This is a company whose purpose is to manage important shares in other companies.
If the Swiss holding company owns shares in foreign companies only, it can get a tax holiday and pay very little tax.

With a Swiss holding company, you get a permanent tax holiday for all cantonal (state) and city taxes if you incorporate your company in the right place. You will pay less than 8% on the holding's income, all inclusive. There is no capital gains tax, so if you sell shares at a profit, this will be totally tax-free.

The principal tax is the 7.8% federal tax on your company's income (effective rate), plus a small amount of tax on the official capital of your company - between 0.35% and 0.075% of the capital (and decreasing). The bottom line is about 8% of net income before taxes, all inclusive. You must also keep in mind that in Switzerland there is no political pressure to raise taxes, unlike in the EU countries where fiscal conformity is a permanent issue.

There are three cantons which offer such tax breaks: Fribourg, Zug and Glaris. Although the rates of taxation are more or less the same in each canton, there are other factors you must keep in mind when deciding where to incorporate your company. These include location, the availability of suitable real estate, the workforce, the language, etc.

We can create a new holding for you in about a week, for a very reasonable fee. If you need further assistance, for example: Swiss directors, accounting and fiscal advise, real estate, and residential permits, we will be glad to offer you the best professional assistance available.

Switzerland now has the lowest tax rates for holding companies in Europe!