Switzerland can be a great place to invest, with a stable economy and strong business culture. Find out more with our guide.
There are many different forms of investment available in Switzerland, ranging from property to stocks and shares. The wealthy country is also a global financial hub, home to a flurry of billionaires. However, before you invest in Switzerland you will need to do your research, as you are likely to find that structures and tax implications differ from those in your home country.
This guide to investing in Switzerland includes advice on the following:
Investment in Switzerland
Switzerland has a strong investment and business culture, but choosing the right way to invest your money is more complicated than it once was. This is because traditional forms of investment in Switzerland have become less attractive. For example, savings accounts have fallen victim to low or even negative interest rates, and high house prices mean buy-to-let investment requires more careful planning than before.
Apart from changes in the macro-economic picture, there are also changes in the investment culture in Switzerland. The country’s largest banks are looking to improve and promote their ethical credentials. And investors are taking greater note of sustainability before parting with their cash. In fact, in 2020, Switzerland saw double-digit growth in sustainability investing.
With that said, let’s run through your options.
Savings account investments in Switzerland
Savings accounts are available from national and regional banks in Switzerland. Historically, savings accounts allowed you to gain interest on your money, but they’re not as attractive as they once were.
Most banks in Switzerland no longer pay interest on money held in instant-access savings accounts. Data from the comparison site Moneyland shows that as of October 2021, the vast majority of interest-paying savings accounts only offer around 0.1%. Slightly higher rates up to 0.25% may be available on some junior and youth accounts. Some banks offer rates of up to 1%, but only if you lock your money up for 10 years. The downside to fixed-term accounts is that you’ll face a financial penalty if you withdraw the cash early.
It’s no longer attractive to keep large sums of money in a standard bank account or savings account. Indeed, some savers with large deposits may even find that they have to pay interest to their provider. In January 2021, UBS announced it would charge interest to clients with balances of more than CHF 250,000.
Pensions investments in Switzerland
The Swiss pension system is well-regarded, ranking 23 out of 70 countries in a 2020 Allianz report.
There are three pillars to the Swiss …….