Why Switzerland
Operating costs
The cost of doing business in Switzerland balances higher upfront payroll and real estate expenses with advantages like financial and political stability, low financing costs, efficient supply chains, competitive non-wage costs, and energy reliability. Learn about key business expenses in Switzerland and how a supportive environment ensures strong returns on investment.
Utility Costs & Reliability in Switzerland vs. Europe
Switzerland consistently ranks among the most reliable countries in the world for infrastructure. In 2024, households and businesses experienced only 21 minutes of power interruptions on average, far below the European benchmark.
- Electricity: Commercial prices typically range between €0.15–€0.25 per kWh, depending on usage and region. While higher than in Eastern Europe, Switzerland remains competitive with Western economies like Germany or Denmark, which face greater price volatility due to energy imports. Around 60% of Switzerland’s electricity comes from domestic hydropower, making its supply generally more reliable and less exposed to external shocks.
- Water: Industrial water costs are mid-range within Europe, but Switzerland is renowned for exceptional water quality, crucial for industries such as food processing and pharmaceuticals.
- Gas: Prices are competitive with Western Europe and higher than Eastern Europe, yet Switzerland offers far greater stability.
- This combination of stable pricing, low-carbon energy, and high-quality resources makes Switzerland especially attractive for companies with reliable energy or water needs.
Sources and more information
- Doing Business | DataBank, SAIDI Index
ESG Compliance Costs in Switzerland vs Europe
Since 2022, certain companies with a registered seat, head office, or main establishment in Switzerland must comply with due diligence and non-financial reporting requirements under the Swiss Code of Obligations (Articles 964a–c, 964j–l CO).
Key obligations include:
- Supply chain policies and risk assessments
- Traceability systems and grievance mechanisms
- Annual sustainability reporting
Non-compliance may result in fines of up to CHF 100,000 in severe cases. In addition, Switzerland applies a CO₂ levy of CHF 120 per tonne on fossil fuels for heating and industrial processes, with more than half of revenues redistributed to businesses and households.
Compared with the EU’s CSRD and CSDDD directives, Switzerland’s ESG obligations are in many cases lighter and less resource-intensive, reducing administrative burden while maintaining high standards.
Environmental and Energy Standards
Switzerland is home to some of the strongest environmental protection regulations in Europe, grounded in the precautionary principle and the polluter-pays model. Companies must meet standards in:
- Air and soil protection (emissions and contamination controls)
- Noise management (regulated thresholds in residential/mixed-use areas)
- Waste management and recycling (mandatory separation and approved disposal)
- Hazardous substance handling (strict storage and safety rules)
Switzerland’s energy supply is clean, stable, and predictable, thanks to:
- Hydropower (~60%) – renewable, reliable backbone of supply
- Nuclear (~30%) – ensures consistent base load capacity
- Minimal fossil fuels – reduces exposure to volatile global prices
Cantons such as Appenzell Innerrhoden (18,5 Swiss cents/kWh), Uri (19,2 Swiss cents/kWh), Glarus (19,8 Swiss cents/kWh), Obwalden (20,1 Swiss cents/kWh) and Nidwalden (20,5 Swiss cents/kWh) offer some of the lowest energy prices.
Sources and more information
- Ardea International – Switzerland’s New Child Labour Due Diligence Obligations
- Swiss Federal Office for the Environment (BAFU) – CO₂ Levy
Compliance Costs with Swiss Efficiency
Switzerland stands out for its low friction in regulatory processes, clear legal frameworks, and stable governance. This reliability enables companies to plan long-term investments with confidence, reducing administrative uncertainty and operational risk. For CFOs this translates into smoother global operations, fewer compliance surprises, and a stronger foundation for sustainable growth.
Companies spend just 63 hours annually on tax preparation and filing, well below the European average of 140 hours, and far lower than Germany (218 hours) or France (139 hours).
Additional advantages include:
- Abolition of industrial customs duties in 2024, lowering trade costs
- Simplified customs procedures for international commerce
- Strong governance and transparency (ranked 6th globally on the Corruption Perception Index), minimizing compliance risks
This combination of predictability, efficiency, and ethical standards strengthens Switzerland’s competitiveness as an investment destination.
Sources and more information
