Banking in Switzerland
In recent years, Switzerland has become quite a popular destination for investment from people worldwide.
The complete privacy of investor information and the tax laws that favor the investor. The country is also known for having a very stable economy reducing the risk factor and the fact that Switzerland has one of the lowest corruption rates in the world.
These reasons and more have made Switzerland a leader in the field of private banking and asset management. In fact, UBS and Credit Suisse are among the world’s leading banks, and both are Swiss. Many international banks and investment groups have also opened their branches in the country. Most of these Swiss banks are focusing entirely on wealth management and investors.
But before you try to open a bank account in the country, let us tell you that it might be a little more difficult for foreigners than natives due to the strict laws and the Swiss banking secrecy. Though no banks usually limit foreign investment, they do have a very strict process of verifying customers and ensuring that they do not come from illegal activities.
So, you will most probably be asked to prove your identity and address, plus provide personal details and employment history, amongst other information. They also have strict limits for the minimum investment you need to make to open a bank account in these banks. While most private banks will expect a sum of at least CHF 250,000 to be invested, a few also have a minimum requirement of CHF 50,000.
When you have chosen to open your account, you can contact them and ask for an application package.
This will include the application form and the details of all the documentation you need to provide. These are almost the same for both resident and non-resident foreigners. Also, make sure you discuss the predicted and actual return rates with the bank beforehand, so there is no ambiguity later on.
One important thing to remember is that investing in Switzerland is not tax exempted. You will be required to pay a withholding tax of 35 percent if the interest accrued in a year is more than CHF 200.
For more information on banking and investment in Switzerland, please fill out the form below and we will contact you as soon as possible.