General Overview. Switzerland is an ethnically diverse country, which maintained its political and economic neutrality through the centuries. Due to its geographical location and international reputation, Switzerland remains the most high-standing and attractive offshore jurisdiction for international investors and entrepreneurs for offshore business purposes.

Banking Sector.  Switzerland has been known for its strong bank secrecy laws for years. Even though local authorities underline that strict banking secrecy remains intact, in several cases Switzerland may exchange information with other countries. The jurisdiction has the largest private banking sector of the world with almost one third of the whole amount of world assets under banks’ management. It is an attractive jurisdiction for companies that wish to conduct banking business, as well as to international investors, that wish to invest their funds through a high-standard banking institution. Banking sector is strongly regulated by the Swiss authorities, but at the same time the jurisdiction provides tax effective environment for managing a bank there.

Investment Funds. Historically, Switzerland was the most popular place for investment fund management, but it started to experience big competition from other jurisdictions’ side in the 80ies of the XX century. As other jurisdictions were able to offer more tax-effective and more flexible regulations, these countries became more attractive to fund managers than Switzerland. Therefore, also Swiss authorities have significantly improved investment fund regulations. Now securities funds, real estate funds and ‘other’ funds can be established and managed from the jurisdiction.  Umbrella funds and foreign funds are also allowed. At present while having advantageous environment for offshore fund management, the Swiss regulations are also in line with EU norms.