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There are very interesting software companies in Switzerland. And those companies are taking a lot of risks as well. Maybe your impression stems from the fact t

by jcfrei 6y ago

There are very interesting software companies in Switzerland. And those companies are taking a lot of risks as well. Maybe your impression stems from the fact that it's not a very visible ecosystem and the funding is obviously much smaller than in bigger economies.

atemerev 6y ago
These companies were not financed by venture capital (except for some cryptocurrency companies, which are popular here indeed). Also, some of the software companies were moved here for tax reasons, but they were founded elsewhere.
- jcfrei 6y ago
  Don't know why you are talking in absolutes here. There's quite a bit of venture funding outside of the cryptocurrency space. Crunchbase shows $2B total in funding for Zurich alone (https://www.crunchbase.com/hub/zurich-startups https://www.crunchbase.com/hub/zurich-startups) - don't know how that compares internationally but it's definitely something rather than nothing.
  - nextos 6y ago
    Yes, and there's also a great biotech startup & VC ecosystem.
- jokethrowaway 6y ago
  That's an interesting claim! Is there a tax efficient way to structure a tech company in Switzerland? Taxation doesn't look very good neither on the personal level (income tax / dividend tax / tax on deemed rental value of your property if you own a house!!!) nor the company one (corporate rate tax, high cost of personnel). They do have some good deductions and a lump sum income tax for foreigners relocating to Switzerland but it seems like you won't benefit from it unless your income is 7 times higher than your yearly rent (or deemed property rental value if you own). Is there maybe some possible legal fiscal loophole with foreign entities?
  - jcfrei 6y ago
    The biggest advantage in Switzerland that I know of is no capital gains tax. So if you sell shares of your company you don't pay a tax on the sale.
  - corty 6y ago
    Pick the right canton. There are many, with very diverse tax codes, and in the smaller ones you even get to negotiate a bit (if you are big and important enough). But of course that will mean you have to be out in the sticks.
  - mahkeiro 6y ago
    No tax on capital gain is just the most important one for any startup... (btw you do get this tax on fictional rental value of your house, but you can deduct all loan interest which are normally higher even today with the 0.8% loan rate)

by jcfrei 6y ago

atemerev 6y ago

These companies were not financed by venture capital (except for some cryptocurrency companies, which are popular here indeed). Also, some of the software companies were moved here for tax reasons, but they were founded elsewhere.

jcfrei 6y ago
Don't know why you are talking in absolutes here. There's quite a bit of venture funding outside of the cryptocurrency space. Crunchbase shows $2B total in funding for Zurich alone (https://www.crunchbase.com/hub/zurich-startups https://www.crunchbase.com/hub/zurich-startups) - don't know how that compares internationally but it's definitely something rather than nothing.
- nextos 6y ago
  Yes, and there's also a great biotech startup & VC ecosystem.
jokethrowaway 6y ago
That's an interesting claim! Is there a tax efficient way to structure a tech company in Switzerland? Taxation doesn't look very good neither on the personal level (income tax / dividend tax / tax on deemed rental value of your property if you own a house!!!) nor the company one (corporate rate tax, high cost of personnel). They do have some good deductions and a lump sum income tax for foreigners relocating to Switzerland but it seems like you won't benefit from it unless your income is 7 times higher than your yearly rent (or deemed property rental value if you own). Is there maybe some possible legal fiscal loophole with foreign entities?
- jcfrei 6y ago
  The biggest advantage in Switzerland that I know of is no capital gains tax. So if you sell shares of your company you don't pay a tax on the sale.
- corty 6y ago
  Pick the right canton. There are many, with very diverse tax codes, and in the smaller ones you even get to negotiate a bit (if you are big and important enough). But of course that will mean you have to be out in the sticks.
- mahkeiro 6y ago
  No tax on capital gain is just the most important one for any startup... (btw you do get this tax on fictional rental value of your house, but you can deduct all loan interest which are normally higher even today with the 0.8% loan rate)