Switzerland: Investing in Switzerland
According to UNCTAD's World Investment Report 2024, FDI inflows to Switzerland returned positive after several years in 2023 (at USD 13.5 billion), compared to a negative inflow of USD -43.2 billion one year earlier. Of this total, 96% was equity capital and 4% was intragroup loans. In the same year, the total stock of FDI stood at USD 1.13 trillion. Switzerland was also the fouth-largest investor worldwide, with an outflow of nearly USD 105 billion. As per the latest figures from the Swiss National Bank, a breakdown of capital stocks by domicile of the ultimate beneficial owner shows that the U.S. are the main investor in the country (39% of the total FDI stock), followed by Ireland (11%), Germany and the Netherlands (5% each). In terms of economic categories, FDI is mostly directed towards financial and insurance services (42.5%) and manufacturing (20.9%). According to the latest data from the OECD, in the first half of 2024, FDI flows to Switzerland were negative by USD 1.6 billion, compared to investments worth USD 12.3 billion recorded in the same period one year earlier.
Switzerland is an attractive destination for foreign investors because of its economic and political stability, transparent and fair legal system, reliable and extensive infrastructure and efficient capital markets. Despite its attractiveness, FDI flows to Switzerland remain highly volatile due to the country's large exposure to international trade dynamics. Several Swiss cantons have used tax incentives to attract investment into their jurisdictions, including tax exemptions for new companies for up to ten years in some cases. After criticism from the European Union, this practice was severely restricted: the Federal Act on Tax Reform and Swiss Pension System Financing (TRAF) now obliges cantons to offer the same corporate tax rates to both Swiss and foreign companies. Nevertheless, the law allows cantons to continue setting their own rates and to offer incentives for corporate investment through deductions and preferential tax treatment. The major laws regulating foreign investment in Switzerland are the Code of Obligations, the Lex Koller, and the Cartel Law. Except for the agricultural sector, foreign investment in Switzerland faces few significant barriers, with no reported discrimination against foreign investors or foreign-owned businesses. There is no screening of foreign investment; however, FDI controls do apply to certain industries and sectors (i.e. banking, securities and real estate). Furthermore, the Federal Council adopted the dispatch on the Investment Screening Act on 15 December 2023. Investment screening will focus on state-controlled investors and domestic companies operating in particularly critical sectors but is not in force yet. The country ranks 3rd out of 82 in the Economist Business Environment ranking and 13th in the AT Kearney Foreign Direct Investment Confidence Index. Moreover, the country ranks 1st among the 133 economies on the Global Innovation Index 2024 and 2nd out of 184 on the latest Index of Economic Freedom.
Foreign Direct Investment | 2020 | 2021 | 2022 |
FDI Inward Flow (million USD) | -50,252 | -88,169 | 13,311 |
FDI Stock (million USD) | 1,183,255 | 1,038,359 | 1,036,890 |
Number of Greenfield Investments* | 128 | 147 | 151 |
Value of Greenfield Investments (million USD) | 3,114 | 3,247 | 8,354 |
Source: UNCTAD, Latest available data
Note: * Greenfield Investments are a form of Foreign Direct Investment where a parent company starts a new venture in a foreign country by constructing new operational facilities from the ground up.
Country Comparison For the Protection of Investors | Switzerland | OECD | United States | Germany |
Index of Manager’s Responsibility** | 5.0 | 5.3 | 9.0 | 5.0 |
Index of Shareholders’ Power*** | 5.0 | 7.3 | 9.0 | 5.0 |
Source: Doing Business, Latest available data
Note: *The Greater the Index, the More Transparent the Conditions of Transactions. **The Greater the Index, the More the Manager is Personally Responsible. *** The Greater the Index, the Easier it Will Be For Shareholders to Take Legal Action.
Switzerland is the 36th country in terms of the ease of doing business according to the World Bank's annual report (Doing Business 2020). The main strengths of the Swiss economy include:
Disadvantages for FDI in Switzerland:
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Latest Update: March 2025