Legal System

The Swiss legal system is built upon the principles of civil law.

Civil law, also called Continental law or Romano-Germanic law, is the most prevalent legal system in the world. The main difference between civil and common law is that that common law draws abstract rules from specific cases, whereas civil law starts with abstract rules, which judges must then apply to the various cases before them. In other words, historically speaking, common law is based upon traditions and laws are codified following court rulings. On the other hand, in the case of civil law, laws are first codified and then applied.

The final court of appeals in Switzerland is the Federal Supreme Court of Switzerland. Because of Switzerland\'s system of direct democracy, the Supreme Court does not have the authority to review the constitutionality of federal statutes; however, the people can strike down a proposed law by referendum. Nevertheless, according to settled case law, the Court has the power to review the compliance of all Swiss law with certain categories of international law, in particular the European Convention of Human Rights.

Privacy

At this time Switzerland has not signed a Tax Information Exchange Agreement or Mutual Assistance Treaty with the United States. Although Switzerland is a participant in the European Union Savings Directive, it has not agreed to share personal information with other nations. As such, Switzerland provides a high level of privacy for citizens of the United States and the European Union. Also, it is fair to suggest that Switzerland is seriously interested in protecting the privacy of its foreign investors.