Investment Guide by jolinmilioncherie



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Welcome to Schaffhausen

             Dear Reader

             Canton Schaffhausen combines attractive business benefits with unrivalled
             quality of life and a location right at the heart of Europe, in the economic pow-
             erhouse known as the Greater Zurich Area.

             Imagine living in an environment which others only get to enjoy on holiday – just
             35 minutes from Zurich International Airport and only 5 minutes from Europe’s
             largest waterfall. Imagine all of that and think about life in one of the world’s
             most attractive tax regimes.

             In short – Schaffhausen is the perfect location for your business and for your

             Our Investment Guide will outline key characteristics of the flourishing eco-
             nomic region which Schaffhausen has become. Alongside information on our
             multi-lingual and multi-cultural labour market, our first-class national and inter-
             national transport connections, our schools and quality of life, you will find de-
             tails on how to set up business operations here and how to acquire premises.
             All in all, we would like to give you a brief tour of why Schaffhausen will be good
             for your business and good for you.

             Our team is available to assist at all stages of your investment here, as many
             international companies have already experienced. We are fully focused on
             tailoring our servcies to your individual require-ments and ensuring you get the
             best solution for your business.

             Welcome to Schaffhausen!

             Marcus Cajacob, Executive VP, International Affairs
             Wirtschaftsförderung Kanton Schaffhausen

General Information                                       1
 Location and Demographics                                 1
   Located in the heart of Europe                          1
   Geographical Characteristics                            2
   Language                                                2
   Population                                              2
 Government Structure/Political and Financial Stability    3
   Legislative Structure                                   3
   Government Flexibility                                  3
   Political and Financial Stability                       3
 Transportation Infrastructure                             3
   Integrated Transportation Network                       3
   Zurich International Airport                            3
 Basel International Airport                               4
   Direct Flights from Basel                               4
   Train and Rail Links                                    4
   Roads and Highways                                      4
 Logistics and Customs Platform                            5
   Logistics Platform                                      5
   Customs Clearance                                       5
 Business and Industrial Base                              6
   Business Industries and Sectors                         6
   Sizes of Companies                                      6
 Labor Market                                              8
   Employee Salaries                                       8
   Payment of Wages and Employer Social Costs              8
   Holiday Regulations                                     8
   Work and Residence Permits                              8
   Additional Labor Resources                              9
   Economic stability                                      9
 Schools and Universities                                 10
   State-funded schools                                   10
   Private schools                                        10
   Universities, Research and Development                 11
 Living Expenses                                          12
   Living Expenses in General                             12
   Housing                                                12
   Automobiles                                            13
   Health Insurance                                       13
 Living Standard and Culture                              14
   High Living Standard                                   14
   Life in Schaffhausen                                   14
   Other neighboring cities                               15
 Utilities and Services                                   16
   Electricity                                            16
   Telephone                                              16
   Water                                                  16
Real Estate in the Canton of Schaffhausen                             17
 Rental of Property                                                   17
   Offices, Small Business and Industrial Space                        17
   Rental of Private Property                                         17
 Purchase of real estate by foreign nationals                         17
   Land                                                               18
   Purchase of Existing Buildings                                     18
 «Right-to-build» Property (Baurecht)                                 19
 Real Estate Database                                                 19

General Tax Information and Types of Swiss Companies                  20
 The Swiss Tax System                                                 20
   General Overview                                                   20
   International Comparison of Tax Rates                              20
   Exchange Controls                                                  20
 Types of companies                                                   20
   Corporations (AG)                                                  20
   Limited Liability Companies (GmbH)                                 20
   General Partnerships                                               21
   Limited Partnerships                                               21
   Other Types of Companies                                           21
   Establishing a Business in the Canton of Schaffhausen              21

The Economic Promotion of Canton Schaffhausen                         22
 Responsibility of the Economic Promotion Office                       22
   Ready to Assist                                                    22

Contacts and Additional Information                                   23

Appendix I                                                            24
 Steps and timetable                                                  24
   Timetable for Setting up a Company in the Canton of Schaffhausen   24

Appendix II                                                           25
 Overview of social costs                                             25

Appendix III                                                          26
 Comparison of total operating costs in Germany vs. Switzerland       26

Appendix IV                                                           27
 Why Schaffhausen?                                                    27
 Facts of the Business Location Schaffhausen                          27
   Most Important Demographics                                        27
   An Overview of the Strengths of the Canton Schaffhausen            27
   The Tax Situation in Canton Schaffhausen                           28
   Job Market and Mentality                                           28
   Property / Real Estate / Permission Practices                      28
                                                                                                                General Information

                        General Information

                        Location and Demographics

                        Located in the heart of Europe
                        The Canton of Schaffhausen occupies a prime location in the heart of Europe. Lo-
                        cated conveniently near key business cities like London, Paris, Frankfurt, Brussels,
                        Milan, Rome and Moscow, our location is ideal for doing business efficiently. Within
                        minutes of the Zurich International Airport, Schaffhausen serves as the perfect hub
                        for all international business travel.


                                                                                  Oslo            Stockholm


                                                                         The Hague
                                                                               Luxembuorg             Prague
                                                           Paris              Schaffhausen           Vienna

                                                                               Zurich                                             Bucharest
                                                                    470 km

                                                           780 km                  Mailand                         Belgrade
                                                      1020 km
                                            1200 km                                                                       Tiran

                              1600 km                                                                                         Athens
                                         1400 km

                        The Canton of Schaffhausen is part of the “Greater Zurich Area”, Switzerland’s eco-
                        nomic center and home to a vast number of international companies.

                        The Canton of Schaffhausen is Switzerland’s northern-most canton. It is located on
                        the German border and almost completely surrounded by Germany.

                        With Germany as its closest neighbor, Schaffhausen is uniquely linked to two eco-
          Switzerland   nomic regions: the European Union (EU) and Switzerland (CH). Schaffhausen,
                        which actively trades with EU nations, is also firmly embedded in the Swiss eco-
                        nomy. This offers advantages for greater business and market opportunities, while
                        allowing corporations to maintain a special tax status and operate within the Swiss
                        legal system.

    General Information

    Geographical Characteristics
    Located in Switzerland’s central plateau north of the Alps, Schaffhausen enjoys a
    very diverse geography. The canton has a combination of urban and industrialized
    development mixed with charming villages, farms, medieval cities and ancient Ro-
    man outposts.

    The primary language spoken is German. However, since there are many multi-lin-
    gual citizens, foreign residents and tourists, most people also speak English, French
    and/or Italian.

    Schaffhausen’s population is approximately 75,000. About one half of the populati-
    on lives in the city, while the other half is spread across the remaining 27 towns and
    villages throughout the canton.

                                                    Government Structure/Political and Financial Stability

                                                    Legislative Structure
                                                    Schaffhausen’s law-making body is a ‘legislative parliament’, which contains 60
                                                    deputies representing the different regions within the canton. Eight political parties
                                                    exist within the system.

                                                    Government Flexibility
                                                    The local government comprises only five members, which makes Schaffhausen
                                                    a small canton by administrative standards. Because of its size, the government
                                                    operates efficiently and decisions are quick and hassle-free. Access to government
                                                    officials is never a problem, and in contrast to larger, more bureaucratic locations,
                                                    conducting administrative business is painless.

                                                    Political and Financial Stability
                                                    On the political scene, the four biggest parties form a balanced coalition govern-
                                                    ment, which advocates favorable conditions for entrepreneurs and their companies.
                                                    Confidence in Switzerland is the consequence also of the strength of the Swiss franc
                                                    as one of the world‘s most stable currencies, and of the low Swiss interest rates.

                                                    Transportation Infrastructure

                                                    Integrated Transportation Network
                                                    Schaffhausen is strategically located within Central Europe and is the ideal base
                                                    from which to travel. Schaffhausen offers a fast, efficient transportation network and
Direct Flights from Zurich                          provides easy access to all major transport systems.

 Direct Flights                  No. of
 from Zurich                     Destinations       Zurich International Airport
 Europe                                115          Downtown Schaffhausen is about 35 minutes by car from Switzerland’s largest
                                                    airport, Zurich International Airport. As one of Europe’s main hubs, Airport Zurich
 Africa                                21
                                                    offers fast ticketing and check-in, easy-access to all gates, ample parking and duty-
 Near East / Middle East                7
                                                    free shopping. There are direct flights to every major business center world-wide,
 Far East / Australia                  12
                                                    and the frequency of daily flights offers added convenience.
 Latin America                         13
 North America                          6
                                                    There are direct railway connections from Schaffhausen to the Airport Zurich (S-16,
 Total Direct Flight                   174
                                                    hourly). Schaffhausen also offers the opportunity to check-in at the local train stati-
 Source:, January 2010                on for all Swiss Airports.

Partial List of Direct Flights and Travel Times
                        travel time/                       travel time/                      travel time/                     travel time/
                        hours                              hours                             hours                            hours
 Africa                                 Europe                            Paris                 1¼          North America
 Johannesburg              10 ½         Amsterdam              1¾         Rome                  1½          Atlanta                10
 Asia                                   Brussels               1¼         Stockholm             2½          Chicago               9½
 Bangkok                   10 ¾         Frankfurt               1         Middle East                       Los Angeles            11
 Hong Kong                  12          London                 1¼         Cairo                  4          New York              8½
 Singapur                   12          Madrid                 2¼         Istanbul               3          South America
 Tokio                     12 ½         Moscow                 3½         Tel Aviv              3¾          Sao Paulo              13

 Source:, January 2010

    General Information

    Basel International Airport

    Direct Flights from Basel
    Downtown Schaffhausen is about 90 minutes by car or by train from the EuroAir-
    port Basel-Mulhouse-Freiburg. Also this airport offers fast ticketing and check-in,
    easy-access to all gates, ample parking and duty-free shopping. There are direct
    flights to many European Business locations, and the frequency of daily flights of-
    fers added convenience.

     Direct Flights from EuroAirport Basel
     Algiers               Frankfurt             Lyon              Paris
     Alicante              Fuerteventura         Madeira           Prague
     Amsterdam             Hamburg               Madrid            Rennes
     Antalya               Heraklion             Malaga            Rhodos
     Barcelona             Istanbul              Manchester        Rome
     Berlin                Izmir                 Marrakech         Stuttgart
     Bordeaux              Copenhagen            Marseille         Teneriffa, Las Palmas
     Bratislava            Kos                   Menorca           Toulouse
     Brussels              Lanzarote             Munich            Warsaw
     Budapest              Las Palmas            Naples            Vienna
     Clermont-Ferrand      Lisbon                Nice              Zurich
     Constantine           Liverpool             Olbia
     Duesseldorf           London                Palma Mallorca

     Source:, January 2010

    Train and Rail Links
    There are InterCity and EuroCity connections in both Schaffhausen and Zurich.
    Schaffhausen is on the international line Milan-Zurich-Stuttgart with regular connec-
    tions. The German and Swiss railway companies operate international and are both
    represented in Schaffhausen.

    Roads and Highways
    Even during peak commuting times, local traffic moves quickly and delays are vir-
    tually nonexistent. Proximity to the workplaces minimizes travel time and reduces

    The A4 highway runs through a tunnel underneath Schaffhausen. This main artery
    quickly connects Schaffhausen to Zurich and the A1 highway, which crosses Swit-
    zerland from east to west. The German Autobahn can be reached within ten minu-
    tes and links Schaffhausen to all high-speed highways to key cities like Stuttgart,
    Frankfurt, Munich, Berlin and the north of Europe.

Travel Times from Downtown Schaffhausen
 Destinations                By Car                      By Train
 In Switzerland:
 Zurich Airport                        35 Min.                      45 Min.
 Zurich Main Train Station             45 Min.                      38 Min.
 Basel                                1 ½ Std.                      1¼ Std.
 Bern                                 1 ¾ Std.                       2 Std.
 Geneva                               3 ½ Std.                      3 ¾ Std.
 In Germany:
 German Border                         10 Min.                      10 Min.
 Singen                                20 Min.                      15 Min.
 Stuttgart                            1 ½ Std.                       2 Std.
 Munich                               3 ½ Std.                      3 ¾ Std.
 Berlin                                 8 Std.                       9 Std.
 Frankfurt                              4 Std.                       4 Std.

Logistics and Customs Platform
Logistics Platform
Because of its location, the Canton of Schaffhausen has been a trade and transpor-
tation center for centuries. With the advent of technology and modern-day indus-
tries, Schaffhausen continues to play a vital role in the import and export of every
type of commodity in Switzerland and the EU.

Schaffhausen has a well-developed network of service providers (e.g., transporters,
haulage companies and warehouse facilities), all of which have years of experience
in managing every aspect of logistics and trade. For information on specific servi-
ces and import/export agents, contact the Economic Promotion Office of Canton

Customs Clearance
Companies exporting goods into EU countries can take advantage of a special ser-
vice to help speed up customs processing. A computerized system, which is used
in both Switzerland and Germany, facilitates importing and exporting to and from
Switzerland, Germany and all EU countries. With this system, companies can save
time and money by reducing their costs and minimizing delays.

Because of its strategic location along the German border, Schaffhausen has 15
customs offices. It is possible to do all the custom formalities directly from the
customer’s office.

    General Information

    Business and Industrial Base

    Business Industries and Sectors
    Schaffhausen’s prominent industries are the following: Machine Building, Auto-
    mation, Process Controls, Packaging, Pharmaceuticals, Medical Instruments and
    Equipment, Food and Beverage Processing, Electronics, R & D, Chemicals, Jewel-
    ry Making, Printing Machines and Publishing, Management Consulting, Professio-
    nal Cameras, Engineering Consulting, Software and Computing Services.

    Sizes of Companies
    Large companies with 100 or more workers employ about 30 percent of the availa-
    ble business workforce in the Canton of Schaffhausen. Medium and small compa-
    nies employ the remaining 70 percent.

    Examples of newly established International Companies (2000 – 2009)

                              Abbott Laboratories                                     Iron Mountain
                              Production of Stents,                                   Archiving,
                              Manufacturer                                            Shared Service Center

                              Accenture Global Services                               John Deere
                              Consulting,                                             Agriculture Equipments,
                              Shared Service Center                                   Shared Service Center

                              AGCO International                                      Kennametal Europe
                              Agricultural Equipments,                                Hard Metal Tooling,
                              HQ Europe                                               HQ Europe

                              Albany International                                    Makhteshim-Agan Europe
                              Zulieferer Papierindustrie,                             Agrochemical Products,
                              HQ Europe                                               HQ Europe

                              Card Guard                                              Tektronix
                              Suplier for Paper Industry,                             Measuring Equipments,
                              HQ Europe                                               Shared Service Center

                              Cilag                                                   Terex Global
                              Pharmaceuticals,                                        Construction Equipments,
                              Manufacturer                                            HQ Europe

                              Citrix System International                             Timberland
                              Software,                                               Apparels,
                              HQ EMEA                                                 Shared Service Center

                              ConvaTec Int. Services GmbH                             Tyco Electronics
                              Life Sciences Products,                                 Electronic Products
                              HQ Europe

                              Covidien                                                Tyco International Services GmbH
                              Life Sciences Products,                                 Fire, Security

                              DSM Composite Resins                                    Unilever Supply Chain Company
                              Chemicals,                                              Food an Non-Food,
                              HQ Europe                                               Shared Service Center

                              Hercules International                                  Wal Mart
                              Chemicals,                                              Retail,
                              HQ Europe                                               Holding

Partial list of the top companies in the Canton of Schaffhausen
 Companies                                               Type, Technologies
 Machinery, Metal and Plastics
 AlcanTechnology & Management AG                         Aluminum and Metal R&D, Packaging Services
 Georg Fischer AG                                        Automotive, Piping Systems
 Kebo AG, Fostag AG, smc AG, Renggli AG, Stamm AG        Plastics and Mold Making
 Phoenix Mecano Komponenten AG                           Electrical Housings and Components
 SIG Combibloc Group AG                                  Packaging of liquids
 Electronic and Electrical Equipment, Test and Measurement
 ABB Schweiz, CMC Low Voltage                            Electrical Protection Apparatus
 Bircher AG                                              Sensors, Switches, Process Controls
 Marquardt GmbH                                          Switches, Sensors, System solutions
 Murrelectronic AG                                       Industrial Electronic Component Systems
 Trielec AG                                              Low Voltage Switch Gear
 Medical Equipment and Instrumentation
 Alcon Grieshaber AG                                     Eye Surgery Instrumentation and Equipment
 Berchtold GmbH                                          Medical Technology
 Metoxit AG                                              Oxidized Ceramics
 Storz Endoskop GmbH                                     Endoscopes Boroscopes and Endoscopic Devices
 Chemicals, Pharmaceuticals, Hospital Supplies and Ceramics
 Abbott Laboratories                                     Stents and catheters for vascular interventions
 BASF Construction Chemicals (Schweiz) AG                Research and Development, Performance Flooring
 Cilag AG (Johnson & Johnson)                            Pharmaceuticals
 IVF Hartmann AG                                         Gauze Bandaging, Physician Hygiene Products, Feminine Prod.
 Merck Eprova AG                                         Pharmaceuticals and special Chemicals
 Food and Beverage
 Falken Brewery                                          Beer and Beverage Processing
 Rimuss Cellars                                          Wine and Beverage Processing
 Unilever Schweiz AG                                     Food Processing
 Watch Making, Jewelry, Silverware and Optical Products
 Furrer-Jacot AG                                         Jewelry
 IWC International Watch Company Co. AG                  High-Quality Watches
 Jezler & Cie. AG                                        Cutlery, Silver Products
 Moser Schaffhausen AG                                   High-Quality Watches
 EDV, Software Services
 Citrix System International GmbH                        Application Server Software
 Parallels International GmbH                            Software
 Trapeze ITS Switzerland                                 Traffic Control and Information Systems
 Service Companies, Headquarters / Shared Service Centers
 AXA-Winterthur-, Zürich-Versicherung, Swiss Life etc.   Insurance Providers
 UBS, Credit Suisse, Kantonalbank etc.                   Banking Services
 Consulting-, Certified Accounting and Tax Consulting-,
                                                         Consulting, Services
 Auditing Firms
 Service Companies, Headquarters / Shared Service Centers
 John Deere International GmbH                           Agricultural Machinery
 Tyco International                                      Fire, Security

    General Information

    Labor Market

    Employee Salaries
    The following table shows approximate salary ranges for typical positions in various industrial, administrative, engineering and
    management capacities.

    Salary Ranges
     Type of Position                                                      in US$                      in CHF
     Uneducated Skilled Labor                                              43’700 – 59’200             45'000 – 61’000
     Educated and Trained in Mechanics                                     52’400 – 70’900             54'000 – 73’000
     Educated and Trained in Electronics                                   55’300 – 75’700             57'000 – 78’000
     Secretary, 2 Languages, Experienced                                   50’500 – 70’900             52'000 – 73’000
     Experienced Secretary, 3 Languages                                    58’300 – 81’500             60'000 – 84’000
     Experienced Bookkeeper                                                72’800 – 106’800            75'000 – 110’000
     Experienced Controller                                                74’800 – 126’200            77'000 – 130’000
     Inexperienced Engineer                                                70’900 – 102’000            73'000 – 105’000
     Experienced Engineer, 2 Languages                                     81’500 – 116’500            84'000 – 120’000
     Lower-Level Manager                                                   68’000 – 92’200             70'000 – 95’000
     Middle-Level Manager                                                  87’400 – 126’200            90'000 – 130’000
     Upper-Level Manager                                                   116’500 - +                 120'000 and more

     Source: ProPers, Neuhausen – January 2010 – Exchange Rate 1 US$ = 1.03 CHF – January 2010

    Payment of Wages and Employer Social Costs
    Wages are usually paid 12 or 13 times per year.

    Employer social costs are approx. 17%. This includes all taxes for social security, pension, unemployment insurance, disability
    insurance, holidays and vacation (see Appendix II for more information.)

    Holiday Regulations
    Four weeks of paid vacation is the minimal length for employees working for private companies. The average length of vacation
    is approx. 5 weeks/year, depending on the age of the employee.

    Work and Residence Permits
    An individual working in Switzerland must have a residence permit, which normally includes a work permit. It is fast and easy
    to obtain approval for permits, especially for individuals coming from EU countries. It is usual for work permits to be acquired
    within a week. For individuals coming from outside the EU region the approval for permits are decided at federal level within a
    few weeks.

    To obtain a work permit, an individual must highlight his or her special qualifications. At an individual’s request, the Economic
    Promotion Office of Canton Schaffhausen can quickly check if all requirements have been met.

Additional Labor Resources
Due to its strategic border position with Germany, the Canton of Schaffhausen is
able to recruit workers from the labor pool there.

In cases where people with special skills can not be found in the Canton of Schaff-
hausen, or if it is essential for a company’s growth, there is no limit to the number
of new employees a company may recruit from nearby German region, other Swiss
cantons or EU countries.

Economic stability
For 60 years, the social partners and both sides of industry have been committed to
the peaceful settlement of conflicts. This peace agreement has created an excepti-
onally motivated working climate. Strikes are non existing.

     General Information

     Schools and Universities

     State-funded schools
     Children start at primary school or first stage (Primarschule) aged 6 to 7. Entry to
     kindergarten takes place 2 years previously, with the first year taken on a voluntary
     basis and only the second year obligatory. After six years in primary and junior or
     first stage, children advance to secondary education, either in a Realschule or a
     Sekundarschule, depending on their abilities and preferences.

     Realschule takes three years and generally leads on to vocational training/an app-
     renticeship spanning a further two to four years, with regular attendance at a voca-
     tional college to complement on-the-job training.

     Sekundarschule offers progression, after two years, to the Kantonsschule (acade-
     mically-oriented college/grammar school), or, after three years, progression to a
     Diplommittelschule or to a higher-level apprenticeship.

     Pupils who do not secure an apprenticeship following completion of Realschule or
     Sekundarschule can attend a year-long preparatory course at a vocational training

     Successful completion of the Maturitätsprüfung at the end of four years of study at
     the Kantonsschule (academically-oriented college/grammar school) provides the
     basis for progression to university, e.g. in Zurich, St. Gallen, Bern, Basel, Neuen-
     burg, Freiburg, Lausanne, Genf and the world-famous Eidgenössische Technische
     Hochschule (ETH) in Zürich or Lausanne, or alternatively to teacher training college
     - Pädagogische Hochschule.

     Those who successfully complete their training as an apprentice can enrol at a
     Fachhochschule, which offers full-time higher education in applied subjects and
     disciplines, or part-time study at an HKG commercial & industrial college, (Höhere
     Kaufmännische Gesamtschule).

     Canton Schaffhausen offers opportunities at all levels up to entry into a technical or
     commercial polytechnic institute – Fachhochschule - or into a university.

     Private schools
     International School of Schaffhausen
     The International School of Schaffhausen ISSH accepts children aged 3 years and
     older. The school is accredited by the IBO - International Baccalaurate Organiza-
     tion - and currently offers high-quality education from kindergarten through to the
     International Baccalaurate. Tuition is in English.

     Rudolf Steiner Schule Schaffhausen
     The Rudolf Steiner Schule Schaffhausen (offering the Waldorf approach to teaching
     and learning) is dedicated to offering its pupils as holistic an education as possible,
     blending a wide spectrum of intellectual, artistic and craft-based subjects.

     The school is recognised by the state authorities and accommodates pupils from
     play groups throught to Grade 12 (Year 12). Following by a course lasting 1.5 years

pupils can achieve the Matura exam, which is required for entry to university.

Universities, Research and Development
There are five universities and a specialist technical university within an hour’s drive
of Schaffhausen: the universities of Zurich, St. Gallen, Basel and the German univer-
sity of Konstanz (Constance) as well as the specialist technical university in Zurich.

Under the direction of the Hochschule für Wirtschaft Zürich HWZ, the Kaufmänni-
sche Verband Schaffhausen offers the Bachelor in business administration with the
course of studies General Management.

The IPI International Packaging Institute in Neuhausen am Rheinfall offers the first
Master of Engineering in Packaging Technology and a Certificate Course in Pa-
ckaging Technology at Bachelors level, which serves as a cross entry from any
technical discipline to the packaging sector as well as a preparation for the Master
course. IPI also offers a wide range of seminars targeted specifically at the pa-
ckaging sector.

The teacher training college - Pädagogische Hochschule in Schaffhausen – offers a
range of programmes to accommodate entrants with different levels of prior achie-
vement and qualifications.

The research and development activity of local companies, both for their own pur-
poses and on behalf of third parties, is a significant element in the economy of
Schaffhausen. Examples of this local resource include Unilever in the food sector,
Alcan Technologies in the field of aluminium and packaging technologies, Cilag AG
and Merck Eprova AG in the healthcare scetor, as well as SIG Pack in packaging

     General Information

     Living Expenses
     Living Expenses in General
     Living expenses in Schaffhausen are similar to those in the larger metropolitan are-
     as, however they are usually lower than the Swiss national average and clearly
     below the living expenses in major Swiss cities (Zurich, Geneva, Basel).

     Because Switzerland is a small country, land availability is limited. This is reflected
     in home purchase and rental prices. The Swiss average for housing costs repre-
     sents about 20 percent of total household expenses. Schaffhausen offers the most
     affordable housing and has the lowest prices of the major business locations in



      Object of comparison (for sale) Family-house with 5 rooms, middle price segment according to
      Wüest&Partner, Immo-Monitoring 2010/1, p. 156f.

Schaffhausen has clearly the lowest rates for car taxes and administrative costs
within Switzerland.

Health Insurance
There are a number of different packages available from health insurance providers,
offering variations in the level of contribution (e.g. by increasing your voluntary ex-
cess) and in the range of services covered (e.g. category of hospital, inclusion of
alternative therapies). Premiums in rural areas are often lower.


Annual premium for basic package for a family of 41 (Source:, 2010)

1 Male, born 1969, franchise 1500.-/excluding accident coverage, Female 1971 franchise
1500.-/including accident coverage, Children born 2003 und 2005/including accident coverage,
Health Insurance provider: Assura

     General Information

     Living Standard and Culture
     High Living Standard
     Schaffhausen residents enjoy a high standard of living. Among the most envied in
     the world, residents benefit from a very low crime rate, a thriving economy and free-
     trade system, solid banking and tax systems, cultural and religious tolerance, beau-
     tiful surroundings and an efficiently-run government. World-class entertainment,
     fine cuisine, and arts are widely available for culture lovers. Whether for fun or com-
     petition, every sporting and outdoors’ enthusiast can find year-round recreation.

     Life in Schaffhausen
     Schaffhausen’s residents enjoy a distinctive culture. Traditional and classical ar-
     chitecture are merged with contemporary living, multiple shopping and cultural ac-

        Landscapes and the river Rhine: Schaffhausen is proud of its combination
        of natural beauty and breath-taking landscapes, in addition to its rich culture
        and historic prominence. The most beautiful passages of the river Rhine, inclu-
        ding Europe’s largest waterfall, attracts over one million visitors per year.

        Historic prominence: History enthusiasts can soak up architecture and
        remains from the Middle Ages by visiting beautiful, walled cities, castles and
        fortresses. Schaffhausen, Stein am Rhein, Munot Fortress and Schloss Laufen
        are especially charming examples of well-preserved sites surrounded by a cos-
        mopolitan culture.

   Sports and leisure: The Canton of Schaffhausen offers all kinds of sports and
   leisure activities. Golf enthusiasts can find five challenging golf courses within
   one hour of downtown Schaffhausen. There are mountain-biking routes and
   miles of cycle paths linking the city and the countryside together. For hikers
   and nature lovers, Schaffhausen has beautiful, rolling hills, forests and open
   countryside to roam and dis-cover. The river Rhine and nearby Lake Cons-
   tance offer opportunities for various types of water sports. The Alps, which are
   only a short drive away, offer some of the best snow sports, mountain climbing
   and hiking areas in the world.

   Theaters: Classic plays, ballets, musicals, operas and dramas, along with
   performances from international orchestras can be seen at Schaffhausen’s
   Stadttheater. Offering smaller-scale productions, regional theaters perform
   regularly and are fun to experience and enjoy.

   International Bach Festival: Schaffhausen hosts the International Bach Fes-
   tival. This is held every three years and was established to bring together and
   celebrate the music of the world’s best-known Baroque composers. World-
   class soloists, choirs and orchestras give grand performances to music lovers
   who come from all over the world.

   Schaffhausen Jazzfestival: Every year in May, this festival offers the top of
   the national jazz and improvisational music in the Kammgarn Center of the City
   of Schaffhausen.

   Museums and art exhibits: For those who enjoy discovering art, Schaffhau-
   sen offers several wonderful museums to experience. Those with an eye for
   the contemporary are attracted to the world-famous Hallen für Neue Kunst
   (Museum for Contemporary Art). Several charming village museums contain
   rich histories and ancient documents.

   Fine dining and winemaking: Schaffhausen has several excellent restau-
   rants offering regional or inter-national cuisine. The Klettgau region, which is
   famous for its vineyards growing majestically along its hill-sides, is the largest
   winemaking area in the German-speaking part of Switzerland.

Other neighboring cities
Schaffhausen benefits from its proximity to other cities in Europe such as, Zurich,
Geneva, Stuttgart and Munich which have their distinctive cultures and activities
and are easy to reach by both road and rail.

     General Information

     Utilities and Services
     Schaffhausen generates its own electricity, but it also receives electricity from other
     Swiss and European power plants. A modern network of powerlines ensures ef-
     ficient distribution. Costs run according to voltage, season and peak vs. off-peak

     Switzerland has one of the most sophisticated telecommunications systems in all of
     Europe and offers a variety of first-rate options.

     The mobile phone network supports all new technologies such as HSCSD, GPRS,
     UMTS and Public Wireless LAN (available in over 100 heavily frequented locations).
     The mobile network of the market leader covers 99% of the populated area within

     The river Rhine is the source of the region’s water supply and provides plenty of
     high-quality drinking water throughout the region.

                                         Real Estate in the Canton of Schaffhausen

Real Estate in the Canton of Schaffhausen
The three most common types of real estate properties are the following: rental,
purchased and ‘right-to-build’ properties. The following sections illustrate the diffe-
rences between these options.

Rental of Property

Offices, Small Business and Industrial Space
In Schaffhausen rental properties are available at low cost. Rental rates vary ac-
cording to location, unfinished vs. finished interiors, and the length of the rental
contract. The prices are approximately 20 to 80 percent less than those in the
neighboring economic regions of Zurich.
 Type of Building                                 Price in CHF/m2 per year
 Office                                 Unfinished Interior         Finished Interior
 Up to 120 m2 (urban)                       130 - 180                 150 - 250
 200 m2 – 1,000 m2 (suburban)               130 - 220                 150 - 260
 Rural                                       80 - 160                 120 - 200
 Small Business
 Ground Floor                                80 - 120                 100 - 140
 Upper Floors                                70 - 100                 90 - 120
 Small Facility                              70 - 100                 80 - 120
 Large Facility                              50 - 70                  70 - 100

 Source: Economic Promotion Canton Schaffhausen

Rental of Private Property
Renting space in a private building or in renting houses in Schaffhausen is extremely
inexpensive in comparison to other cantons in Switzerland and particularly to cities
such as Zurich, Lausanne or Geneva.

Purchase of real estate by foreign nationals
Foreign nationals from EU/EFTA countries and in possession of an L- or
B-Residence Permit and who are living in Switzerland do not require sepa-
rate authorisation when they wish to purchase real estate. If the foreign national
subsequently relocates away from Switzerland, there is no requirement for them to
dispose of the real estate.

Foreign nationals from non-EU/EFTA countries and in possession of an L-
or B-Residence Permit do not require separate authorisation when they wish to
purchase real estate for their own use and in the place of their registered domicile.
This principle also applies to the purchase of land for residential accommodation,
as long as building work commences within one year of purchase. A foreign natio-
nal who is resident in Switzerland is also allowed to purchase land for commercial
purposes, without separate authorisation. Real estate may not be purchased for the
construction or rental or sale of private residential accommodation.

     Real Estate in the Canton of Schaffhausen

     Foreign nationals from EU/EFTA countries and in possession of a G- Permit
     do not require separate authorisation when they wish to purchase real estate for
     commercial premises or a second home, whether apartment or house for their own
     use, in the region in which they work. The purchaser must occupy the property
     themselves for as long as they are cross-border commuters working in Switzerland.
     The property, or parts of it, must not be rented to third parties. The purchase of
     other real estate is subject to separate authorisation (see section on foreign natio-
     nals resident abroad).

     Foreign nationals resident abroad do not require separate authorisation to buy
     real estate for commercial purposes. The property may be rented to a third party.
     Real estate may not be purchased for the construction or rental or sale of private
     residential accommodation.                                                                         Further information regarding the
                                                                                                        purchase of real estate by foreign na-
     Legal entities registered abroad do not require separate authorisation to buy                      tionals resident abroad can be found
     real estate for commercial pur-poses. Rental to third parties is permitted. Similarly,             at
     the purchase of appropriate private residential accommodation e.g. for staff does
     not require separate authorisation. Direct investment exclusively in residential ac-
     commodation is not allowed, however. The ceiling for participation in real estate
     acquisitions for private residential accommodation and transacted by Swiss-domic-
     iled companies is set at one third of the total invest-ment required.

     Should you require further clarification, please contact the Economic Promotion
     Team (Wirtschaftsförderung) of Schaffhausen.

     Prices for land vary according to location, type of zoning and development, if any.
     The prices of land in Schaffhausen are illustrated in the table below:

      Undeveloped Land1)                                                         Price in CHF/m2
      Office                                                                           100 - 600
      Small business                                                                   90 - 300
      Industrial                                                                       90 - 400

      1) Has access to municipal utilities (e.g., electricity, water and sewer), however, no building

     Purchase of Existing Buildings
     Prices of existing buildings depend on location and condition. Typical prices are
     shown in the table below:

      Existing Building                                                           Price in CHF/m3
      Office (finished interior)                                                        300 - 420
      Small business (various levels)                                                 250 - 450
      Industrial (no basement)                                                        120 - 250

«Right-to-build» Property (Baurecht)
In Switzerland there is a special type of land usage known as ‘right-to-build’ land.
A company may purchase the rights to build a structure on this kind of property,
without actually purchasing the property itself. Official parties often sell their proper-
ties only in form of «right-to-build», because they do not wish to lose their long-term
land rights. For ‘right-to-build’ properties, the following general conditions apply:

   The current owner signs a public contract with the tenant for a minimum of 30
   to a maximum of 100 years.
   At the end of the contract period, it may be renewed. However, if the parties
   agree not to renew, the owner may pay the value of the building (or a percen-
   tage) back to the tenant. This is stipulated in the original contract.
   The parties may make mutually agreed upon changes to the contract at any

The City of Schaffhausen and several nearby municipalities offer excellent oppor-
tunities and attractive conditions for available real estate. In some locations, it may
also be possible to purchase the land, if desired.

Real Estate Database

The Economic Promotion of Canton Schaffhausen currently owns and maintains
a comprehensive computer database containing almost all known properties in
Schaffhausen’s economic region. Upon request, sites matching a company’s spe-
cific requirements can be quickly accessed. Information such as location, amount
of space, price and availability can immediately be quoted right over the phone or
by e-mail.

The Economic Promotion of Canton Schaffhausen can also forward hard copies of
specific sites to companies. This convenient service allows a company to instantly
established whether or not suitable real estate exists.

     General Tax Information and Types of Swiss Companies

     General Tax Information and Types of Swiss

     The Swiss Tax System

     General Overview
     As a result of the three levels of government (federal, cantonal and municipal), there
     are three corresponding taxes: federal, cantonal and municipal.

     Federal tax law is standard throughout Switzerland. Cantonal and municipal taxes
     can vary considerably among the different cantons. Municipal taxes are levied as a
     multiple of cantonal taxes and vary from district to district.

     International Comparison of Tax Rates
     Switzerland offers one of the lowest rates of taxation and social security contribu-
     tions of all the industrialized countries.

     Exchange Controls
     There are no exchange controls. The majority of currencies are free for trade.

     Types of companies

     Generally, no permission is required to establish a business presence in Switzer-
     land. However, as a rule, any commercial, industrial or other activity conducted ac-
     cording to business practice must be entered in the canton’s register of commerce.

     Corporations (AG)
     The most common type of business entity is a company limited by shares (Aktienge-
     sellschaft - AG). To establish an AG, several requirements have to be met. Foreign nati-
     onals may own all the shares. Swiss law does not provide for any nationality or residen-
     cy requirements with respect to the incorporation, but at least one person of the board
     members or director must be domiciled in Switzerland. The minimum capital for an AG is
     CHF 100,000. Twenty percent of the share capital, at least CHF 50,000, must be

     Limited Liability Companies (GmbH)
     The limited liability company (Gesellschaft mit beschränkter Haftung, GmbH)
     has also become an attractive alternative. The minimum capital for a GmbH is
     CHF 20,000. The maximum capital can be more than CHF 2,000,000 (revision
     2008). The company capital is divided into quotas. The amount of each of these
     quotas may differ; however, the quota must be at least CHF 100 or a multiple of it.
     Name, nationality and the holdings of quota holders are listed in the Commercial
     Register. Swiss law does not provide for any nationality or residency requirements
     with respect to the incorporation, but at least one quota holder must be Swiss re-
     sident. In the USA, the GmbH may qualify as a partnership under US tax law. This
     may offer some interesting international tax planning opportunities.

General Partnerships
Another type of business entity is a company of two or more individuals who ope-
rate a commercial business (Kollektivgesellschaft). They are jointly liable for the pro-
ject, without limit. This form of business organization is not available to corporate

Limited Partnerships
Another type is a company of one or several partners where liability is limited to the
capital contribution only (Kommanditgesellschaft). Limited partners may be indivi-
duals of legal entities; and at least one partner must be fully liable for the obligations
of the firm.

Other Types of Companies
Some other types of companies include sole proprietorship and cooperatives; how-
ever, since they are not very interesting to investors, they are not described here in
more detail.

Establishing a Business in the Canton of Schaffhausen
A business is an institution, which anticipates longterm commercial activity. Sin-
gle and collective companies must register when they have revenues over
CHF 100,000. Corporations, limited liabilities and general partnerships must regis-
ter when they are established.

It is relatively fast and easy to establish a company in Canton Schaffhausen. Ty-
pically the entire process can be completed within six weeks, and in special cir-
cumstances, this time may be significantly reduced (see Appendix I for additional

     The Economic Promotion of Canton Schaffhausen

     The Economic Promotion of Canton

     Responsibility of the Economic Promotion Office

     Ready to Assist                                                                        Economic Promotion
     The goal of the Economic Promotion Team of Canton Schaffhausen is to be the link       Canton Schaffhausen
     between the prospective investor and Schaffhausen’s local and state governments        Herrenacker 15
     and business entities. The Economic Promotion Team represents your interests as        CH-8200 Schaffhausen/Switzerland
     an investor by gathering information, presenting options, negotiating and              Phone:   +41 52 674 03 03
     gaining commitments.                                                                   Fax:     +41 52 674 06 09
     The Economic Promotion Team of Canton Schaffhausen acts as a partner to simp-
     lify the process of establishing a company’s new operations. The team acts also as
     a coordination, negotiation and implementation partner.

     An assigned project representative works personally with each prospective inves-
     tor. From the first contact throughout the entire process, the representative assists
     you in clarifying all aspects and procedures. The entire Economic Promotion Team
     is available at every step of the way to answer questions and to provide the best
     possible information in a professional and timely manner.

     Some of the ways in which the Economic Promotion of Canton Schaffhausen can
     assist you are listed below:

        Establishing a company in the Canton of Schaffhausen
        Handling all aspects of economic promotion policies and procedures
        Securing employee work permits
        Securing permission for construction
        Getting answers to tax or legal questions
        Submitting bids for real estate sites
        Assisting with contract negotiations
        Assisting in hiring and employment issues

     The Economic Promotion Team of Canton Schaffhausen is not a cantonal office but
     a management consultancy with direct connections to the City of Schaffhausen, all
     surrounding municipalities, the Canton of Schaffhausen, business agencies and the
     business community.

Contacts and Additional Information

Marcus Cajacob              Thomas Holenstein              Ueli Jäger
Dipl. Ing.                  lic. rer. pol.                 lic.oec. HSG
Executive VP,               Official Chief Representative   Project manager
International Affairs       of Canton Schaffhausen

Beate Zaugg                 Irene Roost
Administration              Administration

     Appendix I

     Appendix I

     Steps and timetable

     The steps involved and the time required to establish a company in the Canton of Schaffhausen are shown in the table below.

     Timetable for Setting up a Company in the Canton of Schaffhausen

      Steps Involved                                                            Required Number of Weeks1)
                                                                                   1        2        3       4   5         6
      Registration and name approval
      Preparation of papers for incorporation
      Deposit of capital with credit institution
      Public deed of incorporation
      Publication in official gazette
      Commercial registry and national registry of collective persons
      Registration as taxpayer

      1) In special circumstances, the timetable may be reduced to two weeks.

                                                                                                              Appendix II

Appendix II

Overview of social costs

The following table shows the standard social costs in percentages paid by employer and employee in the Canton of

 Description                                                                    Employer (in %)     Employee (in %)
 Pension and death insurance (AHV)                                                    4.200              4.200
 Disability insurance (IV)                                                            0.700              0.700
 Support for persons in military                                                      0.150              0.150
                                                                                      1.000               1.000
 Unemployment insurance (ALV)
                                                                                (bis CHF 126‘000)   (bis CHF 126‘000)
 Retirement benefit (approximately)                                                    6.500              6.500
 Social benefit                                                                        0.140              0.070
 Family compensation fund                                                             1.600              0.000
                                                                                                      1.200 Ladies
 Sick day insurance
                                                                                                    0.800 Gentlemen
 Insurance for accidents during working hours                                     0.100 – 4.500          0.000

 Insurance for accidents during non-working hours
                                                                                     0.000          0.800 – 3.000
 Total                                                                          14.390 – 18.790     14.390 – 16.820

 Source: ProPers AG, Recruiting, 8212 Neuhausen am Rheinfall – January 2010

     Appendix III

     Appendix III

     Comparison of total operating costs in Germany vs.
     The following table shows a comparison and total percentage difference of similar
     companies in Germany and Switzerland. Data compare the actual days worked,
     salaries and social costs of each country. The results show that operating a com-
     pany in Switzerland is more cost effective by over 5%.

                                                  German company   Swiss company
      Total Days / year                           261 d            261 d
      National holidays / year                    11 d             8d
      Vacation / year                             30 d             20 d
      Sick days / year                            12 d             8d
      Actual days worked                          208 d            225 d

      Hours worked / day                          7.00 h           8.40 h
      Breaks / day                                0.45 h           0.50 h
      Productive hours / day                      6.55 h           7.90 h
      Productive hours / year                     1’362 h          1’778 h

      Annual costs / Salaried employees           EURO             CHF
      Hourly wage in currency of country          14.68            23.75
      Payable hours worked / year                 1’827 h          2192
      Gross wages / year                          26’820           52’070
                                                  13’866           13’069
      Social costs
                                                  (51.7 %)         (25.1 %)
      Total salary / year                         40’686           65’139

      Total salary for productive hours worked/
                                                  29.86            36.65
      Total salary in EUR
                                                  29.86            22.21
      (Exchange rate: 1 CHF=1.65 EURO)
      Difference between Germany and
                                                                   - 25.7%

      Exchange Rate                               1                1.65

      Source: Ecnonomic Promotion Canton Schaffhausen

                                                                     Appendix IV

Appendix IV

Why Schaffhausen?
Facts of the Business Location Schaffhausen
Most Important Demographics
  Population: 75,000; Employment: 35,300.
  Average Income Per Capita: approx. CHF 55‘100.--
  Physical Location: The only Swiss Canton completely north of the Rhine
  Major Industries: Packaging Technology, Machine and Equipment Building,
  Construction, Craft Engineering, Electronics and Automation, Medical Equip-
  ment, Healthcare, Pharmaceutical, Software, Management and Consulting.

An Overview of the Strengths of the Canton Schaffhausen
  High-Tech Region: strong, diverse industries offering many opportunities
  to find future business partners in key industries, allowing for knowledge and
  technology transfer.
  Strategic Border Position with Germany: many CH- and EU-used consul-
  tants in the service industry (agents, trustees, banks, insurance); a work force
  is available to Canton Schaffhausen from Germany (i.e., “frontier workers”).
  Traffic/Logistics: Located at the end of Germany’s Autobahn network; Parti-
  cularly strong customs /tariff logistics.
  Close to Zurich: Zurich Airport in 35 minutes, the international city of Zurich
  by train in 38 minutes; strong relationships to the University of Zurich and ETH
  (Federal Institute of Technology).
  Short Travel Times: Singen (20 car-min./15 train-min.), Zurich Airport
  (35/45), Downtown Zurich (45/38), Basel (90 /75), Stuttgart (100/120), Geneva
  Highest Living Quality: Rhine River Valley, biggest waterfalls in Europe (Rhine
  Falls), largest area for winemaking in Swiss-German region, practically a
  suburb of Zurich, Schaffhausen and Stein am Rhine - two historic cities with
  national significance, Lake Constance only a few minutes drive away, active
  and rich cultural living, five 18-hole golf courses within 30 minutes, numerous
  activities available for leisure
  Living Costs: various elements are far lower than the Swiss national average.
  Mentality and Business: Region with strong identity and enthusiasm for
  Schaffhausen, involved, active corporate structure, economically friendly, inde-
  pendent and liberal legislation.
  Power in Smallness: open communication channel with Canton and city
  governments, very fast decision-making, flexible administration, customized
  solutions, fast support with site selection, own tax authorities.

     Anhang IV

     The Tax Situation in Canton Schaffhausen
        Holding: most favorable legislation of all Swiss Cantons.
        Inheritance and Gift Tax: these taxes were abolished for direct descendants
        and marital partners.
        Corporate Taxes: below the Swiss national average, lower tax status for
        special enterprises (for auxiliary and domicile companies) available.
        Financial Incentives: strong in cases where jobs are created, investments in
        innovative projects is made or know-how is brought in; Tax privilege allowance
        up to 10 years for Cantonal taxes. On a national level, special fiscal opportuni-
        ties exist, which can be negotiated on a case by case basis.
        Taxes for Employees: at the Swiss national average; relief for relocating em-
        ployees, managers and specialists is possible on a case by case basis.
        Individual Tax Agreements: a flat rate tax for persons without direct employ-
        ment is possible; all tax relief arrangements can be negotiated ahead of time
        with the Schaffhausen tax board.

     Job Market and Mentality
        Total Labor Costs: about 6% lower than in Germany (in accordance with
        the Institute of German Economy, Cologne); in some cases difference is even
        significantly larger; For example, in the machin-ing industry: considering all
        aspects, production costs are up to 33% more favorable in CH-Schaffhausen.
        Average Work Days per Year: in CH/Schaffhausen 1,879 hours / in Germa-
        ny 1,704 hours.
        Strike Days per Year per 1,000 Residents: Schaffhausen 0 days / in Ger-
        many 9,48 days.
        Job Market: distinguished training programs; labor supply spans to Zurich,
        EU-specialists can be hired as either resident Swiss citizens or German frontier
        Training Grants: up to 40% of half a year salary to the unemployed, if there is
        an education deficit.
        Work Permits: within one week for EU- and EFTA-citizens.

     Property / Real Estate / Permission Practices
        Build or Rent: all possibilities are an option.
        Industrial Sites, Office Buildings and other Company Property: obtai-
        nable, individual search assistance available, site assessment and preview
        through the Economic Promotion office.
        Apartments and Single Family Homes: widely available; individual assis-
        tance with search.
        Building and Employment Permission: within few weeks.


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