Why British entrepreneurs are moving their businesses to Switzerland

This isn’t a passing fad — it’s a deliberate move driven by tax reforms, regulatory uncertainty, and the search for a more stable and efficient business environment. 

But what’s behind this exodus from the UK? Why is Switzerland capturing so much interest? And is the move really worth it in the long run? 

Let’s take a closer look. 

Why are UK entrepreneurs leaving? 

The biggest driver behind the recent surge in relocations is the abolition of the UK’s non-domicile tax regime, which is already in effect as of April 2025. 

For decades, the UK’s non-dom rules allowed foreign nationals living in the UK to avoid paying UK tax on income and gains earned outside the country — as long as those funds weren’t brought into the UK. This system was especially attractive to internationally mobile entrepreneurs and high-net-worth individuals. 

But that’s no longer the case. Under the new rules, long-term UK residents are taxed on their worldwide income and capital gains, regardless of where the money originates or is held. For many, this has meant a sharp increase in tax liabilities — and a powerful incentive to seek more favourable conditions abroad. 

This shift has led many business owners to reconsider their future in the UK — and for a growing number, Switzerland stands out as a smarter alternative. 

Why Switzerland? 

Switzerland offers a wide range of benefits to entrepreneurs and investors, among which three stand out as especially significant: 

Lower and more flexible taxes 

Unlike the UK’s system, Switzerland offers flexibility: each canton sets its own corporate tax rates, often significantly lower than the UK’s 25% headline rate. In some cantons, effective corporate taxes dip as low as 11%. 

On top of that, certain regions provide special incentives for high-value industries like technology, manufacturing, and life sciences. 

Switzerland’s approach to taxation is designed to attract and retain investment. Some cantons actively compete for business by offering tax holidays or deductions for specific activities. This results in a dynamic and entrepreneurial environment that supports innovation and long-term growth. 

Stable, predictable regulations 

Switzerland is known for its legal and political stability. Regulatory changes are rare and tend to be implemented gradually and transparently. For business owners frustrated by the UK’s rapidly shifting fiscal environment, this kind of predictability is a breath of fresh air. 

Business laws in Switzerland are not only clear but also consistent. This consistency extends to employment regulations, company formation rules, and financial compliance — all crucial aspects for entrepreneurs planning expansion. The Swiss government’s commitment to maintaining an attractive business climate is backed by decades of policymaking that balances competitiveness with accountability. 

Access to global talent 

With a highly educated, multilingual workforce and strong ties to European markets, Switzerland gives companies a competitive edge — particularly those operating across borders or in specialised sectors. Many cantons also collaborate closely with top academic institutions, fostering innovation and a steady flow of highly skilled talent. 

Switzerland also ranks highly in global innovation indices. This reputation is underpinned by its education system, extensive R&D facilities, and industry-specific research hubs. For tech firms, biotech start-ups, or advanced manufacturers, this ecosystem is an ideal foundation for scaling and diversification. 

Comparing Switzerland and the UK in 2025 

Here’s how the business and tax environment in post-reform UK stacks up against Switzerland today: 

Factor	United Kingdom (2025)	Switzerland
Taxation on Global Income	Taxed in full, regardless of origin	Taxed based on residency and canton; exemptions possible
Corporate Tax	Flat 25%	Varies by canton: 11–21%
Non-Dom Benefits	Abolished	Not applicable, but alternatives exist (e.g., lump-sum taxation)
Wealth Tax	None	Exists, but modest and canton-specific
Capital Gains Tax	Up to 28%	Generally, not applied to private individuals
Inheritance Tax	Up to 40%	Often none or very low, depending on canton
Regulatory Complexity	Increasing	Low, streamlined bureaucracy
Political Stability	Moderate, fluctuating	High, with long-term consistency
EU Market Access	Limited post-Brexit	Maintained via bilateral agreements
Quality of Life	High but regionally inconsistent	Consistently high and globally ranked

How to relocate your business to Switzerland 

UK companies can’t simply “move” to Switzerland — but setting up a new Swiss entity is straightforward with the right approach. 

Key steps: 

1. Determine structure 

Decide whether you’re opening a subsidiary, new HQ, or branch. Choose between: 

• GmbH/Sàrl (Limited Liability): Requires CHF 20,000 capital, easier setup. 

• AG/SA (Stock Corporation): Requires CHF 100,000 capital (at least CHF 50,000 paid in); more flexible and anonymous. 

2. Appoint a swiss-resident director 

Swiss law requires at least one director who is a Swiss resident with signatory authority. This ensures local compliance and a point of contact with authorities. 

3. Secure a registered swiss address 

This can be a physical office or a professional address service, depending on operational needs. 

4. Deposit capital into escrow 

You must deposit the required share capital into a Swiss bank escrow account. The bank provides confirmation used in the incorporation process. 

5. Draft & notarise documents 

This includes the Articles of Association and other founding paperwork, which must be notarised by a Swiss notary. 

6. Register with the commercial register 

Once documents are complete, submit them to the cantonal Commercial Register. This step legally establishes the company — typically within 1 to 4 weeks, depending on the canton. 

7. Fulfill post-registration obligations 

• VAT registration (if turnover exceeds CHF 100,000 annually) 

• Social security registration (if hiring staff) 

• Accounting and auditing setup based on business size and type 

LedgerPeek offers complete support through this process — helping UK entrepreneurs set up Swiss operations with minimal stress and maximum compliance. 

Top swiss cantons for business relocation 

Each Swiss canton has its own strengths. Here are some of the most attractive for UK founders: 

Zug 

Known for ultra-low corporate tax rates and its thriving fintech and crypto ecosystem (“Crypto Valley”). 

Zurich 

Switzerland’s economic hub, offering deep talent pools, excellent infrastructure, and proximity to global finance. 

Geneva 

An international city with strong diplomatic and financial institutions — ideal for businesses with a global focus. 

Lucerne 

Strategically located, with excellent logistics access and a balanced, business-friendly regulatory approach. 

Nidwalden & Schwyz 

Cantons offer some of the lowest effective tax rates in Europe and are particularly popular for holding companies and IP management. 

Conclusion: is Switzerland good for UK business? 

For UK entrepreneurs navigating an increasingly complex and costly domestic landscape, Switzerland presents a clear and compelling alternative. It’s not merely about escaping higher taxes — it’s about choosing an ecosystem that rewards strategic growth, offers long-term regulatory certainty, and opens the door to international talent and capital. 

Switzerland’s decentralised tax system, political neutrality, and business-first policies create a foundation that aligns well with modern entrepreneurial values. The country’s reputation for efficiency, transparency, and quality of life only strengthens its appeal — especially for those looking to scale operations, preserve wealth, and operate in a truly global context. 

While the decision to relocate a business is never simple, the benefits Switzerland offers are difficult to ignore. For many UK business owners, making the move isn’t just a reaction to domestic tax changes — it’s a proactive investment in a more resilient and prosperous future. 

Ready to make the move? 

LedgerPeek is here to guide you through every step — from legal structure and licensing to tax planning and company setup. In addition to this, our experts provide ongoing support in key financial functions such as accounting, taxes, budgeting, financial forecasting, and other essential business operations — ensuring your Swiss entity remains fully compliant, financially sound, and positioned for sustainable growth.