Switzerland is losing its attractiveness for companies (cross-border guide)

Context

In brief

• 70% of CEOs see a decline in Switzerland's attractiveness
• Criticisms: regulation, taxation, infrastructure
• Multinationals: 6% of businesses, 42% of GDP

Key facts

• What: Decline in Switzerland's economic attractiveness
• When: Study published today
• Where: Zurich
• Who: McKinsey and Swiss-American Chamber of Commerce
• Amount: 70% of CEOs, 42% of GDP

Switzerland is losing its appeal to companies. Seven out of ten CEOs see a deterioration compared to international competition. Regulation, taxation, and infrastructure are weighing heavily.

ZURICH - Seven out of ten business leaders believe that the Swiss economic hub is losing its advantages compared to international competition. This is according to a study published today by the consulting firm McKinsey and the Swiss-American Chamber of Commerce. According to the report, the Confederation remains the leading European hub for research and development, but compared to the past, it attracts fewer global company headquarters and fewer international executives. 70% of the CEOs surveyed consider Switzerland's international attractiveness to be declining.

Reported Criticisms

Among the reported criticisms are the lengthening of approval procedures for investments in projects and work permits for foreign talent, cited by 70% of respondents, the introduction of the OECD minimum tax (65%), and infrastructure bottlenecks (60%). Managers also mention geopolitical tensions, new trade barriers, uncertainty in relations with the European Union, and the strength of the franc.

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Operational details

Implications for Frontiersmen

The lengthening of investment approval procedures and work permits for foreign talent could affect companies' ability to attract and retain qualified personnel, including border workers. This could lead to more competition for jobs and a possible increase in bureaucracy for cross-border workers.

Approval Procedures

70% of respondents reported a lengthening of investment approval procedures and work permits for foreign talent. This could mean longer times for obtaining work permits, affecting the mobility of cross-border workers.

OECD Minimum Tax

The introduction of the OECD minimum tax, reported by 65% of respondents, could have tax implications for companies and workers. This could affect Switzerland's tax competitiveness compared to other countries.

Infrastructure

Infrastructure bottlenecks, reported by 60% of respondents, could affect worker mobility and company logistics. This could lead to delays and additional costs for companies operating in Switzerland.

Useful tools to protect your net income

To reduce FX leakage, compare CHF-EUR exchange options and banks for cross-border workers.

Key points

Actions to Take

For border workers working in Switzerland, it is important to be aware of the implications of this drop in attractiveness. Here are some actions that can be taken:

# Monitor Approval Procedures

Border workers should closely monitor the approval procedures for investments and work permits. This could include consulting with lawyers specialising in labour and immigration law.

Planning Taxation

Border workers should plan their taxation so that they are prepared for any tax changes, such as the introduction of the OECD minimum tax. This could include consulting tax advisors.

Use Available Tools

To deepen the situation and find practical solutions, you can use the following tools:

• Calcolatore stipendio
• Comparatore CHF/EUR
• Simulatore busta paga

These tools can help border workers better understand the financial and tax implications of working in Switzerland.

Source: tio.ch