Switzerland tops tax domicile list for entrepreneurs

Culture, education and the cost of living are all factors to take into consideration before emigration, but when it comes to tax incentives Switzerland is the top domicile – at least if you’re an entrepreneur.

According to the Global Opportunities report, released by BDO this week, the UK has the next most appealing tax regime, followed by Monaco.

The report said an entrepreneur should be looking primarily for tax benefits on dividends taken from their personal company, or capital gains realised on the sale of a company.

It also looked at the best domiciles for “global executives” – who should been seeking tax breaks related to remuneration – and listed Hong Kong, Singapore and the UK as their best bets.

Pensioners were recommended to head to the balmy climates of Portugal, New Zealand or Cyprus, where they would receive favourable tax treatment on annuity income from pensions or lump sum payments. The report said pensioners should also examine treaties between their new domicile and the country where their pension was sourced.

Richard Montague, tax partner at BDO, said all the top domiciles were appealing in their ways, including for reasons other than tax.

“Switzerland is a wealthy country with a strong economy, political stability and beautiful landscapes which are enticing for entrepreneurs that want to live and work there,” he said. “Hong Kong is one of the world’s leading financial centres known for the simplicity of its tax system, which attracts global executives. Portugal, especially the Algarve, is a key holiday and retirement destination, offering a good quality of life and favourable tax regime for new residents.”