Switzerland is a stable, peaceful and prosperous country, with modern market economy having low unemployment and highly skilled labor force.
Among the main sectors of Swiss economy are production of chemicals, watches, textiles, machinery, and also tourism, banking, and insurance.
Swiss neutrality and national sovereignty have fostered a stable environment where the banking sector was able to develop.
|Population (2014)||8 139 631 (+0.01%)|
|EU Status||not a member|
|National Currency||CHF (Swiss franc)|
|Exchange Rate (2015-07-02)||1 EUR = 1.0507 CHF|
|Nominal GDP (2013)||490.0 bln EUR (0.00%)|
|Nominal GDP per Capita (2013)||61 100 EUR (-0.01%)|
|Real GDP Growth (2013)||2.0 % (2012: 1.0 %)|
|CPI, MoM (Apr 2015)||-0.2 % (Mar 2015: 0.5 %)|
|CPI, YoY (Apr 2015)||-0.8 % (Mar 2015: -0.5 %)|
|CPI, Year Average (2014)||0.0 % (2013: 0.1 %)|
|Unemployment Rate (2014)||3.2 % (2013: 3.2 %)|
|Credit Ratings (as of Jun 2015)|
|Fitch||AAA||highest credit quality, outlook stable|
|Moody's||Aaa||prime, outlook stable|
|Withholding Tax||0.0 - 35.0%|
|Double Taxation Agreements||101 signed agreements|
|Exchange on Request||6 signed agreements|
|Automatic Exchange||starts in September 2018|
|Financial Market Development||5.300 (max 7.000)||rank: 11th out of 144 countries|
|Banks' Soundness||5.900 (max 7.000)||rank: 21st out of 144 countries|
|Banking Industry Country Risk||1||(1 - lowest risk, 10 - highest risk)|
|Deposit Guarantee Scheme|
|Maximum Protected Amount||100 000 CHF|
|Country Ceiling for Deposits|
|Local Currency (Swiss franc)||Aaa||prime|
|Banking Sector Structure|
|Number of Banks||287|
|Recent Changes (2013)||new banks: 1, closed banks: 16|
|Consolidated Assets (2013)||2 321 bln EUR (+0.06%)|
|UBS AG||HSBC Private Bank (Suisse) SA|
|Credit Suisse AG||Bank Julius Bär & Co. AG|
|Raiffeisen Group||Mortgage bond bank of the Swiss mortgage institutions|
|List of Banks in Switzerland|
During the last 11 years EURCHF exchange rate was within the range 1.0341 - 1.6762, reaching its maximum in Oct 2007 and falling to its minimum in May 2015.
According to Eurostat, nominal GDP of Switzerland in 2013 was 490.0 bln EUR.
Switzerland outperforms the European Union in terms of real GDP growth with the average annual differential coming to 0.2% over the past 10 years (2003 - 2013). In 2013 real GDP growth was 2.0% which was above the Euro Area average (-0.5%) and above the European Union average (0.1%). Real GDP growth in 2014 - 2020 are IMF's estimates.
In 2013, nominal GDP per capita in Switzerland was 61 100 EUR.
Switzerland has an above-average level of wealth in terms of per-capita GDP at purchasing power parity (PPP); this economic welfare indicator has, on average, exceeded that of the European Union by 59.8% over the past 10 years (2003 - 2013). GDP per capita at PPP in 2014 - 2020 are IMF's estimates.
According to Eurostat, inflation rate in Switzerland in 2014 expressed as annual percentages of average consumer prices was 0.0% which was below the Euro Area average (0.4%) and below the European Union average (0.6%). Inflation rates in 2015 - 2020 are IMF's estimates.
Withholding taxes are imposed at source of income and are often applied to dividends, interest, royalties, rent and similar payments. The rates of withholding tax are often reduced by double taxation agreements.
Withholding tax rates applied on payments of interest and dividends in Switzerland are shown in Table 1.
|Natural person, resident||35.0||35.0|
|Natural person, non-resident||35.0||35.0|
Double Taxation Agreement (DTA) is an agreement between two or more countries for the avoidance of double taxation.
Switzerland signed DTAs which already came info force with the following jurisdictions (for agreements which came into force after 01 January 2013 the date of coming into force is given in brackets):
There are also several agreements between Switzerland and other jurisdictions which were signed but haven't yet come into force (for agreements signed after after 01 January 2013 of signing the agreement is given in brackets):
There are 3 ways for jusrisdictions to exchange information on tax matters:
Tax Information Exchange Agreements (TIEAs) enable exchange of information on request relating to a specific tax investigation, either criminal or civil.
There are also several agreements between Switzerland and other jurisdictions which was signed but haven't yet come into force (for agreements signed after 01 January 2013 of signing the agreement is given in brackets):
Automatic information exchange allows jurisdictions to exchange information automatically, without having a specific tax investigation.
Switzerland didn't sign the automatic information exchange agreement but made a commitment to start the automatic information exchange in September 2018.
According to World Economic Forum's Global Competitiveness Report 2014-2015, financial market development in Switzerland is scored 5.300 out of maximum 7.000 and ranked 11th out of 144 analysed economies. Soundness of banks is scored 5.900 bringing Switzerland into the 21st place, trustworthiness and confidence of financial market is scored 5.700 (11th place).
Banking Industry Country Risk Assessment (BICRA) is a methodology designed by Standard&Poor's "to evaluate and compare global banking systems". A BICRA is scored on a scale from 1 to 10, ranging from the lowest-risk banking systems (group 1) to the highest-risk (group 10). The BICRA methodology has two main analytical components: "economic risk" and "industry risk". Each of the components is then further divided into 3 "factors" that result in an economic and industry risk score for each country.
Switzerland is included into group '1' with economic risk scored '1' and industry risk scored '2'.
|Economic resilience||very low|
|Economic imbalances||very low|
|Credit risk in economy||low|
|Systemwide funding||very low|
|Government support assessment||supportive|
Deposit Guarantee Schemes compensate certain deposits held by depositors of a bank that becomes unable to meet its obligations.
From a depositor's point of view it is important to know:
All these details about deposit guarantee scheme in Switzerland are summarised in Table 3.
|Scheme Participants||all credit institutions operating in Switzerland (including branches of foreign banks), branches of Swiss banks abroad|
|Eligible Depositors||private individuals, commercial enterprises and public-sector offices|
|Covered Accounts||credit balances (e.g. personal accounts, savings accounts, investment accounts, salary accounts, numbered accounts, deposit accounts and current accounts)|
|Maximum Protected Amount||100 000 CHF|
|Paid In Currency||CHF|
Table 3. Deposit guarantee scheme in Switzerland.
Deposit Guarantee Schemes in Europe
Moody's country ceilings for deposits specify the highest rating that can be assigned to local- or foreign- currency denominated deposit obligations of a bank or other deposit taking institution domiciled within that country.
Local currency (Swiss franc) deposit ceiling for Switzerland is set to Aaa (prime), foreign currency deposit ceiling is Aaa (prime).
Currently there are 287 credit institutions operating in Switzerland.
Recent structural changes (2011 - 2013) of the banking sector of Switzerland are summarised in Table 4.
|Number of Opened Banks||2||2||1|
|Number of Closed Banks||0||17||16|
Table 4. Recent structural changes in the banking sector of Switzerland.
All the credit institutions operating in Switzerland can be classified into several categories. Table 5 summarises the number of banks in each category.
|Category||Number of Banks|
|Branches of foreign banks||26|
|Institutions with a special field of business||6|
|Other banks / Banks that specialise in stock exchange, securities and asset management business||47|
|Other banks / Foreign-controlled banks||91|
|Other banks / Other banking institutions||14|
|Private bankers / Private bankers who do not actively seek deposits from the public||11|
|Regional banks and savings banks / Other regional banks and savings banks||27|
|Regional banks and savings banks / RBA Holding banks||37|
The list of the most recently opened banks in Switzerland is provided in Table 6.
|PostFinance AG||January 2013|
|Aquila & Co. AG||January 2012|
|Quilvest (Switzerland) Ltd.||January 2012|
|J.P. Morgan Securities plc, London, Zweigniederlassung Zürich||January 2011|
|Neue Helvetische Bank AG||January 2011|
Table 6. The most recently opened banks in Switzerland.