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Switzerland Investment Incentives

R&D: Tax incentives available nationally

Various cantons provide tax breaks for R&D and patent boxes and at a national level, the Swiss Innovation Agency may also provide grants, training aid, and other support.

Job creation & CAPEX: Tax and limited Cash incentives available in parts of Switzerland

Many of the cantons offer tax incentives for newly established companies or for expansion investments that increase or preserve jobs. This can range from tax holidays to significant tax relief for cantonal and communal tax purposes for up to ten years. In certain designated economic development regions, it is possible for a tax holiday to be granted for federal tax purposes if certain conditions are met. 100 regional centres in 20 cantons fall within the areas of application from 1 January 2023. They cover around 10% of the Swiss population.

Training: Apprenticeships and vocational training programmes are well established in the country and offer support for both secondary and tertiary-level vocational courses that last between two to four years.

Green and other: Limited Tax and Cash incentives available in parts of Switzerland

The German state-owned bank KfW offers loans on favorable terms for measures that increase buildings’ energy efficiency. The loans are available for both constructions of new energy-efficient buildings and modernisation of existing buildings to boost energy efficiency.

Overview: Most of the incentives offered in Switzerland relate to corporation tax and the applicable rate will be a combination of federal, cantonal and communal rates. Individual cantons have discretion over the benefits offered to companies.

Capital:   Bern
Surface area:  41,290 km²
Population:  8.7 mil
Unemployment:    4.2%
Currency:  Swiss franc (=EUR 1.02)
GDP growth: 2.1% 
FDI net inflow (% of GDP) in 2021: 1.2%

Prospective sectors: Pharmaceutical, engineering, energy, and environment, ICT

Worth knowing: Each canton in Switzerland has a high level of autonomy on its tax structure and incentives offered. Historically a number of cantons had some of the lowest corporate tax rates, however, corporation tax rates are likely to increase to 15% for many foreign-owned companies from 2024 in line with the minimum OECD minimum tax rate.