News / Investment in the Balearics
Mallorca: A paradise for Swiss investors
After the Swiss National Bank (SNB) decreased the interest rate to -0.75%, within minutes the Swiss franc has risen by 30%, from 1.20 francs per euro where it was anchored to 0.8.
Swiss investors are lucky this 2015. Specially those who are considering investing in Mallorca or elsewhere in the euro area. In mid-January the Swiss National Bank (SNB) had reduced interest rates to -0.75% and had also eliminated the minimum exchange rate of the Swiss franc against the euro, set at 1.2 francs.
One of the arguments used by the Swiss National Bank to justify the reduction of interest rates is the recent depreciation of the euro against the dollar, which caused a weakening of the Swiss franc against the US currency. The measure taken by the Swiss National Bank brought the Swiss franc to increase by 30% within minutes, from 1.20 francs per euro where it was anchored to 0.8. Although this percentage changes every day since then. As a result, European stock markets have collapsed and the euro has fallen to $1.15.
The depreciation of the euro against the dollar and the drastic increase of the Swiss franc are the perfect formula to get the most of Swiss capital in the euro zone. Undoubtedly now is the best time to invest for Swiss entrepreneurs. And one of the best choices would be investing in second homes and luxury property in Mallorca, consolidated as one of the most solid and reliable investment within the European business market.