Opening in Italy or Switzerland: what changes

“Italy or Switzerland?” is the question that comes before every project. The honest answer is not a slogan: it depends on where you actually work, who runs the business and what you want to build. But some structural differences remain fixed, and knowing them in advance avoids choices that look convenient and then fail to hold. Here is what changes, point by point.

Legal form and capital

In Italy an Srl can be set up with symbolic capital (from EUR 1 in the simplified form), while an Spa requires EUR 50,000. In Switzerland the minimums are higher but the capital stays yours: it is liquidity in the company’s account, not a cost.

• GmbH: minimum capital CHF 20,000, fully paid in. Shareholders visible in the commercial register.
• AG: minimum capital CHF 100,000, of which at least CHF 50,000 paid in. Non-public shareholding, an institutional image.

The practical difference is not the number: it is that in Switzerland the paid-in capital becomes a working resource of the business, not a formality to be neutralised at once.

Tax burden on profit

Here the gap is real. In Italy a company pays IRES (corporate income tax) at 24% plus IRAP (regional business tax, around 3.9%, with regional variations), for an effective burden that commonly exceeds 27–28%.

In Switzerland the tax on profit and capital is cantonal and communal in addition to the federal one, so it varies greatly with the location. The effective rate on profit can fall in a significantly lower range, with differences of several points from one municipality to another. There is no single “Swiss rate”: there is the rate of the municipality where you domicile. This is why the choice of location is worth more than many accounting savings.

Social contributions and labour cost

In Italy the contribution wedge borne by the company is high: the employer’s INPS (social security) contributions often exceed 30% of the salary.

In Switzerland the employer’s social charges are lower and spread across several pillars: AHV/IV/EO (state pension, disability and income-compensation insurance) and ALV (unemployment insurance), split equally between employer and employee, BVG (occupational pension, depending on age and plan) and UVG (accident insurance). The company’s labour cost is generally lower, but it must be calculated: BVG rises with the employee’s age.

VAT and compliance

• Italy: standard VAT at 22%, a general obligation to hold a VAT number, mandatory electronic invoicing.
• Switzerland: VAT (MWST) with a standard rate of 8.1% from 2024, with mandatory registration only above CHF 100,000 of turnover. Below this threshold many businesses do not charge VAT.

On bookkeeping: in Switzerland full (double-entry) accounting is mandatory above CHF 500,000 of turnover; below that, simplified accounting of income/expenditure and assets is allowed.

Timing and bureaucracy

Registration with the Swiss commercial register typically takes place within 1–2 weeks of filing the deed, with a linear notary–bank–register process. In Italy the formal timings are quick, but the subsequent obligations (notifications, chamber of commerce, INPS/INAIL) are more layered.

The issue that decides everything: substance

Beware a frequent mistake made by those who reason “I’ll open in Switzerland to pay less”. A Swiss company holds up only if it has real substance: where the decisions are made, where the activity takes place, where the person who administers it resides. If the business is in fact managed from Italy, the Italian tax authorities can consider it tax-resident in Italy (foreign-dressing) and tax it there, wiping out every advantage.

Opening in Switzerland makes sense when the activity, the people and the decisions are — or become — genuinely Swiss. Otherwise, the correct structure might be Italian, or a combination of the two with clearly separated roles.

How to choose, in practice

• Mainly Italian activity and clients, managed from Italy → the Italian structure often makes more sense, or a gradual relocation path.
• International activity, holding, IP, a team that can reside in Switzerland → the Swiss structure expresses its advantages.
• A growing project with funding rounds ahead → consider the AG and the choice of location from the outset.

The decision is not ideological: it is a calculation on tax, contributions, substance and objectives. Doing it well in advance costs little; redoing it after an assessment costs a lot.

At SIH ONE we compare the two scenarios with numbers on your real case — tax burden by municipality, labour cost, substance required — and we tell you where it truly pays off, without taking sides.

Want the comparison in figures for your situation? Let’s talk about your project: the AI assistant answers immediately, and a professional gets back to you within a day.