Switzerland is one of the most stable and attractive jurisdictions for living and doing business in Europe. A high standard of living, a stable economy, a well-developed banking system, and a flexible tax regime make the country appealing both for residence and for entrepreneurs planning to start or acquire a business in Switzerland. This article provides a comprehensive overview of immigration opportunities in Switzerland, setting up or acquiring a business, and the current tax environment in 2025.
Residence Permits and Immigration to Switzerland: What Changed in 2025
The country’s immigration policy is strictly regulated at the federal level, while cantonal authorities play a significant role, as each canton has the right to independently review residence permit applications and set its own quotas for the stay of foreign nationals.
The main changes in 2025 relate to increased quotas for work and business visas for third-country nationals, as well as enhanced compliance checks on tax obligations for those applying for residence through financial independence.
Each Swiss canton sets its own migration policy within the framework of federal laws. This means that requirements, such as the minimum tax level under financial immigration or the amount of business investment, may differ from one canton to another. There are also quotas for the issuance of residence permits to third-country nationals.
Every year, Switzerland sets limits on the number of new B and L permits. Once the quota is exhausted, applications may be automatically rejected or deferred to the following year.
Main Types of Swiss Residence Permits:
Permit L (Short-Term Residence): Issued for up to one year with the possibility of renewal. Primarily used for short-term contracts or seasonal employment. It also applies to individuals undergoing training or internships.
Permit B (Initial Temporary Residence): Issued for one year and renewable annually. Allows the holder to reside and work in a specific canton. This type of permit is the most common among entrepreneurs and financially independent individuals.
Permit C (Permanent Residence): Granted after 5 or 10 years of residence in Switzerland, depending on the applicant’s nationality and level of integration. Holders of a Permit C enjoy nearly the same rights as Swiss citizens, except for voting rights and access to certain public offices.
Grounds for Obtaining a Swiss Residence Permit
Immigration to Switzerland requires careful preparation and an individual approach. Rules depend not only on the applicant’s nationality but also on the purpose of relocation, economic model, chosen canton, and level of integration. It is essential to assess all requirements and risks in advance, including tax obligations and the possibility of permit renewal.
Employment
Citizens of EU/EFTA countries may freely seek employment in Switzerland and obtain a residence permit upon securing a job contract. For third-country nationals, the rules are stricter — work permits are issued only to highly qualified professionals, subject to quotas and only if no suitable candidates are available from Switzerland or the EU.
Financial Independence (without the right to work)
Wealthy foreign nationals can obtain a residence permit without the right to work if they can prove financial independence and enter into a tax agreement with the canton (known as pauschal taxation — tax based on expenses rather than income). The minimum tax ranges from CHF 250,000 to CHF 1,000,000 per year, depending on the canton. Applicants must demonstrate income generated outside of Switzerland and have no economic activity within the country.
Residence Permit through Starting or Purchasing a Business in Switzerland
If a foreign national establishes a company in Switzerland and plans to manage it on an ongoing basis, they may qualify for a B-type residence permit. The key requirement is providing economic benefit to the canton: creating local jobs, paying taxes, and presenting a sustainable business plan. It’s important to note: registering a company alone does not guarantee the issuance of a residence permit. The entrepreneur must prove personal involvement in management and that the business is not merely nominal.
Family Reunification
Family members (spouses and minor children) of Swiss citizens or residence permit holders may apply for a residence permit. Compliance with requirements for cohabitation, financial support, and integration level is necessary.
Business in Switzerland: Company Registration and Acquisition
Switzerland maintains its reputation as a prestigious jurisdiction with minimal administrative barriers for business. In 2025, there is growing interest in:
Streamlined corporate structures with low tax rates
Acquisition of shelf companies with operational history
“Business immigration” strategies – obtaining a residence permit based on managing an active Swiss company
Registering a New Company in Switzerland
Foreign nationals may register and fully own a Swiss company without restriction. The most popular legal forms remain GmbH (Sàrl) and AG (SA). Each structure has its own features and benefits, depending on the investor’s objectives.
1. GmbH (Sàrl) – Limited Liability Company
The GmbH (Gesellschaft mit beschränkter Haftung, in German-speaking cantons) or Sàrl (Société à responsabilité limitée, in French-speaking cantons) is the most convenient and popular option for small and medium-sized enterprises, as well as for foreign investors looking to start a business in Switzerland. The legal meaning and requirements are identical, regardless of whether you use GmbH or Sàrl, depending on the canton of registration.
The minimum share capital is CHF 20,000, which must be fully paid before registration — this is a mandatory requirement.
The company can be founded by one individual or legal entity — Swiss or foreign.
Company management may consist of one or more directors. However, Swiss law requires at least one director to be a resident of Switzerland.
GmbH companies must file annual financial statements and are subject to audit if a certain revenue threshold is exceeded.
2. AG (SA) – Public Limited Company
AG (Aktiengesellschaft, in German) or SA (Société Anonyme, in French) is suitable for larger enterprises, investment vehicles, and structures aimed at international markets or public listing.
The minimum share capital is CHF 100,000, with at least CHF 50,000 required to be paid in at the time of incorporation.
AG is particularly useful for projects involving multiple partners or investors.
AG is managed by a general shareholders’ meeting and a board of directors. Swiss law requires at least one board member to be a Swiss resident — either a Swiss citizen or a foreigner with a Swiss residence permit.
AGs must maintain accounting records, file tax returns, and in most cases, undergo mandatory auditing. This form is ideal for holding structures, international companies, investment platforms, and large-scale projects.
Registering a company in Switzerland requires professional legal support. We guide clients from the selection of the canton and preparation of incorporation documents to opening a bank account and submitting tax notifications.
Purchasing a Ready-Made Company in Switzerland
Ready-made companies are legal entities that have been registered but never used, with a “clean history.” The main advantage of such companies is time. Unlike registering a company from scratch, purchasing a ready-made company allows you to begin commercial activities immediately. This is the optimal choice if a client needs:
✓ Immediate market entry — for example, to apply for licenses, tenders, or rental agreements; ✓ Business reputation — especially if the company was registered several years ago; ✓ Eligibility for residence — when there is an active, operating business.
Legal and Financial Due Diligence
Purchasing a ready-made company involves re-registration of shareholders, directors, and the legal address. However, it is essential to carry out preliminary legal and financial due diligence, which includes:
Analysis of financial statements, verification of any debts or claims;
Screening for inclusion in sanctions lists or legal proceedings;
Assessment of whether the corporate structure meets the client’s requirements (e.g., for bank account opening or licensing).
Many clients prefer to purchase a company as part of a complete package: including a bank account, VAT number, licenses (e.g., for trade or consulting), office lease, and a resident director.
Key Legal Aspects of Doing Business in Switzerland
Beneficial Ownership Switzerland requires disclosure of the company’s ultimate beneficial owner (UBO) at the time of registration. However, this information is not public — it is accessible only to tax and financial authorities.
Banking The UBO must provide proof of funds, a CV, a business plan, and justification for the intended use of the account.
Confidentiality Switzerland offers a high level of confidentiality but also complies with international standards for tax information exchange (CRS, FATCA).
Taxation When registering or purchasing a company, it is important to consider local corporate tax rates, dividend taxation, potential VAT and capital tax obligations, and the possibility of tax benefits (e.g., relocating the company to a “low-tax” canton).
If you are considering relocation or launching a business in Switzerland — contact us for a personalized consultation. We will find the optimal solution tailored to your profile, goals, and budget.
Taxation in Switzerland
Switzerland’s tax system operates on three levels: federal, cantonal, and municipal. This structure provides flexibility and allows for effective tax planning.
Federal tax – a mandatory tax set at the national level.
Cantonal tax – regulated by individual cantons, each offering different rates.
Municipal tax – varies depending on the municipality where the business is registered or where the individual resides.
Key Taxes in Switzerland
Corporate Income Tax Every company in Switzerland is required to pay a federal corporate tax at a rate of 8.5% on net profit. This rate is uniform across all cantons. In addition to the federal tax, companies also pay cantonal and municipal taxes, where the biggest differences are found. The combined effective tax rate (federal + cantonal + municipal) ranges from approximately 11.9% to 22%, depending on the region.
Dividend Tax Dividends paid by Swiss companies are subject to tax both at the company and recipient level. For Swiss residents, dividend tax ranges from 0% to 35%, depending on the ownership structure. For instance, an individual holding more than 10% of a company may qualify for a reduced dividend tax rate.
Wealth and Capital Tax Switzerland imposes a capital tax, applicable to companies and in some cases to individuals. This tax is levied at the cantonal level and is based on the company’s net assets (equity). Rates typically range from 0.001% to 0.5% per year, depending on the canton.
Personal Income Tax Individuals who are Swiss tax residents are taxed on their worldwide income. Income tax is levied at three levels:
Federal income tax – progressive, from 0% to 11.5%.
Cantonal tax – varies by canton, from 5% to 30%.
Municipal tax – added to the cantonal tax and depends on the specific municipality.
With proper business structuring and professional guidance, Switzerland offers the prestige of a top jurisdiction combined with real tax efficiency. This is why the country consistently ranks among the top destinations for business and investment.
Feod Group Services
Legal support for obtaining Swiss residence and registering a business requires a deep understanding of local legislation, the tax system, and administrative procedures. Feod Group provides professional services in Switzerland, with a team that includes Swiss attorneys, immigration specialists, and tax advisors.
We assist clients at every stage — from choosing the canton and legal structure to obtaining residence permits and building an optimized tax strategy.
Our services include:
Consulting on canton selection and immigration type
Registration or acquisition of Swiss companies
Tax planning and structuring
Full preparation and submission of residence permit applications
What types of residence permits exist in Switzerland?
There are three main categories: • Type L — short-term stay (up to 1 year); • Type B — temporary residence with the possibility of renewal; • Type C — permanent residence (PR), possible after 5–10 years of living in Switzerland.
How can you obtain a residence permit in Switzerland in 2025?
There are several legal grounds for obtaining a residence permit in Switzerland: • Employment (with a valid contract from a Swiss employer); • Financial independence (lump-sum taxation, without the right to work); • Opening or acquiring a business and active management involvement; • Family reunification with a Swiss citizen or resident.
For third-country nationals (outside the EU/EFTA), the requirements are more stringent, especially concerning quotas and proving the economic rationale for relocation.
What documents are required to obtain a Swiss residence permit?
The list of documents depends on the grounds for obtaining the permit, but a standard package typically includes: • A valid passport (minimum validity of 1 year); • Proof of grounds: employment contract / business plan / tax agreement; • Financial documents (bank statements, income certificates); • Health insurance valid in Switzerland; • Proof of rental or property ownership in Switzerland; • CV / biography; • Police clearance certificate; • Completed residence permit application form and accompanying documents. • For some applicant categories, a motivation letter or tax status declaration may also be required.
Can you get a residence permit by purchasing property in Switzerland?
No. Purchasing real estate alone does not entitle a foreigner to a residence permit in Switzerland. However, owning property can be a supporting factor when applying on other grounds.
Elena Georghiou is the founder of Feod Group, a company that has been successfully operating since 1992. With over 30 years of experience, she specializes in corporate law, international taxation, immigration law, investment, and financial consulting....
Elena Georghiou is the founder of Feod Group, a company that has been successfully operating since 1992. With over 30 years of experience, she specializes in corporate law, international taxation, immigration law, investment, and financial consulting.
