Switzerland and the Greater Zurich Area provide a unique blend of top-notch infrastructure, knowledge base, talent pool, liberal legal framework and administrative efficiency. There is virtually no industry and no service sector that would not be well advised to consider the Greater Zurich Area as a main pillar for their EMEA or global operations. http://www.greaterzuricharea.ch/

1. Greater Zurich Area AG, May 2013: Intellectual Property 1
Switzerland and the Greater Zurich Area provide a
unique blend of top-notch infrastructure, knowledge
base, talent pool, liberal legal framework and adminis-
trative efficiency. There is virtually no industry and no
service sector that would not be well advised to consider
the Greater Zurich Area as a main pillar for their EMEA
or global operations.
With emphasis on high value creation rather than vol­
ume, corporate structures focusing on central manage-
ment and headquarters functions in a low-tax environ-
ment make the Greater Zurich Area a prime destination
for sophisticated operations and services.
IP rights management
In the age of digital information and media, a growing
healthcare sector and intense competition in brand
driven and innovative industries, management of intel-
lectual property (IP) rights has become a critical factor
for economic success.
Adding Value: Intellectual Property (IP) Management
in the Greater Zurich Area
With the highest patent per capita ratio, a great
tradition in life sciences and innovative technology, as
well as a sophisticated legal framework for intellectual
property, Switzerland and the Greater Zurich Area of-
fer diverse and customized solutions for multinational
corporations to centralize their IP management. A Swiss
IP company or branch promises better control, cheaper
administration, higher protection, enforcement, and
securitization of globally generated IP.
A Swiss IP company or branch has significant potential
for tax optimization. If commercial and licensing activ­
ities are performed mostly outside Switzerland, and
if the company has only limited activities in the Swiss
market, tax privileges (mixed or holding company) may
apply on a cantonal level. With that, effective tax rate
varies from 8 to 12%.
Equally, an IP company or branch can be integrated into
corporate structures such as a Business Control Center
(BCC) or Shared Services Center (SSC) leading to further
efficiencies and cost savings on the federal level.
Prime examples of such best operating
practices are intellectual property (IP)
management, and research & development
(R&D).

2. Greater Zurich Area AG, May 2013: Intellectual Property 2
Benefits of migrating IP to the Greater Zurich Area
• Efficient IP registration.
• High level of legal IP protection, attractive venue
for arbitration.
• Swiss double taxation treaty network for license
income (IP company only; for Swiss IP branch,
double tax treaty network of head office’s location
is applicable).
• Over 25 treaties with 0% withholding tax (includes
all EU member states).
• Mixed company privilege available for IP company
or branch. With that, effective tax rate varies from
8 to 12%.
• No withholding tax on royalty payments to a Swiss
company from most countries.
• No Swiss withholding tax levied on royalty
payments and interest payments (both being tax
deductible).
• Usually no Swiss VAT.
• R&D costs generally deductible.
• IP may be depreciated over 5 years.
• No stamp duty on migration of IP into Switzerland.
Research & development (R&D) in the Greater Zurich
Area
One of the highest national research and development
(R&D) expenditures in the world, sky-high innovation
and patent registration levels as well as top-notch aca-
demic and corporate R&D laboratories appeal to schol­
arly and private researchers alike to set up shop in the
Greater Zurich Area.
World-class institutes such as the University of Zurich
and the ETH Zurich (Swiss Federal Institute of Technol­
ogy), the renowned PSI Paul Scherrer Institute and the
IBM Zurich Research Laboratory, have appealed to Swiss
and international scientific elite for over a century, gar-
nering the region with nearly two dozens Nobel laure-
ates.
Great efforts are undertaken in the area of technol­ogy
transfer between academic research, applied sciences
and corporations. Science parks, business incubators
and various financing vehicles (e.g. Venture Capital,
Research Funds, or the SIX Swiss Exchange), in particular
for industries such as Pharma / Life Sciences, as well as
Micro- and Nanotechnology abound.
This and an unmatched quality of life have helped to
retain a great amount of know-how, expertise and in-
tellectual capital in the Greater Zurich Area – a priceless
asset for any region.
For companies, especially those active in auspicious,
innovation-prone industries, Switzerland’s intellectual
property protection is an additional plus. Being a signa-
tory to the WIPO (World Intellectual Property Organiza­
tion) Convention and a comprehensive legal system of
patent, trademark, design and other IP rights set up by
the Swiss Federal Institute of Intellectual Property (IGE)
are guarantors for the highest protection of innovation,
creativity, and intellectual property.
The Greater Zurich Area offers an expedient
legal and fiscal framework for efficient and
cost-effective development, administration
and exploitation of intellectual property
rights on a global scale.
The Greater Zurich Area is a haven for lead-
ing edge research and development (R&D)
at academic and corporate level.
Switzerland scores in R&D competitiveness
Switzerland had an excellent overall score and man-
aged to be in the Top 10 in the following categories:
• Basic research (no.1)
• Nobel Prizes per capita (no.1)
• Intellectual property rights (no.1)
• Innovative capacity (no.3)
• Private research expenditure in % of GDP (no.8)
• R&D employees per resident (no.8)
• R&D expenditure per resident (no.9)
Sources: WEF 20011/2 / IMD 2011/2 Competitiveness Reports

3. Greater Zurich Area AG, May 2013: Intellectual Property 3
An R&D laboratory of an international company can be
set up as part of a Swiss principal, e.g. managing the
company’s IP rights. Provided that these R&D operations
do not violate the principal status and that IP of research
results is being delegated to the principal, they can be
located in the Greater Zurich Area. Companies can tap
into its vast pool of knowledge and talent, while en-
joying the favorable tax environment of the region.
R&D activities are taxed on a cost plus basis. A mixed
company status may also apply to the principal (effec­
tive tax rate of 5 to 12%).
Benefits of locating your R&D activities to the Greater
Zurich Area
• Great R&D talent pool and skills available.
• World-class research institutes.
• Financial center Zurich offers various funding
opportunities (e.g. SIX Swiss Exchange).
• Switzerland scores high in innovation, patents.
issued, and competitiveness.
• High level of IP protection.
• Excellent knowledge transfer.
• Tax-optimization models apply.
Thanks to an outstanding scientific and
financial infrastructure, and to a busi-
ness-friendly administrative, legal and fiscal
framework, setting up an R&D operation
in the Greater Zurich Area will result in the
highest return on investment.
World-famous research institutions
in the Greater Zurich Area
ETH Zurich
www.ethz.ch
University of Zurich
www.unizh.ch
EMPA Swiss Federal Laboratories for Material
Testing and Research
www.empa.ch
IBM Zurich Research Laboratory
www.zurich.ibm.com
PSI Paul Scherrer Institute
www.psi.ch
CSEM Swiss Center for Electronics and
Microtechnology
www.csem.ch
Google European Engineering Centre
www.google.com
Disney Research Zurich
http://graphics.ethz.ch/~grossm/disney/disney/
drz.php

4. Greater Zurich Area AG, May 2013: Intellectual Property 4
Switzerland
Greater Zurich Area AG
Limmatquai 122
8001 Zürich / Switzerland
Phone +41 44 254 59 59
Fax +41 44 254 59 54
info@greaterzuricharea.ch
www.greaterzuricharea.ch
USA
Greater Zurich Area Inc.
swissnex building
730 Montgomery Street
San Francisco, CA 94111 / USA
Phone +1 415 912 5909
CHINA
Jianping Gao
Representative China
Phone +86 21 6149 8208
Have we sparked your interest?
Would you like to get to know your options in the
Greater Zurich Area in more detail?
If yes, please contact your nearest Greater Zurich
Area representative for more information.
We are happy to assist you in every aspect of
expanding your business to the Greater Zurich
Area!