The special relations between Switzerland and Bhutan are based on personal contacts between King Jigme Dorje Wangchuck and Swiss industrialist Fritz von Schulthess-Rechberg in the 1950s. Von Schulthess privately financed the first development projects in Bhutan.

During the 1960s and 1970s, private aid organsiations, in particular Helvetas, continued the development programmes. From 1978 onwards, the Swiss government also became active. In the 1980s and 1990s, Switzerland was one of the four main donor countries.

Even after the establishment of diplomatic relations in 1985, relations between the two countries were dominated by development cooperation. It is hoped that bilateral relations will now become more balanced.