Few people in Russia tend to associate Switzerland with business or even consider it to be a convenient place to do business, despite the fact that the financial sector is so closely tied to business dealings. There’s no arguing the fact that Switzerland has long been recognised as the world’s leading financial centre. Every Swiss canton and half-canton has offices that deal directly with the canton’s economic development, promoting their respective market brands and attractive investment conditions.
Some cantons pool their efforts, which results in joint ventures representing the interests of several cantons at once. The Greater Zurich Area is an excellent example of this type of joint venture as it includes three components; the business region around Zurich – Switzerland’s economic and financial centre from which it draws its name – an organisation as well as a foundation.
The area covers eight Swiss cantons – Aargau, Glarus, Grisons, Schaffhausen, Schwyz, Solothurn, Zug and Zurich – including the cities of Zurich and Winterthur as well as several businesses. Today, the Greater Zurich Area has already established itself as one of the most interesting places for business in Europe, but also appeals to investors worldwide. One third of the world’s major banks are headquartered there and the region is enjoying an insurance market boom as well. So, why is it all happening there?
INFRASTRUCTURE The Greater Zurich Area spans about 15,000 sq km – which represents more than a third of the country's surface area – and includes almost half the national population (3.6 million people), making it one of the most important economic regions in Switzerland. 160,000 companies are based in the area, which is located just a few minutes’ drive from Zurich Airport and no more than an hour’s drive from any of the member cantons’ administrative centers.
Russians often find it hard to believe the advantage Swiss public transport offers and usually get into a mess driving rented cars. They exceed speed limits, get lost in narrow city streets and gape at Swiss pedestrians who cross the streets at designated places, completely oblivious to traffic. One-day passes valid on all types of municipal transportation are available in most major Swiss cities, including Zurich. Although it is not in the centre of Switzerland, the Greater Zurich Area is conveniently located with regularly scheduled high-speed express trains to Germany, France and Italy. The trip to Geneva or Lugano takes less than three hours by train; it takes a bit longer by car.
In mid-December 2008, Switzerland actively joined the Schengen Agreement, meaning that people aren’t checked at national borders and the number of individual visas for traveling around Europe has dropped to one. There are practically no obstacles to the free movement of goods either as Swiss legislation now conforms to European Union norms.
Information on traffic routes and timetables, legal developments and the country's constitution is available on the Internet. Over 56% of Swiss citizens have easy Internet access, making it Europe’s leading Internet user. No other country in the world invests in developing telecommunications as much as Switzerland. Practically every residential and office building in the Greater Zurich Area has broadband Internet access, aside from those in some small resort towns that are becoming increasingly telecommunication- friendly every year. The area takes pride in the fact that Google, IBM and Microsoft have established central offices in Greater Zurich.
QUALITY OF LIFE Switzerland is the world leader in infrastructure development (transportation, telecommunications, utilities, health, education, etc.), and Zurich rightfully holds one of the leading standard of living rankings. Zurich placed first for a long time, but it recently ceded its topranked position to Vienna. Surveys take into account dozens of factors including political, economic and social conditions, the environment, personal safety, health, public transport and other services.
SECURITY Personal liberty and security are basic and universally recognized values for everyone in Switzerland. Four year old children walk to kindergarten on their own, prominent businessmen and politicians don’t need to worry about security when using public transport, CEOs and bankers do not take any particular security measures either. The roads are only blocked for large events, which are always announced well in advance.
Switzerland’s last nationwide strike in Zurich was organised by left wing parties in the autumn of 1918. Blood was shed but the strikers’ goals were achieved, particularly the transition to a 48-hour working week (which has since been further reduced to about 41 hours).
The Swiss are famous for their diligence and foreign professionals employed by local companies have to keep their noses to the grindstone as well. However, high salaries are the reward for working hard in Switzerland. Over the past five years, Switzerland’s unemployment rate has steadily been declining, making it the lowest in Europe despite the current financial and economic crisis, whereas the unemployed enjoy a very high level of social protection. In short, Zurich and the Greater Zurich Area have become increasingly attractive locations for foreign professionals.
UNIVERSITIES Cutting-edge technologies are bolstered on a national level in Switzerland and are generated by high-tech companies, which prefer to be located near universities. The Swiss Federal Institute of Technology (ETH Zurich) is one of the best universities in continental Europe. Over the past 15 years, six scientists from ETH Zurich received the Nobel Prize in chemistry, physics and medicine. Career opportunities abound with a CV citing jobs at Zurich or Aargau Research Centers (Paul Scherrer Institute, PSI).
TAXES Switzerland’s economic policy is aimed at promoting market relations and private business. Economic liberty, the right to private property, freedom of association and competition are all guaranteed by the country’s constitution. The authorities generally do not interfere in economic matters; companies enjoy entrepreneurial freedom and cantonal governments are autonomous in many areas, including taxation. Income and corporate taxes in Switzerland are lower than in most European countries, varying between 11% and 29% depending on the canton. VAT is only 7.6%. Some of the companies operating in the Greater Zurich Area are granted special privileges upon payment of federal and municipal taxes. Switzerland has signed agreements which avoid double taxation with many countries, including Russia.
FAVOURABLE INVESTMENT CLIMATE A favourable investment climate, social and political stability, a flexible, transparent and viable economic structure, developed infrastructure, legal protection and a high standard of services are undeniable aspects which contribute to the Greater Zurich Area’s appeal. It is also a world renowned business, scientific, educational and cultural centre which attracts tourists as well. Established in 1999, the Greater Zurich Area AG is a non-profit organisation with offices both in Zurich and outside Switzerland. It is a marketing association which promotes business in the Greater Zurich Area and encourages the area's economic development by recruiting international companies abroad and helping them establish offices in the Greater Zurich Area or move their businesses to the region. It also provides start-ups with detailed answers to questions about establishing a company, the market environment, taxes, real estate, work permits, human resources, financing, research facilities, technology transfer, etc.
