Switzerland: Offshore Legal and Tax Regimes
Activities of Tax-Privileged Operations
The various tax-privileged forms described above are all subject to limitations on their activities or structures as set out. In approximate terms:
- Holding companies must derive most of their income from subsidiaries;
- Domiciliary companies must have only the smallest toehold in Switzerland;
- Auxiliary companies (in 7 cantons only) may have some local activity;
- Service companies must be active only within their own groups; and
- Mixed companies combine domiciliary and service company restrictions.