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Why Choose Cyprus?

Cyprus has emerged as a premier destination for businesses and investors seeking a strategic location, political stability, tax efficiency, and access to the European market. Located in the east Mediterranean, Cyprus offers unparalleled advantages for companies looking to thrive in a competitive global environment.

Benefits of Establishing a Cyprus Company:

• Competitive Corporate Tax Rates
  Cyprus boasts one of the lowest corporate tax rates in the EU at just 12.5%, making it a hub for international trading and business operations. The Cyprus corporate tax system is designed to attract both small and large businesses seeking tax efficiency.
• No Capital Gains Tax
  Apart from gains on immovable property in Cyprus or shares in companies owning such property, there is no capital gains tax in Cyprus, offering significant savings for investment companies.
• Other Tax Benefits
• No tax on dividends received from subsidiaries (subject to conditions)
• No withholding tax on dividends paid to non-resident and non-domiciled shareholders

These other tax benefits are particularly advantageous for holding structures.

• EU Membership with Access to Conventions
  As a member of the European Union since 2004, a Cyprus company benefits from EU trade agreements and conventions, offering seamless access to the European market.
• Extensive Double Taxation Treaties (DTAs)
  With an expansive network of DTAs, including agreements with over 60 countries, Cyprus eliminates double taxation for businesses and investors.
• Exemptions for Overseas Permanent Establishments
  Profits from a permanent establishment outside Cyprus are exempt from Cyprus tax, provided no more than 50% of the income derives from investment income like dividends or interest.
• Notional Interest Deduction (NID)
  To encourage equity financing, Cyprus allows companies to claim a notional interest deduction on new equity used to generate taxable income. This deduction is capped at 80% of the taxable profit, with the remaining 20% taxed at the standard Cyprus corporate tax rate. Reducing the effective tax rate to 2.5%.
• Attractive Intellectual Property (IP) Tax Regime
  Cyprus is a top destination for IP-focused companies. 80% of profits from intellectual property are exempt from corporate tax, reducing the effective tax rate on IP-related income to as low as 2.5%. This is called the IP Box Regime.
• Favourable Shipping Regime
  The Cyprus shipping regime offers tax based on tonnage rather than corporate profits, making it one of the most attractive frameworks for shipping companies globally.

What is in the Details?

Legal System

Cyprus was a British colony until 1960, when the island became an independent republic. Until independence the legal system was based on the English legal system. The laws enacted for the colony applied to Cyprus the principles of common law and equity. Many of those laws are still in force today.

After independence in 1960 the English legal system was largely preserved. 

Following the accession of The Republic of Cyprus to the European Union in 2004, the Constitution was amended so that European law has supremacy over the Constitution and national legislation.

Formation of a Private Limited Company in Cyprus

International business entities can register under the Cyprus Companies Law (Cap. 113). The Cyprus Companies Law has undergone numerous amendments to align with the EU regulations and the evolving business and international needs.

Incorporation

• Incorporation takes approximately three to four business days once the necessary documents are submitted to the Cyprus Registrar of Companies.

Share Capital

• There is no specific legal requirement for a minimum share capital. However, in practice the usual share capital of a newly incorporated company is €1,000.

Shares and Shareholders

• Shares must be registered.
• Companies may issue different classes of shares, each with varying rights to dividends and voting.
• Minimum number of shareholders: 1; maximum: 50.

Nominee Shareholders

• Nominee shareholders are permitted, and services for nominee shareholders can be provided, however the ultimate beneficial owner(s) is/are registered in the Beneficial Owner Register.

Registered Office

• Every Cyprus company must have a registered office located within Cyprus.

Directors

• Minimum number of directors: 1.
• Corporate entities can serve as directors.

Company Secretary

• A company secretary is mandatory, and corporate entities may also fulfil this role.

Statutory Records and Annual Returns

• Audited financial statements must be submitted to the Cyprus Registrar of Companies annually.
• Tax returns are filed with the Income Tax Authority.
• Companies are required to hold an Annual General Meeting (AGM) every year, ensuring no more than 15 months pass between meetings.

Accounts and Year-End

• Default financial year-end: 31st December. However, companies may choose a different year-end date.
• Companies following the calendar year must file tax returns and financial statements within 12 months of their year-end.

Taxation

• Companies are classified as tax resident or non-tax resident for tax purposes.
• A company is considered tax resident if its management and control is located in Cyprus. See our article on Economic Substance for full details on the management and control of the company.
• Tax resident companies are taxed on their net profits at a corporate tax rate of 12.5%, although certain types of income may be taxed at lower or even nil rates. As explained above.

Sufficient Economic Substance

• As mentioned above, all Cyprus tax resident companies must have sufficient management and control within Cyprus. Please use the link provided for full details on Economic Substance.

If you are interested in incorporating a Cyprus company, the team at Dixcart Cyprus are on hand to answer any questions you might have and assist you along the way. Please contact a member of the team on: advice.cyprus@dixcart.com

The data contained within this Information Note is for general information only. No responsibility can be accepted for inaccuracies. Readers are also advised that the law and practice may change from time to time.

Background to the “60 Day” Tax Residency Rule

Since 2017, there have only been two tests to determine Cyprus tax residency. These are the 183 Day Tax Residency Rule and the 60 Day Tax Residency Rule.

Since the implementation of the 60 day tax rule, a number of individuals have relocated to Cyprus to take advantage of the various tax benefits that are available.

Criteria to be Met for an Individual to Meet the 60 Day Residency Rule

The 60 Day Tax Residency Rule applies to individuals who in the relevant tax year:

• Legally reside in Cyprus for at least 60 days in the tax year
• Are employed, self-employed, or a director of a company that is tax resident in Cyprus
• Own or rent a residential property in Cyprus for the whole tax year
• Not tax resident in any other country
• Do not spend more than 183 days in total in any one other country

Advantages of the 60 Day Tax Residency Rule

The main advantage of the 60 Day Tax Residency Rule is the short “stay requirement”. This enables highly mobile individuals to have a stable EU member state as their base but still allows them to travel for a significant portion of the year. Other benefits available through Tax Residency in Cyprus include:

• Access to the highly beneficial corporate tax regime in Cyprus
• Access to the wide array of Personal Tax benefits in Cyprus
• Potential to apply to be taxed under the Cyprus Non-domicile Regime
• Potential to apply for an EU passport after a defined period of residency (dependant on your visa type)

How Can We Help?

If you would like to know more about Cyprus tax residency or if you have any questions about how we can help you, please contact us: advice.cyprus@dixcart.com.

Our expert team can support you through every step, from immigration matters to tax residency applications, as well as compiling your supporting documentation. We will even handle your annual tax return.

If you are planning to take advantage of the 60 day rule, we offer a full range of corporate services including, but not limited to, company formation, secretarial support, and accounting services.

We provide end-to-end support at every stage, helping you successfully navigate Cyprus’ tax residency and compliance requirements, so you can make the most of Cyprus’ excellent tax benefits.

The data contained within this Information Note is for general information only. No responsibility can be accepted for inaccuracies. Readers are also advised that the law and practice may change from time to time.

their advisors are increasingly seeking structures that balance private enjoyment with the ability to generate charter income when opportunities arise. The Isle of Man Ship Registry’s launch of the Yacht Engaged in Trade (YET) Scheme delivers exactly that, a forward-thinking solution that cements the Isle of Man’s reputation as a global leader in yacht registration and regulation.

Dual-Use Flexibility Without Full Commercial Conversion

Traditionally, yacht ownership meant choosing between two paths: registering a vessel exclusively for private use or committing to the complexities and cost of full commercial registration. The YET Scheme bridges this gap.

Under the Isle of Man YET programme, private yachts of 24 metres and above can engage in limited charter activity, up to 84 days per year, within designated EU waters, currently France, Monaco, Greece and Croatian waters. Owners retain the freedom of private use while accessing one of the world’s most valuable charter markets.

This structure is particularly attractive for owners seeking to offset operational costs or maximise asset utility without permanently converting to commercial status.

Built on Compliance and Regulatory Credibility

The Isle of Man has established itself as a jurisdiction synonymous with credibility, regulatory robustness, and practical solutions for yacht ownership. The YET Scheme builds on this foundation.

• Safety and technical compliance are ensured through adherence to the Red Ensign Group (REG) Yacht Code, the premier international benchmark.
• Tax and customs compliance is secured through either Temporary Admission or VAT-paid status, giving owners clear, structured pathways to meet EU requirements.

This ensures that yachts flagged in the Isle of Man benefit from both operational flexibility and regulatory certainty, critical considerations for owners and their advisors.

Why the Isle of Man?

As Cameron Mitchell, CEO of the Isle of Man Ship Registry, has emphasised, the YET Scheme is designed to provide “an efficient, compliant, and flexible pathway to access the EU charter market without compromising private use.”

This approach underscores the Isle of Man’s strengths:

• Proactive regulatory innovation in response to industry needs.
• A trusted, globally recognised flag within the Red Ensign Group.
• A track record of professionalism and service quality valued by owners and their advisors worldwide.

Conclusion

The introduction of the YET Scheme is more than just another registration option, it is a strategic advantage. By combining regulatory rigour with practical flexibility, the Isle of Man provides yacht owners with a modern framework that aligns with today’s ownership models.

For brokers, managers, corporate service providers, and maritime lawyers, the YET Scheme offers a new tool to structure ownership in a way that balances lifestyle with compliance and commercial opportunity.

In an increasingly competitive and regulated environment, the Isle of Man has once again positioned itself as a jurisdiction of choice for forward-thinking yacht owners.

Additional Information

If you require further information regarding this development and how we can assist, please contact Paul Harvey at Dixcart: advice.iom@dixcart.com

Dixcart Management (IOM) Limited is Licensed by the Isle of Man Financial Services Authority

Introduction

For high-net-worth individuals and families, yachts represent not just a mode of transport but also a symbol of luxury and leisure. Owning a yacht in the optimum manner involves various important considerations, including the jurisdiction of registration, which can have a significant impact regarding; tax implications, regulatory compliance, and operational flexibility.

Dixcart Air Marine specialises in assisting clients with yacht registration across different jurisdictions, offering expertise and guidance throughout the process.

Registration of Yachts

The registration of a yacht involves choosing the right jurisdiction, considering factors such as tax regulation, legal framework, and administrative procedures.

Dixcart Air Marine provides comprehensive services, including; coordination of the registration process, advice on tax efficiencies, and ongoing administration and management.

In addition, we can assist with; special purpose vehicles, accounting, customs arrangements, and value-added services such as directorships. Our expertise extends to import and export formalities, asset registration, and advice on VAT and corporate tax.
We handle ongoing registration requirements and closely monitor costs, budgets, and cash flow. We can also assist with crewing, including contracts and payroll.

Choosing the Right Jurisdiction

Selecting the appropriate jurisdiction for yacht registration is crucial. Each jurisdiction offers unique advantages, catering to different needs and preferences. Cyprus, Guernsey, Isle of Man, Madeira (Portugal), and Malta are among the sought-after jurisdictions for yacht owners due to their; favourable tax regimes, regulatory framework, and maritime expertise.

Yacht Registration in Cyprus

Cyprus emerges as an attractive jurisdiction for yacht registration, offering competitive registration fees, low annual costs, and favourable tax provisions. The Cyprus shipping registry has witnessed significant growth and maintains high-quality standards.

Recognised on the Paris and Tokyo MOUs’ whitelists, Cyprus attracts foreign ship owners with its excellent tax benefits and quality fleet. Notable advantages include compliant VAT procedures, and a robust tonnage tax system. Additionally, Cyprus offers tax exemptions on dividend income and profits from foreign establishments, ideal for ship management companies seeking efficiency and reliability.

In May 2010, Cyprus introduced a tonnage tax system in line with EU guidelines. This system calculates the tonnage tax (TT) based on the net tonnage of eligible ships involved in qualifying shipping activities and uses a defined set of band rates as detailed in the appropriate legislation. Instead of taxing profits directly, this system assesses ships based on their size, offering flexibility for companies with diverse business operations under the same group.

Shipping activities are taxed according to ship size, while other operations face a fixed tax rate of 12.5%. Additionally, Cyprus provides various tax advantages to ship management companies, such as exemption from dividend income (under specific conditions), tax-free profits from foreign permanent establishments, and no withholding tax on income repatriation (including dividends, interest, and nearly all royalties).

If you would like further information regarding Yacht Registration in Cyprus, please contact: advice.cyprus@dixcart.com

Yacht Registration in Guernsey

As a member of the Red Ensign Group, Guernsey provides a reputable yacht registry, ensuring stability, tax efficiency, and regulatory compliance. Yachts registered in Guernsey benefit from competitive fees and reliable administration. Utilising a Guernsey corporate structure offers asset protection and other advantages, including access to an exclusive flag and VAT registration. Additionally, Guernsey’s international registration validity, flexible presence requirements, and VAT-free options appeal to yacht owners.

Guernsey provides competitive registration fees without tonnage tax or additional annual ship registry fees. Registrations are internationally recognised, with all documentation available in English and widely accepted.

Importantly, Guernsey-registered yachts are not obligated to visit Guernsey physically. In addition, as Guernsey lies outside the EU VAT territory, it offers advantages to non-EU resident owners who wish to operate their vessels VAT-free in Europe, under Temporary Admission (Temporary Importation) relief, provided they meet eligibility criteria.

If you would like further information regarding Yacht Registration in Guernsey, please contact: advice.guernsey@dixcart.com

Yacht Registration in Isle of Man

The Isle of Man offers advantageous VAT arrangements for commercial charter services, allowing for VAT reclamation on purchases or importations. Yachts owned by Isle of Man-registered companies enjoy zero-rated tax on charter income, along with streamlined customs procedures and tax benefits.

Even if a yacht is not registered on the island, it can still benefit from the Isle of Man’s VAT arrangements, if owned by a company registered for VAT in the Isle of Man, as long as it is used for commercial charter services. In addition, Isle of Man structures enable VAT accounting and reclamation on yacht purchases, facilitating efficient transactions.

Charter income can be subject to a zero-tax rate in the IOM. If a yacht can accommodate ten or more passengers, including crew, it may qualify as ‘passenger transport’ for VAT purposes. In the Isle of Man or the UK, supplies of ‘passenger transport’ are VAT-exempt, while in EU member states, chartering services may be subject to local VAT regulations depending on where the charter occurs.

If you would like further information regarding Yacht Registration in the Isle of Man, please contact: advice.iom@dixcart.com

Yacht Registration in Madeira (Portugal)

Madeira, as part of Portugal, offers a credible and competitive option for yacht registration through its International Shipping Register. Yachts registered in Madeira benefit from EU compliance, VAT advantages, and tax incentives, making it an attractive choice for yacht owning companies.

Madeira’s International Shipping Register (MAR) maintains EU standards and is not recognised as a flag as a convenience by organizations like the International Transport Workers’ Federation (ITF). Additionally, MAR allows full access to EU waters without restrictions for commercial or private yachts. For commercial yachts, MAR offers VAT exemptions on various expenses.

Importing a second-hand yacht into the EU, particularly under Portuguese VAT rules, offers several advantages. Firstly, VAT can be applied to a lower acquisition price based on devaluation, potentially resulting in a significant VAT reduction. For commercial yachts registered on MAR and engaged in charter activities, there are VAT exemptions on the acquisition price, repairs, fuel, provisioning goods, and equipment supply, provided there is regular commercial operation and appropriate charter agreements are in place.

In addition, operational benefits include no citizenship requirements for crew, and exemption from personal income taxes, and flexible social security arrangements for crew members.

Yacht owning companies in Madeira enjoy a favourable tax regime, which includes reduced corporate income tax rates and withholding tax exemptions. Madeira companies benefit from automatic VAT registration, exemptions from initial yacht registration fees, and reduced annual fees. Furthermore, investment routing can eliminate withholding taxes on dividends.

If you would like further information regarding Yacht Registration in Madeira, please contact: advice.portugal@dixcart.com

Yacht Registration in Malta

Over the past decade, Malta has consolidated its status as an international Mediterranean centre of maritime excellence, with the largest shipping register in Europe and the sixth largest in the world. Additionally, Malta offers favourable conditions to yachts used for both private and commercial charter and is a world leader in commercial yacht registration. Its business-friendly environment, strategic Mediterranean location, and adherence to international maritime standards contribute to its prominence.

Maltese registered commercial yachts face no trading restrictions, and there is a fast crew-acknowledgement certification process, with a maximum three-month acknowledgement period.

When a yacht is to be used for commercial chartering, a VAT deferment can be obtained, when a yacht, to be used for a commercial operation, is imported into Malta. The yacht owner is also able to recover VAT incurred on goods and services used for the chartering operation.

Similarly when a yacht is to be used for long term leasing, a VAT deferment can be obtained, with the end user, the lessee, paying VAT on the monthly lease payments over the term of the lease. Furthermore, any usage of the yacht outside EU waters is not subject to VAT.

Sales of yachts by Maltese-licensed shipping organisations incur no Malta tax, and non-Maltese residents selling shares in a yacht-owning company are exempt from capital gains tax under Malta Tax Law.

If you would like further information regarding Yacht Registration in Malta, please contact: advice.malta@dixcart.com

Conclusion and Contact Details

Selecting the right jurisdiction for yacht registration is paramount for maximising benefits and ensuring regulatory compliance. With its expertise and global presence, Dixcart Air Marine assists clients in navigating the complexities of yacht ownership, offering tailored solutions to meet their specific needs and preferences.

If you would like further information regarding Yacht Registration, and aren’t sure what jurisdiction, please contact advice@dixcart.com for further assistance.

Background

Portugal is a popular destination for foreign investors, thanks to its buoyant economy, favourable tax climate, and strategic location in Europe.

If you are considering incorporating a company in Portugal, there are a few things you should take into consideration. The article below explores common company structures. More information on the incorporation process can be found here.

Choosing the Right Type of Company Structure

There are two main types of company that can be incorporated in Portugal: limited liability companies (Sociedades por Quotas ‘LDAs’) and joint stock companies (Sociedades Anónimas, ‘SAs’).

LDAs are the more common type of company in Portugal. They are relatively easy to set up and have a lower minimum share capital requirement than SAs.

SAs are more complex to set up and have a higher minimum share capital requirement.

However, they offer a number of advantages, such as limited liability for shareholders and the ability to raise more capital.

The table below summarises the key differences between SA and LDA companies in Portugal:

Feature	SA	LDA
Minimum capital	€50,000	€2 (or €1 for a single shareholder)
Number of shareholders	Minimum of 5 (unless the company is sole shareholder)	Minimum of 2 (or 1 by the denomination of Sociedade Unipessoal Lda)
Transfer of shares	Freely transferable	Can only be transferred by public deed
Management	Board of directors	General partners
Liability	Shareholders are liable for the company’s debts up to the amount of their shares	Shareholders are liable for the company’s debts up to the amount of their quotas
Taxation	Subject to corporate income tax	Subject to corporate income tax
Audit Requirements	Always subject to auditor or supervisory board	One independent auditor or supervisory board is required, if for a period of two consecutive years, two of the following thresholds are met: 1.    Balance exceeds €1.5 million 2.    Total turnover and other revenue of at least €3 million 3.    Average number of 50 or more employees

There are, a number of additional things to consider when choosing between an SA or an LDA:

• Future growth plans: if you plan to grow your business and raise capital from investors, an SA may be a better option. This is because SAs are more widely recognized and accepted by investors.
• Management structure: If you want to have more control over the management of your business, an LDA may be a better option. This is because LDAs are more flexible in terms of management structure.
• The corporate tax rate is largely unaffected by the company type but rather based on activity and location – see here for more information on corporate tax rates applicable to companies.

If you are still unsure about which type of company is right for you, it is a good idea to consult with a lawyer or accountant who can help you assess your specific needs and circumstances.

Please reach out to Dixcart for more information: advice.portugal@dixcart.com.

Background

Switzerland is an attractive jurisdiction for the location of a company for several reasons, as detailed in the Dixcart Swiss Company Jurisdiction Note.

Forming or Investing in a Swiss Company and Becoming a Director or an Employee of the Company

The establishment of a Swiss company is also one of the routes to be able to move to Switzerland.

EU/EFTA and non-EU/EFTA nationals can form a Swiss company, be employed by it and reside in Switzerland.

Any foreign national can form a company and therefore potentially create jobs for Swiss nationals. The owner of the company is eligible for a residence permit in Switzerland, as long as he/she is employed by the company in a senior capacity.

What are the Criteria?

In principal, non-EU/EFTA nationals need to form a company which must generate an annual minimum turnover of CHF 1 million, and create new jobs exploiting new technologies and/or the development of the region and contribute to the economic development of the country.

The company must generate a business plan detailing how the amount to be invested will generate a turnover of CHF 1million or more per annum, in the ‘near’ future. The business plan needs to show that the company will achieve this turnover in a specified number of months, not necessarily in the first year, particularly if the company is a start-up.

The types of economic development objectives for the company, which are regarded positively in Switzerland, include: opening up new markets, securing export sales, establishing economically significant links abroad, and the creation of new tax revenue. Precise requirements vary by canton.

Investment in a Swiss Company

Alternatively, EU and non-EU/EFTA applicants can choose to invest in a company which is struggling to expand, as it lacks the necessary funding.

This new funding should then enable the company to create jobs and assist the Swiss economy to expand. The investment must add economic value to a particular Swiss region.

Non-EU/EFTA Nationals

A higher level of due diligence criteria must be met by non-EU/EFTA nationals, in comparison to EU/EFTA nationals, and the business proposition, will also need to offer greater potential.

Taxation

Swiss companies can enjoy a zero-tax rate for capital gains and dividend income, depending on the circumstances.

Trading companies are taxed as follows:

• The effective cantonal and federal corporate income tax rate (CIT) is between 12% and 14% in most cantons. The Geneva corporate tax rate is 13.99%.

Swiss Holding Companies benefit from a participation exemption and do not pay tax on profits or capital gains arising from qualifying participations. This means that a pure Holding Company is exempt from Swiss tax.

Withholding Tax (WHT)

• There is no WHT on dividend distributions to shareholders based in Switzerland and/or in the EU (due to the EU Parent/Subsidiary Directive).
• If shareholders are domiciled outside Switzerland and outside of the EU, and a double tax treaty applies, the final taxation on distributions is generally between 5% and 15%.

Double Tax Treaties

Switzerland has an extensive double tax treaty network, with access to tax treaties with over 100 countries.

Additional Information

If you require additional information relating to Swiss companies and the advantages they can offer, please speak to Christine Breitler at the Dixcart office in Switzerland: advice.switzerland@dixcart.com.

Background

Swiss companies are very popular and it is important to understand the Swiss Social Security System when considering the establishment of a company in this attractive jurisdiction.

The Swiss social security system is unique and relatively complex. The assistance of an expert such as Dixcart is recommended, to guide you through the process and to ensure that you are fulfilling all of your obligations.

Attractive Protections for Employees

Switzerland has a close-knit network of different types of ‘social’ insurance, which offer individuals living and working in the country, and their dependants, a broad protection against financial risks, which could not be covered without this insurance.

Who is Subject to the Swiss Social Security System?

Anyone working or living in Switzerland is subject to the Swiss Social Security System.

The Five Areas

The Swiss social security system is divided into five areas:

1. Old-age, survivors and invalidity (the three-pillar system).
2. Sickness and accidents.
3. Income compensation allowances, in the event of compulsory service, maternity or paternity leave.
4. Unemployment benefits.
5. Family allowances.

1. Old Age, Survivors and Invalidity

The Swiss social security system covers the risks of old age, death and disability and is built on the three pillars of; old-age, survivors and invalidity

The first Pillar (Pillar 1) is a mandatory state pension plan for everyone. It aims to cover basic living costs.

The second Pillar (Pillar 2) is compulsory for salaried persons. It feeds into “Pillar 1” to maintain the previous standard of living for individuals, to provide them with an income equal to approximately 60% of that earned pre-retirement. The law sets the minimum statutory benefits. Companies and other institutions may establish benefits exceeding this minimum.

“Pillar 1” and “Pillar 2” are compulsory and dealt with by the employer, “Pillar 3” is a voluntary individual process organised directly with an insurance company or bank. This scheme benefits from tax incentives.

2. Health and Accidents

Swiss health insurance is mandatory for everyone living in Switzerland for longer than three months. The insurance premiums are considered a private cost and are rarely covered by the employer.

Accident insurance is compulsory for everyone with gainful employment in Switzerland. It covers the financial consequences of accidents at work and outside of work.

In other cases, the risk is covered under private health insurance.

3. Compulsory Military Service, Maternity and Paternity Leave

Anyone living or working in Switzerland is insured. It partially covers loss of earnings arising from the performance of military or civil protection services, or during maternity and paternity leave.

4. Unemployment Benefits

In principle, anyone who has been gainfully employed is covered by the unemployment insurance scheme. Self-employed individuals are not covered.

5. Family Allowances

The family allowance is a provision to compensate for the costs incurred by raising a family.

Contributions Payment.

The benefits paid out by the different types of social security are in principle financed by contributions levied on income.

Employees and employers make contributions in equal parts. The employer’s contribution should at least equal the employee’s contribution. The employer pays the total amount to the insurance company and deducts the employee’s contribution from their salary.

The following are exceptions to the above:

• Family Allowances, which are almost exclusively financed by employers.
• Private Health Insurance, which is paid by each individual.
• “Pillar 3” which is voluntary and supported by each insurer.

Please note that self-employed individuals make full contributions themselves to Swiss Social Security.

Switzerland and International Social Security

Switzerland has concluded bilateral and multilateral social security agreements with EU and EFTA member states, as well as with a number of other countries. These social security agreements determine the rights and obligations of citizens in relation to the social security system of another signatory state. The aim is to ensure the equal treatment of citizens from both Switzerland and the other state.

Switzerland is chosen by many international companies as a base for their European or global cross-border business activities, largely because of its advantageous investment climate. Swiss employment law is known as being more liberal than other jurisdictions. While the fundamental principle of contractual freedom is predominant, it is important to understand the statutory minimal standard and the social protection mechanisms provided by Swiss law.

How Can We Help?

The Dixcart office in Switzerland can assist you with all of the following:

1. Preparing and supporting the Swiss Social Security process.
2. Coordinating the contribution payment via the payroll.
3. Relevant administrative work.
4. Clarifying social security obligations, particularly in an international context.

Please contact Christine Breitler, who will be delighted to put you in contact with the appropriate expert in the Dixcart Swiss office: advice.switzerland@dixcart.com