (e.g. international tennis players and formula 1 drivers) but who have no need or desire to work in the country. To obtain a fiscal deal permit the applicant needs a certified net wealth of at least CHF2m and must be willing to spend at least 180 days a year in the country. The fiscal deal permit allows the applicant to pay considerably less tax than a Swiss national of his income bracket would normally pay since the assessment to tax is not based on the applicant's real income but rather on a much lower notional amount.

For further information see lump sum assessment method in our personal income tax section. The amount of tax payable by the holder of such a permit is a matter of personal negotiation with the canton in which the applicant resides. Switzerland is already a low tax country by OECD standards and the 'fiscal deal' results in extremely low levels of taxation. It takes about three months to obtain a fiscal deal permit.

Obtaining Swiss nationality: It goes without saying that Swiss nationals do not need permits to reside, work or purchase property in Switzerland. Obtaining Swiss nationality or citizenship is a long-drawn-out process involving procedures at federal, canton and communal levels. In order to obtain Swiss citizenship an applicant who is not the offspring of a Swiss national must satisfy the following criteria:

There is an examination in Swiss history and culture;
The applicant must have lived in the country for several years with a class B (or 'fiscal deal') permit;
The applicant must then obtain a class C permit and continue to live in Switzerland for several more years.

Purchasing Real Estate in Switzerland: Since 1960 there have been restrictions on the purchase of real estate by non-Swiss nationals which although substantially relaxed in recent years are still draconian by OECD standards.

3 situations apply:

Foreigners who have acquired a class C permit can buy vacation properties in designated areas.
Foreigners who are not deemed resident in Switzerland under Swiss law can only purchase tax-exempt apartment blocks tied to below-market rentals for a period of 20 years. Such purchases require official permission. After 20 years they may raise the rents on the blocks purchased.
The acquisition of premises for business purposes is unrestricted and although permission is required it is normally granted.

The purchase of real estate is conducted by a notary public who will not allow the transaction to proceed unless it is permitted by the law. The purchaser's details will be entered in the property owners' registry after the Government issues a notice of confirmation that the transaction is legal.

In June, 2005, 54.6% of Swiss voters agreed to join the Schengen and Dublin accords on passport-free European travel and the harmonisation of asylum procedures. Switzerland became a member of the Schengen area on December 12, 2008.

The SWX Swiss Exchange

The Swiss stock exchange (SWX) was formed in 1995 by a merger between the country's three existing exchanges in Geneva, Basle and Zurich.

SWX is the world's sixth largest securities exchange, and the third largest in Europe.

The Exchange is governed by the Swiss Stock Exchange and Securities Trading Act of 1995, which includes listing requirements and continuing obligations for listed companies.

SWX has a highly-integrated electronic trading platform. It has also been innovative in product terms, launching the electronic SWX repo market in 1999, and a high-growth market called SWX New Market in the same year which has already seen a number of successful high-tech listings. Eurex, the first transnational derivatives exchange, is a joint venture between SWX and Deutsche Borse AG. SWX and the German Borse have also combined their trades in structured products under a joint subsidiary which launched on January 1, 2007. SWX is also a partner in STOXX.

Stocks, bonds and warrants are traded on the SWX Swiss Exchange. Since July 1998, SWX has also provided facilities for electronic trading in Eurobonds. Latterly, it has introduced Exchange Traded Funds (ETFs). One of the best-known SWX products is the SwissIndex family of securities market indicators. It comprises the Swiss Market Index (SMI), which is made up of the most important Swiss stocks and represents 80% of total market capitalization in Switzerland; the broader-based Swiss Performance Index (SPI), which covers all Swiss stocks (including those of Liechtenstein); and the Swiss Bond Index (SBI), which measures the performance of CHF bonds with a minimum life of one year. A separate index is published for investment companies.

After years of planning, SWX finally committed itself to a virtual future in June 2001 when its alliance with Tradepoint, a consortium of leading international investment banks, culminated in the launching of the virt-x pan-European electronic stock market on June 25th. Virt-x has subsequently become a wholly-owned subsidiary of the SWX.

Virt-x lists the top stocks from most of Europe’s largest bourses on a single screen, operates with a central counterparty facility with a choice of clearing organizations (LCH.Clearnet Limited, SIS x-clear AG) and settlement (CrestCo Limited, Euroclear Bank, SIS SegaInterSettle AG). It has a single rulebook for all stocks regardless of listing location. The exchange operates under UK regulatory standards.

Virt-x offers full dealing services in all the main index stocks in France, German and Italy as well as the FTSE Eurotop 300, Stoxx and MCI indices which cover smaller European markets as well.

In October, 2004, SWX approved changes to its reporting regulations which reduced the potential for insider trading, and brough Switzerland into line with the rest of Europe in this regard. Under the new rules, which came into force in July, 2005, listed companies are obliged to report to the SWX transactions undertaken by a single member of their management team in the company's shares totalling more than CHF100,000 (USD79,000) in any one month. Such reports must be made within two days of the transaction having taken place.

This in fact represents a 'watered down' version of the original draft proposals put forward by the SWX Admissions Board, although representatives of the Swiss banking and business communities had pushed unsuccessfully for a higher threshold and extended reporting deadline.

Both the SWX and virt-x recorded all-time highs in turnover and trading volume in 2006. At 8785.7 points, the blue chip SMI index fell just shy of closing the year at an all-time high. The described the performance of the SMIM which finished the year up 47%, as "particularly remarkable".

On January 1, 2007, the SWX adopted new Rules of Procedure which, according to the exchange, have brought considerable changes and benefits for issuers, participants and traders. These changes include an improved system of checks and balances, greater legal certainty, standard rules of procedure governing investigative and sanction proceedings and the faster completion of these proceedings.

Under the reforms, the bourse's Admission Board retains its legislative authority as before, but ceded its judicial powers to an independent Sanction Commission (which replaced the current Disciplinary Commission), in a bid to improve the separation of powers.

The SWX also standardised procedural rules that are applicable across all areas of supervision.

The exchange believes that this reorganisation of judicial powers, in addition to other "select changes", have meant that proceedings are concluded more rapidly for participants, traders and issuers.

In addition, a new statute of limitations provision will help to speed up the conclusion of proceedings, the Exchange said. This means that no proceedings will be instituted if a possible breach of the SWX rules and regulations happened more than two years ago. Similarly, a decision may no longer be taken if more than two years have passed since proceedings began.

In a joint effort, SWX and IAZI (Information and Education Centre for Real Estate AG) are marketing Swiss indices on single-family homes, freehold flats and multifamily housing. The indices have been developed by IAZI and will be calculated on a continual basis. As a result, indices compiled by a fully independent firm and based on actual real estate transactions is available in Europe for the first time. The SWX said that moreover, these unbiased indices provide a credible foundation for derivative financial instruments.

IAZI bears responsibility for compilation of the indices, while their publication and distribution is in the hands of SWX, with marketing conducted on a co-branding basis. Publication of the indices commenced on 18 April 2007 and encompasses the following five indicators:

The SWX Swiss Exchange, virt-x and Scoach Switzerland Ltd recorded all-time highs in turnover and total number of transactions in 2007. Annual turnover rose by 27.7% versus the previous year to reach an impressive CHF2,527 billion. Particularly noteworthy was the explosion in trading activity in structured products and warrants, which grew by 56.7%.

Turnover in Exchange Traded Funds (ETFs) also registered a marked increase of 51.7% to CHF28,796 million. For ETFs, the number of listed products rose from 61 (end of 2006) to 125 (end of 2007), by the end of 2008 this stood at 150 and rose to 269 by the end of 2009. By the end of 2010 this figure had risen by nearly 85% to 497. Turnover in Exchange Traded Funds and Investment Funds was recorded at CHF59.6 million on the last day of trading in 2010.

The number of listed structured products and warrants surged from 10,369 (end of 2006) to about 19,000 (end of 2007). The growth has continued, albeit at smaller pace, recording 21,873 by the end of 2008 and 23,645 by end of 2009, and 30,604 by the end of 2010. The number of transactions in equities (including funds and Exchange Traded Structured Funds) recorded a 46.3% gain compared to 2006. The trend continued with a gain of around 33.5% in 2008 but by the end of 2009 a decline of around 23% was recorded. The figure for the end of 2010 was virtually unchanged from the previous year.

On the last trading day of 2007, the blue chip SMI index stood at 8,518.2 points down 3.05% versus the end of 2006, the newly introduced SLI Swiss Leader Index PR stood at 1,299.5 points, down 1.06%, by the end of 2008 it stood at 789.6, down by 39.2% it had recovered to 1003.3 points by the end of 2009, an increase of 27%. For 2010, a modest rise of 1.39% was recorded with a final figure of 1017.26. The broadly based SPI stood at 6,942.24 points, up 0.19% at the end of 2007, by the end of 2008 it had dropped 34% to 4567.6, it regained a fair share of its losses by the end of 2009, finishing up 23.2% at 5626.4, 2010 saw a modest rise of 2.9% to 5790.6.

The SWX also announced that virt-x, the London-based securities exchange and subsidiary of SWX Group, had changed its name following the merger of SWX Group, SIS Group and Telekurs Group in 2008. Effective March 3, 2008, virt-x Exchange Limited changed its legal name to SWX Europe Limited.

Lee Hodgkinson, CEO of virt-x, commented: “We are committed to providing the most liquid venue for Swiss blue-chip trading from our base in London. The new SWX Europe brand clarifies our identity and underpins our competitive positioning, as we continue to deliver our strategy to revitalise trading services in a MiFID environment.”

Swiss multinational companies account for 14% of blue chip market capitalisation of the STOXX 50 index. Also, SWX Europe is the home for the SMI (Swiss Market Index) and the SLI (SLI Swiss Leader Index), amongst which are five of the world’s top 100 companies.

“Our new name not only reflects the essence of our core business in Swiss blue-chip equities but also the revitalisation of our trading offering," commented Hodgkinson.

"The launch of a non-displayed liquidity service and additional headline tariff cuts will consolidate our position as the home market for Swiss equities trading as the exchange landscape undergoes significant change. We remain committed to embracing the needs of our users across Europe and the US from our base in London," he added.

The Swiss financial centre’s three infrastructure companies, which merged as of January 1, 2008, to create Swiss Financial Market Services Ltd, recorded robust financial results for 2007, the last year in which the three companies prepared individual accounts as separate entities.

The SWX Group, SIS Group and Telekurs Group each generated record earnings in 2007. Higher volumes in all business fields contributed significantly to these results.

For the SWX Group, 2007 was the most successful year in its history. Securities turnover on the SWX Swiss Exchange, SWX Europe (formerly, virt-x) and Scoach Switzerland Ltd. increased by 27.8% to CHF2.528tn (EUR1.562tn).

Turnover in structured products and warrants rose a marked 57.7% and in ETFs by 51.8%.

The Group’s net profit for 2007 surged an annualised 49% to CHF244.3mn, representing the sixth consecutive year of record earnings. Increased demand for trading capacity contributed significantly to that result. Operating income in 2007 grew by 26% to CHF533.8mn.

Ten initial public offerings were launched on the SWX Swiss Exchange in 2007. The newly listed companies had a collective market capitalisation of approximately CHF5.0bn, CHF1.5bn of which was placed in the public capital market. With the IPOs of Cosmo Pharmaceuticals and Addex Pharmaceuticals, the SWX Swiss Exchange was able to expand further its position as Europe’s leading life-sciences exchange.

Dramatic growth was also recorded in the number of new issues of structured products and warrants. At the end of 2007, the number of outstanding products totalled 19,062, with 25,742 having been admitted to trading during the year. 64 new ETFs were listed on the SWX Swiss Exchange in 2007, bringing the year-end total to 125 products. A further 25 had been added by the end of 2008, while 2009 saw an increase of 119, bringing the year-end total to 269 products.

Also, the SWX Swiss Exchange and SWX Europe pressed ahead with their “Trading for the Future" initiative, which is aimed at expanding the exchanges’ trading infrastructure.

The SIS Group, which provides clearing and settlement services, also achieved solid results, and the 2007 financial year represented the company’s fourth consecutive year of record earnings. Operating income rose by 78.1% to CHF108.8mn, while net profit grew from CHF34.6mn in 2006 to CHF70.3mn in the past year.

At the Telekurs Group, the payment services and financial information company, operating income increased by CHF136.3mn, or 19.5%, to CHF834.1mn; earnings before interest and tax rose by 23.5% to CHF79.3mn. These key readings are all the more impressive when one considers that Telekurs acquired the French financial information company Fininfo in 2007.

"Given those results, Swiss Financial Market Services Ltd is starting out on an extremely solid base," the SWX stated.

In November 2007, the SIX Swiss Exchange announced its decision to relocate all of its share trading to Zurich to achieve a harmonised regulatory environment for all Swiss stocks.

Part of the Swiss stock exchange operated as SWX Europe in London and managed the trading of 32 blue chip stocks. These stocks were repatriated to Zurich to take advantage of one set of rules and regulations and simplify trading. The move consequently allowed Swiss stocks to be subject to internal Swiss regulation and monitoring from mid-2009.

In order to continue to satisfy the demands of its trading participants in London, the SIX Swiss Exchange will opened up a representative office in London to handle local administrative and technical participant support.

According to the SWX, the transfer would not affect the trading systems and no participant-side changes or adjustments would be necessary. The ongoing project aimed at modernising the entire trading system will proceed according to plan, it announced.

"With this strategic reorientation, SIX Swiss Exchange is on one hand taking into account the changed competitive environment and, on the other, streamlining its operations and lowering costs substantially, thereby enhancing its competitiveness, reinforcing its role as an international securities exchange, and strengthening the Swiss financial centre," the exchange stated.

In 2008, the SIX Swiss Exchange, SWX Europe and Scoach Switzerland Ltd. recorded annual turnover of CHF1.93bn representing a 23.5% decline compared to the extremely heavy trading witnessed in 2007. In contrast, the total of transactions rose to an all-time-high of 45,212,001 – a 27.9% increase versus the previous year, these declined by 23% in 2009 to 34.8mio. Bond turnover increased by 24.4% on an annual basis, with ETFs registering a full 36.8% gain.

The total number of trades in equities (plus ETSFs) was up 31.1% in 2008 compared to 2007. Meanwhile, the total number of bond trades and ETF trades grew by 34.7% and 64.3% respectively in 2008 compared to the previous year. The total number of trades in international bonds and structured products and warrants declined by 17.1% and 12.9% respectively in 2008 compared to 2007.

On December 30, 2008 the blue chip SMI index was down 34.46% for the year, the SLI Swiss Leader Index PR was down 39.04%, and the broadly-based SPI was down 33.82%. By the end of the following year, the SMI index had risen by 18.3%, the SLI and SPI also recorded gains of 23.2% and 27% respectively. At the end of 2010, the SMI index was down -1.7% on the previous year, while the SLI had gained 1.4% and the SPI 2.9%.

Lowtax Jurisdictions

Switzerland: Country and Foreign Investment Regime

On this Page:

Strategic Partners