More for less.

St.GallenBodenseeArea, Switzerland

Europe‘s central business hub

Cost and tax efficient

1
St.GallenBodenseeArea

2
Location advantages

3
St.GallenBodenseeArea (1/2)

 One of the largest economic regions in Switzerland

(Catchment area of about 2 million people)
 Centrally located with excellent infrastructure
 3 international Airports - shorter travel times
 Favourable cost structures by Swiss standards
 Corporate tax rates between 12 - 17%
 Attractive real estate at reasonable prices
 Liberal Swiss labour laws combined with high local productivity
 Border crossing recruitment potential
 4 universities and 4 International schools

4
St.GallenBodenseeArea (2/2)

 Main skills: accuracy (electronics, photonics), ICT, medtech,

Plastics, Cleantech, engineering
 Ideal for central functions, production and research
 Excellent quality of life

5
Location

6
Geography

FL

7
Centrally located

 Quadripoint Germany –
Austria – Liechtenstein – Switzerland

 In the centre of the Technology

Triangle Stuttgart – Munich – Milan

 Good connections to the international

road and rail network

 Proximity to the international airports Zürich,

St.Gallen-Altenrhein as well as Friedrichshafen

8
Labour

9
Highly qualified and motivated personnel
(1/2)

Access to potential employees: various universities and university institutes within reach

 Top-ranked world class universities nearby

 University of St.Gallen: www.unisg.ch
 University of Konstanz: www.uni-konstanz.de
 Thurgau University of Teacher Education (PHTG): www.phtg.ch
 St.Gallen University of Teacher Education (PHSG): www.phsg.ch
 Swiss Federal Institute of Technology Zurich (ETH Zürich):
www.ethz.ch
 University of Applied Sciences St.Gallen: www.fhsg.ch
 Interstaatliche Hochschule für Technik Buchs: www.ntb.ch
 Hochschule für Technik Rapperswil: www.hsr.ch

10
Highly qualified and motivated personnel
(2/2)

 Worldwide operating corporate research centers

 IBM Research: www.research.ibm.com
 SAP: www.sap.com
 DOW: www.dow.com

11
Availability of an international Workforce

 Large catchment area

(2 million people within 45 minutes)
D

 Potential for domestic and foreign

labour force in the quadripoint
(around 10'000 cross-border
commuters from Austria and Germany) AT

 Right to work and residence permits

for citizens of EU member states FL

 Availability of permits for non EU-citizens

12
Attraction for foreign high skilled workers

Switzerland
USA
Singapore
United Kingdom
Ireland
Austria
Poland
China Mainland
Germany
Belgium
Denmark
Czech Republic
France
Italy
0.0 2.0 4.0 6.0 8.0 10.0

Source: IMD World Competitiveness Online, 2013 13

Liberal Labour Law & Extra Productivity

 Local normal working hours: 42 - 44 per week

 Local normal holidays: 20 - 25 days per year
 Only 10 bank holidays per year
 Relaxed redundancy regulations: one to three months protection
against dismissal
 Low participation rights
 Low wage level by Swiss standards
 Low non-wage labour costs (employer share approx. 15% of
gross salary)
 High motivation and exceptional loyalty of employees

14
Salaries for key jobs

 Administration
 Secretary/Assistant, bilingual: 59,000 - 79,000 CHF/year
 Experienced Secretary/Assistant, trilingual: 66,000 - 91,000 CHF/year
 Experienced Accountant: 80,000 - 120,000 CHF/year
 Experienced Controller: 90,000 – 140,000 CHF/year
 Technical Staff
 Engineer, no professional experience: 80,000 – 92,000 CHF/year
 Experienced Engineer, bilingual: 91,000 – 125,000 CHF/year

Source: ProPers AG, Frauenfeld – www.propers.biz / August 2013

15
Tax
Corporate taxes

 Regular corporate tax as a percentage of net income before

taxes:
between 12% and 17%

 Tax relief for investments possible

 Attractive taxation of managing or administrative companies

17
 Low corporate taxes
National comparison

Corporate taxes 2013

profit- and capital tax, synthetic index

Tax burden index

high

Swiss- average

low

Source: Credit Suisse Economic Research, Braingroup, Geostat

18
Individuals tax comparison

Zug
Appenzell AI
Appenzell AR
Schaffhausen
Thurgau
St. Gallen
USA
Zurich
Italy
Genf
Germany
Irland
Belgium
Sweden
0.0 20.0 40.0 60.0

Source: excerpt from KPMG‘s Individual Income Tax and Social Security Rate Survey 2013
19
Compared the maximum income tax rates for individuals (single, noch children, no confession)
Taxation of individuals

 Tax rates vary from community to community

 Tax returns will be established regularly even

 Capital gains are tax-free as a rule

 No inheritance or gift tax (for spouses and descendants in

direct line)

 Solutions for expatriates: Higher deduction for expenses such

as housing, moving expenses, travel expenses and training
costs

20
Real Estate

21
Cost for Real Estate

 Cost for Office rental (per square metre and year)

 Cities: CHF 150 – 300

 Surroundings: CHF 90 - 240

22
Business parks: examples

23
 Costs: office space, national comparison
in Swiss francs

Source: Wüest & Partner, Immo-Monitoring 2010/2

24
 More for Less

Residency of foreign employees

25
Residence Permits for EU Nationals

 The free movement of persons applies

 Proof of employment in Switzerland qualifies employees
for a residence permit
 Permits for cross-border commuters possible
 No-fuss permit procedure, rapid approvals
 Cantonal authorities grant permits

26
Residence Permits for other countries
(outside EU/Efta)

 No free movement of persons, restricted options

 Residency basically possible for highly qualified or
specialised employees
 No-fuss procedure provides good scope of international
transfer of existing teams of employees
 Detailed documentation required for application
 Federal authorities ultimately responsible for approval

27
 More for Less

Excellent quality of life

28
Top quality of life

 Unspoiled environment and breathtaking natural surroundings

 Superb living comfort and recreation – A unique mix of town

and coutry

 Variety of culture and leisure opportunities

 Low cost of living by Swiss standards

 Healthy property market, moderate real estate prices

 Education for a great future with international schools

 Top-level education – qualified workforce

29
 Individuals: Disposable Income
National comparison

3
UR
GL
2
AI OW TG AR
SH SG NW GR SZ SO
LU AG JU VS FR
1
TI
ZG BE
0
NE
ZH BL
-1
VD BS
Gross Income
-2 - Taxes (Income, wealth
- Social insurance
= Disposable Income
-3 - Rent plus additional costs
- Energy
- Mobility costs
= Free disposable Income
-4
GE

Source: Credit Suisse Economic Research 2011, synthetic indicator, CH = 0

30
International schools

31
 HAPPY CUSTOMERS

Happy customers

32
SAP

«Dealing with the St.Gallen authorities you might end up looking

bureaucratic, slow and inefficient.»

Oliver Christ, CEO SAP St.Gallen

33
AquaSwiss AG

«Reasonable taxes, friendly citizens, efficient and courteous

cantonal staff, access to International School and beautiful living
and working locations make the Canton of Thurgau a perfect
destination for an international company like Aqua Swiss to invest in
building it‘s corporate office and technology center.»

Sanjeev Varma, CEO AquaSwiss AG

www.aquaswiss.eu

34
Services and contact

35
 Our Services

- Free, comprehensive support and assistance of international

companies in the process of site evaluation and business start
- Valuable network: universities and research institutions, consulting
firms, banks,…
- Assistance in finding suitable office space, commercial space and land
- The opportunities for tax optimization in close cooperation with the tax
authorities and tax professionals
- Establishment of relationships to official authorities and guidance in
discussions (e.g. work and residence permits)
- Individually tailored programs visit
- Relocation Service for your international key players

36
Our services

Network with
Property search
key people

Support within Counseling for

the administration all companies

Assistance with
administrative
procedures

37
Thank you for your interest
Your contact

State of Thurgau
Economic development office

Natasa Rosic
Delegate

f: +41 58 355 55 05
natasa.rosic@tg.ch

St.GallenBodenseeArea
Zürcherstrasse 183
CH-8510 Frauenfeld
Switzerland www.sgba.ch

38