Guidance

Doing business in Switzerland: Switzerland trade and export guide

Updated 13 October 2016

This guidance was withdrawn on

Department for International Trade withdrew this publication because it was out of date.

See current information to:

© Crown copyright 2016

This publication is licensed under the terms of the Open Government Licence v3.0 except where otherwise stated. To view this licence, visit nationalarchives.gov.uk/doc/open-government-licence/version/3 or write to the Information Policy Team, The National Archives, Kew, London TW9 4DU, or email: psi@nationalarchives.gov.uk.

Where we have identified any third party copyright information you will need to obtain permission from the copyright holders concerned.

This publication is available at https://www.gov.uk/government/publications/exporting-to-switzerland/doing-business-in-switzerland-switzerland-trade-and-export-guide

1. Switzerland export overview

Switzerland is the world’s most competitive economy for the seventh consecutive year according to the World Economic Forum’s (WEF) 2015-16 Global Competitiveness Index.

Contact a Department for International Trade (DIT) Switzerland export adviser for a free consultation if you are interested in exporting to Switzerland.

Contact UK Export Finance (UKEF) about trade finance and insurance cover for UK companies. You can also check the current UKEF cover position for Switzerland.

It’s a diverse and mature economy with opportunities in all sectors.

Bilateral trade between the UK and Switzerland is worth over £31.9 billion a year.

The business links between Switzerland and the UK are extremely strong with more than 80 flights per day linking the UK with Switzerland.

Benefits for UK businesses exporting to Switzerland include:

  • favourable exchange rate
  • flight times under 2 hours
  • English widely spoken
  • multicultural market suitable for product testing
  • Europe’s highest per capita income
  • similar legal and regulatory environment

Strengths of the Swiss market include:

  • central location in Europe
  • political and financial stability
  • excellent public infrastructure
  • highly educated workforce
  • high productivity
  • innovative country with high spend on research and development (R&D) and technology
  • purchasing power amongst the world’s highest
  • reliable business, legal and regulatory environment
  • low Value Added Tax (VAT) compared to many European Union (EU) countries

2. Challenges of doing business in Switzerland

Switzerland is not a member of the EU and is not likely to join in the foreseeable future. Relations are governed by a series of bilateral agreements. Protectionist measures remain in some areas. Agriculture and recruitment services are instances, which have recently affected British companies.

Doing business in Switzerland is very similar to doing business in the UK. If your product or service is successful in the UK, there’s a good chance you’ll be successful in Switzerland.

However, there are certain unique challenges when doing business in or with Switzerland. These include:

  • EU standards are not always adopted
  • domestic rules and regulations apply
  • highly regulated market
  • difficult to ensure local legal compliance for certain industries and ‘posted workers’ (employee normally working in the UK, but temporarily working in Switzerland)
  • slow decision-making because of the need for consensus and a reluctance to take risks
  • Swiss consumers places a premium on quality

3. Growth potential

3.1 Economic growth

The economy is expected to grow by 1.4% during 2016 and continue its positive trend in 2017.

The Swiss National Bank (SNB) continues its expansive fiscal policy. The interest rate on sight deposit remains at -0.75% and the 3 month Libor target range at -1.25% to -0.25%.

Swiss core inflation remains very low. The SNB expects an inflation rate of -0.4% for 2016 and 0.3% for 2017.

Switzerland’s unemployment rate, as reported by the State Secretariat for Economic Affairs, is also expected to remain low at below 3.6%. Unemployment has decreased since January 2016 from 3.6% to 3.1% in July.

3.2 Free trade agreements

Switzerland currently has network of 28 free trade agreements with 38 partners outside the EU, including with China. The countries covered by these agreements account for 51% of Switzerland’s total trade. There are 7 more agreements in negotiation.

These free trade agreements mean that countries enter into legally binding commitments to relax access to each other’s markets for goods, services and investment.

4. UK and Switzerland trade

In 2015, total bilateral trade with the UK was worth £31.9 billion. Switzerland is the UK’s tenth largest export market and the third largest non-EU market.

Unlike other markets which have seen stability or decline, UK goods and services exports to Switzerland grew by 130% in the last 5 years.

Switzerland is the:

  • highest growth market for UK exports over the last decade after China
  • fastest growing importer of services from the UK in absolute numbers
  • UK’s fifth most important market for service exports

Top UK goods exports to Switzerland (2015):

  • chemicals, plastics and associated products
  • electronic equipment
  • machines, engines, pumps
  • medical, technical equipment
  • metals
  • pharmaceuticals
  • precious metals, precious and semi-precious stones
  • precision instruments, watches and jewellery
  • vehicles

Switzerland is the UK’s eight largest foreign direct investor, with a total stock value of £39 billion. Over the last 10 years, there has been a 126% increase in stock value.

Swiss companies provide close to 200,000 jobs in the UK. Overall, it is estimated that around 2,000 Swiss companies operate in the country. .

5. Opportunities for UK businesses in Switzerland

Department for International Trade (DIT) provides free international export sales leads from its worldwide network. Search for export opportunities.

5.1 Aid funded business opportunities

Aid funded business offers you export opportunities from aid agency funded projects.

24 United Nations (UN) organisations are headquartered in Geneva making it a significant centre for UN procurement of products and services. Procurement by UN offices worldwide in 2015 was worth USD 17.6 billion (£13.5 billion). The UK share was USD 514 million (£393 million) making us the ninth largest supplier of goods and services into the UN system.

The main organisations in Geneva in terms of procurement are:

The UN Global Marketplace (UNGM) provides access to UN tenders and statistics on types and value of procurement carried out by each UN organisation. You must register here to be a potential supplier to the UN system.

Companies interested in doing business with the UN should:

  • have relevant products or services
  • be established for at least 3 years (if bidding for large contracts/international tenders)
  • have some export experience

In addition both of the International Red Cross organisations are headquartered in Geneva and have many similar requirements to the UN:

In Geneva there is a particular focus on health, emergency relief and crisis recovery. Typical products and services required include:

  • medical equipment and supplies
  • pharmaceuticals
  • generators
  • vehicles
  • basic tools
  • communications equipment
  • water and sanitation supplies
  • shelter and domestic items
  • specialised consultancies
  • specialised training (to be delivered in French and English)
  • inspection services
  • freight forwarding

This is not an exhaustive list as requirements vary according to the UN’s response to global events.

Liaison with the United Nations organisations in Rome is handled by our specialist in Geneva. The Rome agencies focus specifically on the food and agriculture sector:

Department for International Trade (DIT)’s Aid Funded Business Service helps you identify opportunities to supply products and services to the international aid agencies.

Contact Trade Attache eleanor.baha@mobile.trade.gov.uk for more information on aid funded business opportunities in Geneva and Rome.

5.2 Biotechnology and pharmaceuticals

Switzerland has a leading position in the global pharmaceutical and biotech industries. The city of Basel is a European centre of ‘big pharma’, and the country has a strong biotech industry. ‘Health Valley’ (biotech cluster in the French-speaking part of Switzerland) is the fastest growing cluster in the world and third European cluster after Cambridge and Oxford.

Switzerland’s biotechnology sector has:

  • 219 biotech companies
  • 60 biotech suppliers
  • a turnover of CHF 5.133 billion (2015)

Switzerland is also an advanced pharmaceutical market with:

  • per-capita expenditure on drugs among the highest in the world
  • consumption centred on patented pharmaceuticals
  • a ready market for cutting-edge therapies

High levels of out of-pocket expenditure have resulted in the development of a mature and competitive consumer health sector.

Switzerland has become one of the global leaders in the development and production of biopharmaceuticals, vaccines and diagnostics (red biotechnology). 85% of all Swiss biotech companies play an active role in this field. There is growth potential in:

  • agricultural (green) biotechnology
  • industrial (white) biotechnology
  • bioinformatics
  • human life sciences (new compounds and molecules, drug delivery technology)
  • nutraceuticals
  • Contract Research Organisations (CRO)
  • instrumentation, systems and equipment

Swiss pharmaceutical companies are also interested in partnerships with UK universities and research centres / start-ups in innovative therapeutic areas (gene therapy, liquid biopsy, etc).

Contact Trade Officer marie.gow@mobile.trade.gov.uk for more information on biotech and pharmaceuticals business opportunities.

5.3 Healthcare and medtech

At CHF71.2 billion Switzerland has the highest healthcare expenditure in the world after the US and Norway (10.9% of GDP). It also has the third highest life expectancy in the world.

Private health insurance is compulsory in Switzerland and Swiss people have easy access to the latest products and technologies.

Switzerland is a good export market in the healthcare field, especially for British companies which manufacture:

  • innovative products in the pharmaceutical sector
  • innovative products in the consumer health sector
  • medical devices
  • innovative products which fulfil World Health Organisation (WHO) requirements

Contact Trade Officer marie.gow@mobile.trade.gov.uk for more information on healthcare business opportunities.

5.4 Cyber security

The Reporting and Analysis Centre for Information Assurance (MELANI) coordinates cyber security issues in Switzerland.

A ‘National strategy for Switzerland’s protection against cyber risks’ was created to address the threat of cybercrime. This strategy was finalised in 2012 and provides a framework to address cyber risks more efficiently.

Switzerland is particularly vulnerable to cyber attacks because of its high-tech infrastructure and financial services sector. The potential risks for banks, large companies, local authorities, hospitals, energy and water infrastructures, rail and air transport are increasing.

Because of these risks, federal experts have strengthened their crisis management plans and are asking for stakeholders to:

  • review their procedures with a focus on cyber security
  • focus on protection of vulnerable high-tech infrastructures and commercial assets
  • create an in-depth Public Private Partnership (PPP)
  • find efficient, feasible and tailor-made solutions

The result is a growing market for cyber security solutions in critical infrastructure protection and for commercial sectors.

Opportunities for potential UK suppliers within the Swiss cyber security market are many and varied. They include products and services providing protection against:

  • theft of information
  • unwanted external agents taking control of computer systems
  • destruction of computer systems

The Export Control Organisation (ECO) issues licences for the export of strategic goods. Check your goods are meeting the legal requirements for export.

Contact Trade Officer Stephanie.Gruering@mobile.trade.gov.uk for more information on cyber security business opportunities.

5.5 Defence and security

The Swiss security and defence market has grown at 6 to 8% annually over the last decade.

The Swiss defence department, Federal Department of Defence, Civil Protection and Sport DDPS, offers opportunities in the areas of:

  • telecommunications
  • personal equipment and clothing
  • armoured personnel carriers
  • maintenance and spare parts
  • emergency response
  • airports
  • unlawful migration
  • drug trafficking

The Swiss are becoming more security conscious and are investing significantly in individual alarms. Complex, professionally installed systems are preferred. Major supermarkets and department stores are now offering a growing selection of security devices and systems.

After years of almost total domination by local companies the market is opening up to new products and suppliers. Professional security systems are becoming the standard with the majority of medium and large companies.

Swiss law has recently been adapted to allow more CCTV camera installations to maintain public order.

Additionally, Swiss rail, road and public safety operators are constantly updating their emergency response methods.

The Export Control Organisation (ECO) issues licences for the export of strategic goods. Check your goods are meeting the legal requirements for export.

Contact Trade Officer Stephanie.Gruering@mobile.trade.gov.uk for more information on defence and security business opportunities.

5.6 Corporate education

Switzerland is home to many multinational companies and international organisations including:

They all use English as their business language and have significant training needs.

Competition from both local and international companies is very strong. UK companies working in specialised sectors or topics are more likely to succeed.

It is an advantage if training courses can be delivered in French and/or German, in addition to English.

Previous experience in working with international organisations, like the UN, helps to start negotiation with other organisations.

Contact Trade Officer marie.gow@mobile.trade.gov.uk for more information on corporate education business opportunities.

5.7 Large research centres

CERN in Geneva is one of the world’s most important centres for fundamental research in physics. It’s a centre of excellence in engineering, offering business opportunities in the region of £160 million per year.

The UK is one of the member states that make CERN’s scientific achievements possible. CERN tries to achieve a balanced industrial return by doing business with firms in all the member states. Business is won through competitive bidding by companies in CERN’s Member States. All CERN bidding documents are available in English.

CERN works with a diverse range of firms of all sizes. It requires a constant stream of supplies and services. These include:

  • civil engineering
  • power distribution
  • superconducting magnets
  • cryogenics
  • ultra-high vacuum
  • electronics
  • mechanical engineering
  • radiofrequency equipment
  • computing infrastructure
  • site maintenance

Contact Trade Attache eleanor.baha@mobile.trade.gov.uk for more information on large research centre business opportunities.

5.8 Food and drink

Switzerland was ranked the fourth largest per capita food importer in the world in 2015. It’s a small, but wealthy market. People are interested in high quality premium products that are unlike those already available on the market.

Total food and beverage imports from the UK into Switzerland were CHF 402.3 million in 2015.

The Swiss retail market is dominated by 2 major retailers, who together share about 75% of the market. A large portion of the rest of the market is made up of high quality retail chains.

Opportunities in Switzerland’s food and drink sector include:

  • ‘free from’ foods / healthier alternatives to existing product lines (no artificial colours and low sugar)
  • ethnic food
  • premium cuts of lamb and beef
  • seafood
  • alcoholic and innovative non-alcoholic beverages

Contact Trade Officer claire.parsons@mobile.trade.gov.uk for more information on food and drink opportunities.

5.9 Technology and innovation

In 2015 Switzerland topped the Global Innovation Index. Its capacity for innovation influences all areas of its economy, notably those driven by technological developments. This, together with the pressure to digitize, opens the door to multiple business opportunities for UK companies.

Sectors investing most in Information and Communications Technology (ICT) are media, banks, insurance companies, corporate services, research and development, printing and the public sector.

Potential opportunities in ICT include:

  • Swiss outsourcing of IT services
  • financial technology (FinTech) services
  • insurance technology (InsurTech) services
  • legal technology (LegalTech) services
  • secure storage facilities for ‘big data’ in Switzerland where 10% growth per year is expected
  • cloud services market as anticipated to grow from £92 million in 2012 to £165 million in 2017
  • mobile developments such as mobile end-devices and apps
  • social computing
  • process optimisation
  • data security
  • data processing
  • telecommunications equipment
  • electronics

Other growth areas are:

  • innovative business models for energy companies
  • transport and logistics

Contact Senior Trade Officer anna.faber@mobile.trade.gov.uk for more information on technology and innovation opportunities.

5.10 Financial, professional and business services

Switzerland is a world renowned financial centre with 2 main clusters. Zurich is the main centre for retail banking and insurance. Geneva is the centre of private banking and wealth management. The 275 banks in Switzerland generate turnover of £3,042 billion and employ 104,000 people.

Regulatory requirements imposed on banks have steadily increased resulting in the departure of several international banks and major restructuring of others.

Opportunities for UK-registered companies are mainly in the financial technologies and business services sectors including:

  • consultancy
  • communication
  • marketing
  • legal services
  • Human Resource (HR) services

Please note, however, that the competition, both local and international, is very high for these services.

Contact Senior Trade Officer anna.faber@mobile.trade.gov.uk (for the German-speaking market) or marie.gow@mobile.trade.gov.uk(for the French-speaking market) for more information on financial, professional and business services’ opportunities.

5.11 Retail and luxury

Following the decision taken by the Swiss National Bank to remove the CHF/EUR cap at the beginning of 2015, retail prices were lowered in order for local retailers to remain competitive with neighbouring EUR countries. In the meantime, however, this trend has weakened and Credit Suisse analysts expect 2016 to demonstrate more positive retail sales and a reduced fall in retail prices.

Switzerland is a relatively small market with corresponding sales volumes. Once established, however, business relations are very pleasant, long-lasting and marked by a personal notetouch. The market’s multicultural character makes it particularly suitable for product-testing.

With on-line trade in goods growing by about 10% year-on-year, e-commerce has opened an increasingly viable sales channel to add to the traditional retail model.

Opportunities in the Swiss retail industry – local buyers and agents value:

  • brand reputation
  • originality
  • quality and value for money
  • reliability
  • added value – keywords such as sustainable, ethical, fair-trade, organic, recycled, upcycled, cruelty-free, environmentally-friendly, not tested on animals, vegan
  • relationship-building and personal contact
  • ethically fair production and a balance between price, production process and quality

Contact Trade Officer daniela.baumgartner@mobile.trade.gov.uk for more information on retail and luxury opportunities.

5.12 Chemicals

Given the premium Switzerland places on research and development, innovative UK businesses and companies with a niche chemical product will have a competitive edge.

Also, due to its geographical characteristics and the comparative lack of natural resources, Switzerland has to import virtually all the raw materials used in chemical-pharmaceutical production processes.

More than 80% of these imports are from European countries. In Switzerland, the focus is largely on the composition of substances rather than on synthesis, which mainly takes place in neighbouring countries.

The Swiss chemical and pharmaceutical industry operates nearly exclusively in specialty areas; around 90 percent of the Swiss chemical industry’s overall product portfolio are specialities. With more than 30,000 different products, it is exceptionally differentiated.

Opportunities in the Swiss chemical-pharmaceutical industry may arise where a UK business provides any of the following:

  • highly innovative or niche products
  • high-value ingredients – products or substances in the speciality area, such as pharma intermediates, agrochemical active ingredients or agrochemical intermediates
  • sought-after molecules made from renewable resources and with very specific, extraordinary characteristics
  • ICT solutions
  • vitamins / flavours / fragrances
  • crop protection agents
  • speciality and fine chemicals

The following business types will be particularly interesting to Swiss buyers:

  • businesses that act as specialised sub-contractors and/or service providers
  • multi-purpose producers who are capable of reacting to changing needs; especially companies offering the added value of environmental consideration and/or sustainability
  • chemical building blocks, technical and research services, contract manufacturing options, sampling and analysis services, waste treatment technologies and other related business solutions

Contact Trade Officer daniela.baumgartner@mobile.trade.gov.uk for more information on chemicals opportunities.

6. Start-up considerations

There are many ways to develop your business in Switzerland. These include:

  • setting up a local office
  • working with international distributors or agents
  • working with wholesalers acting as importers
  • using trading companies that operate, for example, networks of bonded warehouses
  • using direct sales thorough direct marketing, mail order, telemarketing or the most popular forms teleshopping and internet sales

The main forms of business entity available in Switzerland are:

  • corporation
  • limited liability company
  • general partnership
  • simple partnership
  • cooperative

Instead of incorporating a company in Switzerland a business can be operated through a branch of a foreign company. The legal form of a ‘trust’ doesn’t exist in Swiss civil law.

Setting up a business in Switzerland requires the support of banks, consulting firms, trustees and attorneys specialising in company law.

Appointing an agent has several advantages including:

  • having a better understanding of the market
  • knowing its rules and regulations
  • representing you in your absence

You should check contracts carefully as agents can work for several companies.

Franchising in Switzerland is not very profitable due to limited market size and high operational costs.

Contact the Department for International Trade (DIT) in Switzerland to help find tax and legal advisers before entering into agreements or setting up in Switzerland.

The federal government of Switzerland legislates in areas such as trade and commerce, banking, foreign affairs, defence and taxation. Other areas of legislation are dealt with by individual cantons.

Contact the Department for International Trade (DIT) in Switzerland to help find legal advisers for official transactions in Switzerland.

7.1 Standards and technical regulations

Switzerland is not a member of the EU, but a member of the European Free Trade Association (EFTA). To facilitate free trade with the EU, Swiss legislation is adapted to EU law in several areas.

Switzerland has different requirements related to product safety. Suppliers and manufacturers have an obligation to make sure products are safe under Swiss regulations. Products must:

  • meet relevant safety standards
  • have clear instructions for proper use
  • include warnings against possible misuse

CE marking isn’t required in Switzerland, unlike in the EU.

If you don’t comply with mandatory standards, you risk action being taken against you under the Federal Act on Product Safety.

Find out more about product regulations in Switzerland.

You should adapt your documentation to one or more of Switzerland’s 4 main languages (German, French, Italian and Romansch).

Product labelling needs to comply with Swiss law. However, the required information and form depend on the product and the position of the supplier in the supply chain. Department for International Trade (DIT) Switzerland can advise you.

7.2 Intellectual property

Trademarks, designs, patents and copyright are the principal forms of intellectual property protection available under Swiss law. They are all governed by legislation and you should register your intellectual property in Switzerland where appropriate.

Swiss law also provides protection against a person passing off goods or services as those of another, as well as protection for confidential information or trade secrets.

The Swiss Federal Institute of Intellectual Property (IPI) is responsible for intellectual property protection.

8. Tax and customs considerations

8.1 Value Added Tax (VAT)

The destination country principle applies to VAT, known as Mehrwertsteuer (MwSt), Taxe sur la valeur ajoutée (TVA) or Imposta sul valore aggiunto (IVA) in Switzerland. Goods to be exported are exempt from local tax in their country of origin. They are subject to tax at their destination - in effect an import tax.

In principle, VAT is levied on all imports of goods, even on consignments with ‘no value’. The normal tax rate is 8%, which is the same rate applicable for domestic purchases. Some basic necessities such as food is subject to the reduced rate of 2.5%. Overnight stays at a hotel (incl. breakfast) are taxed at a special rate of 3.8%.

8.2 Company tax

Federal taxes are charged at a flat rate, while cantonal tax rates vary by location and sometimes by level of capital or profit. Direct federal taxes are levied on after-tax profits.

8.3 Income tax

Federal taxes

Direct federal tax is levied on the income of private individuals. It is assessed and collected by the cantons on behalf of the Swiss Confederation.

Cantonal taxes

The cantons are free to decide on their own tax systems and tax rates. They have the power to charge any tax that the Swiss Confederation does not claim exclusive rights over. This means that the tax laws and tax rates vary widely from canton to canton.

Communal taxes

Communal tax systems are regulated by cantonal tax legislation. However, communes set their own tax rates.

8.4 Customs

The Swiss Customs Administration regulates all goods imported into Switzerland. Customs duty and VAT Mehrwertsteuer (MwSt), Taxe sur la valeur ajoutée (TVA), Imposta sul valore aggiunto (IVA) may apply to goods entering Switzerland.

However, tax rates depend upon a number of factors, including the type of goods and services and the country of origin. All imported goods and services must be cleared with customs.

You can get export tariffs numbers and additional information from the Swiss Customs Administration.

Find more information on customs and duties on goods entering Switzerland.

9. Business behaviour

Switzerland has 4 main languages (German, French, Italian and Romansch) so check which language is appropriate prior to any meeting or negotiations.

Business meetings are formal. Surnames should be used throughout a meeting unless suggested otherwise.

10. Entry requirements

If you are a British citizen or British subject with right of abode in the United Kingdom, you don’t need a visa to enter Switzerland. Your passport should be valid for the proposed duration of your stay. No additional period of validity beyond this is required.

You can check if you’re a British citizen on GOV.UK.

Other British passport holders should check entry requirements with the nearest Swiss diplomatic mission.

10.1 Working in Switzerland

Switzerland is outside the EU and there are a number of rules and registration processes associated with deploying your employees in Switzerland.

The Federal Office for Migration provides the most up to date information on employee residency rules.

10.2 Travel advice

If you’re travelling to Switzerland for business, check the travel advice beforehand.

11. Contacts

Contact the Department for International Trade (DIT) team in Switzerland for more information and advice on opportunities for doing business in Switzerland.

Back to top