Countless independent ratings affirm the Canton of Zug’s popularity as a unique area for business and living.
Countless independent ratings affirm the Canton of Zug’s popularity as a unique area for business and living. Its economic success is based on a distinctive long-term development strategy and Zug's authorities enjoy an excellent reputation for their support and efficiency. There are many reasons for Zug's popularity.
Zug is business-friendly. Companies appreciate the lean, service-oriented administration that facilitates efficient decision-making. Trade associations and authorities work together, enabling successful business activities.
Zug provides highly qualified specialists. It's first-class infrastructure ensures an educational level among the highest in Europe. Zug has a large pool of highly qualified talents and is a magnet for international professionals.
Zug stands for long-term stability. The Canton of Zug is successful and offers the highest level of political and financial stability, with a track record spanning decades. The economic success is based on a long-term development strategy. The tax rate for individuals and legal entities is one of the lowest in Switzerland.
Zug is one of the most popular locations in Switzerland and offers outstanding quality of life. It has excellent transport connections and is in close proximity to Zurich. People benefit from an ideal work-life balance.
- Corporate tax rate:
Effective corporate tax rate: 14.57%
Targeted total effective corporate tax rate after tax reform (TRAF) in 2020: 12% (with special tax regimes below 10%)
- Individual tax rate
Maximum individual tax: 23%. Total rate for average salaries is about 10%.
- Guiding thoughts & policies regarding tax holiday
Long tradition of financial stability with policy of low taxation for private individuals and companies. Currently, the total regular rate of taxation on company earnings is 14.5% (incl. federal, cantonal and communal tax), and for special tax regimes this can even fall below 10%. With the upcoming tax reform (TRAF), these special regimes will have to be abolished and the regular income tax rate will be reduced to 12%. In addition, applying new special tax regimes such as patent box, R&D deductions etc., the tax rate can still be reduced below 10% in the future.
- Innovation support & R&D grants
On top of the already leading tax rates, the Canton of Zug does not provide tax holidays or incentives for individual companies. Instead we invest heavily in world-class infrastructure, education and innovation platforms all companies can benefit from. e.g. Technology Forum Zug. There is an annual Zug Innovation Prize, various incubators for start-ups etc.
- Predominant industries
Wholesale trading, life science (pharma, biotech, medtech), high tech industry, information and communications technology, financial services (PE, family offices, fintech), headquarters
- Flagship companies
Roche Diagnostics (Global HQ), Siemens Smart Infrastructure (Global HQ), Glencore (Global HQ), Johnson & Johnson, V-Zug, Biogen, Amgen, Sika (global HQ), Partners Group (global HQ)
- Recent additions
Lafarge Holcim (Global HQ), Various Biotech EU HQ (Blueprint Medicines, Bluebird Bio, Atara)