In 15 B.C. — and once again demonstrating their uncanny intuition for recognizing prime real estate — Roman soldiers established a customs post and tax collection station on a scenic hillside in what’s now known as Lindenhof in the Old Town of Zürich. A serene, shady park where locals and visitors come to rest beneath the linden trees or enjoy sweeping views of the city’s historic quarter, this vantage point once boasted a castle and witnessed numerous public assemblies for hundreds of years. It was here, in 1798, where taxes were once gravely assessed, that the city’s first constitution was sworn into reality.

Today, visitors enchanted by the chocolate shops and collection of historic clock towers or lulled by the peaceful, rhythmic lapping of lake water meeting the shore may be content to overlook the city’s modern role as a keystone in the world of finance and banking. Seductive landscapes notwithstanding, Switzerland’s largest metropolis is the address of the Swiss Stock Exchange and a host of the world’s principal banking and financial institutions.

Much of Zürich’s visible outward equanimity is firmly founded in Switzerland’s relative economic stability, stemming from the country’s historic position of neutrality and its secure national sovereignty. The legendary banking laws, steeped in secrecy, have changed in recent years — with new restrictions making it more of a challenge for U.S. citizens wishing to invest. Still, experts maintain Swiss banks remain a good hedge against the drama unfolding around the European Union’s currency issues. As restrictions tighten and investing becomes more specialized, the necessity of engaging third-party money managers and advisors is becoming the only way for U.S. clients to invest. With the exception of an extremely limited selection of Swiss banks, it’s no longer possible for clients domiciled in the United States to deal directly with a Swiss bank. Additionally, Securities and Exchange regulations dating back to the 1940s make it necessary for clients to go through an SEC Registered Investment Advisor based in Switzerland to invest through Swiss banks.

“At the moment,” explains Otto Heuppi, managing director of Zürich-based Swiss American Advisors Ltd. (formerly Sallfort Advisors AG), an SEC- and Swiss Authorities-registered firm that deals exclusively with U.S. clients, “the fear that the euro could break apart or that various members of the E.U. might be better off as non-members has had a big effect on E.U. banks. As a result of the current E.U. currency situation, large Swiss banks have had to increase their financial backing and reduce future lending to decrease the possibility of a potential ‘too big to fail’ situation, which could create economic problems for the entire country. Smaller banks — or private banks — also have stricter regulations that must be followed moving forward.”

Heuppi stresses that at practically all Swiss banks, one remains a client and not just a number; and although Swiss banks have come under a lot of pressure recently, there continue to be definite advantages to banking in Switzerland. “The long tradition behind the banking and investment business here goes back more than 200 years,” he says, “and safety and security are major advantages. Precious metals are backed by physical holdings, and securities/investments are held through the bank and are not part of the bank’s own assets, saving them from the possibility of becoming collateral for the bank itself.”

Banking, however, is hardly Zürich’s only appeal. With an extensive, orderly and highly efficient public transportation system that includes a wide-reaching network of trains, trams and boats, Zürich is one of the easiest cities in Western Europe to navigate. Continuously ranked as having one of the highest qualities of living worldwide, it’s renowned for the purity of its water and mild climate, the excellence of its cultural offerings and the variety of available outdoor pursuits and dining options. While the historic area along the lake’s shore has traditionally been a focal point, recent investments in redeveloping the more industrial outskirts of the city — known as Zürich West — have vastly expanded the available shopping, dining and cultural options. In Zürich, investing in the quality of life is simply business as usual.

Diversions

A good way to get your bearings in this dazzling city is to stroll down Bahnhofstrasse, Zürich’s posh shopping boulevard. Running south from the main train station, the mile-long street parallels the Limmat River (running between it and the city’s second river, the Sihl) and offers a rather heady selection of upscale shopping: confectioners, specialty handicrafts, fine jewelers, watchmakers and Swiss fashion and textile designs, including Tuchinform and Amsel Werk.

Just off the southern end of Bahnhofstrasse near the famed Flower Clock lie the Bürkliplatz lake piers. Board a stately lake cruiser or steamboat for a leisurely tour around Lake Zürich, past idyllic villages and vine-covered hills backed by snowy Alpine peaks. Back at the pier, walk into the Old Town for a fascinating tour with an expert from Sweet Zürich, who will cheerfully introduce you to the city’s finest off-the-radar chocolate establishments and entertain you with a rich mix of local history and culinary highlights (tours available in English or French). Afterward, wander up to the Lindenhof city park for a spectacular overview of the historic area. On the way, fill your water bottle at one of the city’s 1,200 drinking fountains, and then explore one of the 100 art galleries or 50-plus museums. Not to miss: Kunsthaus Museum of Fine Arts, Swiss National Museum, Rietberg Museum and the Rathaus. The collection of historic churches — many with significant clock towers or steeples — includes St. Peter’s, boasting the largest clock face in Europe; the Fraumünster, with glass windows by Marc Chagall; and the Grossmünster, with its Karlsturm tower.

Hop on a city tram (main stops are at numerous points along Bahnhofstrasse and just outside the train station) to trendy Zürich West with its host of eclectic, newly minted shops, cafés, bars and galleries, including the grouped galleries within the repurposed Löwenbräu complex. World-class evening entertainment — from opera and ballet to theater and concerts — can be found at a number of city venues, including the Zürich Opera House and the Tonhalle.

For a relaxing daytrip, make the short train journey to the small, nearby spa town of Bad Schinznach. A brief stroll from the station delivers you to the Aquarena, where you can enjoy a massage, dine at the splendid buffet and spend the day steaming and soaking in a series of thermal pools that includes a supremely relaxing river current that carries you in a slow spiral around the enormous outdoor pool.

Info To Go

Zürich International Airport (ZRH) is just over eight miles from city center. A main train station is located beneath the terminal, with direct service to Zürich and 180 other destinations. A rail service travel center can be found in Check-in area 3; additional ticket vending machines are in Customs Hall 2. The No. 10 Glattalbahn tram connects the airport to the main train station in city center, leaving several times an hour. Taxis are available from the arrivals area and make the trip in about 10 minutes. The ZürichCARD allows use of trains, boats and trams in the public transportation network from 24 to 72 hours, starting at about $21.

Just The Facts

Time Zone: GMT + 1

Phone Code: Country code: 41 City code: 43 and 44

Currency: Swiss franc

Entry/Exit Requirements: U.S. citizens must have a valid passport good for three months beyond the date of travel. No visa is necessary, and U.S. citizens traveling for either business or pleasure may remain for up to 90 days, consecutively or combined within a six-month period.

Official Language: Swiss German

Key Industries: Financial and insurance services, textiles, tourism

Lodging

Alden Luxury Suite Hotel

Original features and high-tech elegance define this heritage property with 22 luxury suites close to the Old Town and the lake. Splügenstrasse 2 $$$$

B2 Boutique Hotel + Spa

The converted Hürlimann Brewery features 51 spacious designer guestrooms, nine dual-level suites, an extensive thermal spa and a rooftop pool. Brandschenkestrasse 152 $$$$

Baur au Lac

Overlooking the lake and towering Alps, Zürich’s classic luxury address is set in private, tranquil parkland near Bahnhofstrasse and the Paradeplatz financial district. Talstrasse 1 $$$$

Dining

Hiltl

You don’t need to be vegetarian to enjoy this fresh fare. Order à la carte or indulge in the vast buffet. Sihlstrasse 28 $$–$$$

LaSalle Restaurant & Bar

Part of Zürich West’s new theater complex, this lunch-and-dinner
address serves classic French and Italian dishes in a gorgeous
glass and wood complex. Schiffbaustrasse 4 $$$–$$$$

The Restaurant at The Dolder Grand

The dining room’s two Michelin stars are thanks to Chef Heiko Nieder, but the lake and Alps views are all Swiss. Closed Sunday/Monday. Kurhausstrasse 65 $$$$

Weblinks

Aquarena
Kunsthaus Museum of Fine Arts
Rietberg Museum
Sweet Zürich/My Kugelhopf
Swiss American Advisors Ltd.
Swiss National Museum
Tonhalle Orchestra
Zürich Opera House
Zürich Tourism

Checking In With Corine Mauch

Mayor of Zürich

Some Experts Suggest The Instability In The European Economy Endangers Switzerland’s Ability To Maintain An Independent Curency. What Is Your Opinion?

Switzerland weathered the financial and economic crisis relatively well, mainly due to sound fiscal policies, low debt rates and a stable housing market. With the introduction of the minimum exchange rate against the euro, the Swiss National Bank has taken the right measure, which has brought immediate relief. In addition, it facilitates the price calculation for cross-border transactions with the euro countries. I am convinced the Swiss franc is a big advantage for Switzerland; it goes in line with very low interest rates, which allow us to keep investment spending high.

For the export sector, which includes tourism, the strong Swiss franc is, of course, an obstacle. However, this challenge is not new. Switzerland’s exporting companies generally focus on high quality and not on price competition. Top quality and innovative products and services are key to success in the tourism sector.

Refurbishing Zürich West As A Trendy Neighborhod Brought New Energy To A Fading Part Of Zürich. What Do Future Plans Hold?

The city will expand mainly within existing structures, which means we seek more inward densification. Around the main railway station, a new residential, education and services area called Europaallee is under construction. The Kunsthaus Art Museum will expand under the direction of British architect David Chipperfield. Next year, the University of the Arts will move to Zürich West, where a former dairy factory is being transformed into a campus. We’ve done the same with the Löwenbräu Areal, a former brewery that will open as an international hot spot for contemporary art in early September.

Zürich Was Listed In The Economist’s Worldwide Cost Of Living Survey As The World’s Most Expensive City To Live In. Has The High Cost Of Services Had An Adverse Effect On Tourism?

Our city is attractive to tourists seeking perfect service. The quality of life, cultural offerings and the stability and reliability of related infrastructure rate as some of city’s most important assets. In recent years, our tourism organizations intensified marketing efforts in emerging markets, particularly in Asia, in order to diversify the guest structure. We’re now bearing the fruits of these efforts. In 2011, the overall number of guest nights continued to grow, due largely to numerous visitors from India, China and other emerging markets. The number of guests from North America stayed the same as 2010, and the only declining numbers came from select European countries.

What Do You Suggest For Visitors In Search Of A Quintessential Zürich Experience?

In summer, I enjoy visiting the public swimming baths along the rivers or the lake; at night, they turn into open-air bars with live music and cultural events. I’m looking forward to the opening of the Löwenbräu Areal, and also recommend the Rietberg Museum, which highlights non-European arts.