Nestled in the Alps, the landlocked country of Switzerland has a long and rich history and is one of the oldest countries in Europe. While it is famous for its neutrality and the banking sector, they are only part of what makes this country unique. Despite its small size, Switzerland is one of the richest countries in the world with a GDP PPP of $67,557, higher than most countries in Europe and the US. 

So how did Switzerland manage to prosper and become one of Europe’s most developed countries. Read on and we will cover what makes it special and why it is one of Mundo’s favorites.

It is no secret that Switzerland is known for its banking secrecy laws, but we can assure you there is a lot more to this country. While it is true the financial sector plays an important role in the economy, it alone does not explain why this landlocked country has become one of the richest in the world with a high standard of living. In this section, we will cover what makes Switzerland unique and why it is one of Mundo’s favorite countries. 

Political Stability

If there is one thing that is constant in nearly all the world’s developed countries, it is political stability. You can think of it as a building where it is only as strong as the foundation it is built on. In that regard, good governance and political stability lead to prosperity.

It is no secret that Switzerland rates highly as a place for doing business. With a high standard of living, business-friendly policies, and a highly skilled workforce, the Swiss are a world leader in financial services, pharmaceuticals, and of course, watches. Likewise, the tax laws are favorable, and startup capital requirements are relatively low by European standards. With that said, below are some of the most common business structures in Switzerland.

Sole Proprietorship

This is the most popular business entity and operates in a similar manner to most countries. As the name implies, it is owned by an individual and is commonly used for small or family-owned businesses. 

It is no secret that Switzerland is a leader in asset management, and here we will take a look at why you should consider a Swiss foundation and some of the advantages it has to offer. 

First off, let's start with the basics. Switzerland's concept of a foundation is about as old as the Confederacy itself, dating back to the 1400's. While it has its origins in charities, the foundation has evolved to cover non-profit organizations and those used for families. Granted, the definition is somewhat open to interpretation, although a foundation must have specific goals. Likewise, different rules apply depending on whether or not they are involved in for-profit or not-for-profit activities. 

It is no secret that Switzerland is known for its financial sector, and it is more than the banking secrecy laws. In fact, it has one of the most stable and well-developed financial sectors in the world. Not to mention, this history dates back to the 1700s, and the same can be said for banking confidentiality which predates the 1934 banking secrecy laws. 

While Swiss banks have a reputation for being used by individuals and organizations with something to hide or evade taxes, they are just a small minority. There are a number of reasons why many choose to have a Swiss bank account. It has more to do with the fact the Swiss banking sector is highly regulated and one of the most stable in the world.