Company location canton Zug

You are here: Home » Company Formation » Company Formation Switzerland » Company location canton Zug

Perfect company location in Switzerland

Internationalitystabilitylow taxes and the quality of education are among the strengths of Zug as a business location. The diversity, the high quality of life, the rich culture and beautiful surroundings are an ideal environment for various types of companies.

Within the 26 cantons of Switzerland there are varying rates of taxation. This leads to increased competition among the cantons. Zug is among the cantons with the lowest tax rates.

Taxes: A paradise for companies in Zug

This is the list of the cities and regions with the lowest rates of corporate taxes worldwide (tax rates in percentage):

City / Region Legal person
Schweiz (SUI) Zug 13,7 %
Irland (IRE) Dublin 14,1 %
Schweiz (SUI) Nidwalden 14,8 %
Singapur (SIN) Singapore 15,7 %
Schweiz (SUI) St. Gallen 16,2 %
Slowakei (SVK) Bratislava 16,3 %
Schweiz (SUI) Luzern 16,3 %
Schweiz (SUI) Schwyz 17,0 %
Polen (POL) Warschau 17,0 %
Schweiz (SUI) Zürich 18,3 %

Switzerland also dominates here: very favorable tax regimes lead to relocation of companies and put the remaining countries under pressure. A glance shows the effective tax rates in other countries: Brussels (24,7 %), Luxembourg (25,2 %), London (28,6 %), Boston (35,8 %). If Switzerland already heats up the regular tax rates in the tax competition, than this will be even more the case with the special rules. Zug is a classic example of this.

Holdingsdomicile and mixed companies benefit in Zug when it comes to the very low income tax rates or even being completely exempt from corporate income taxes. Holding companies are corporate entities, which administer other companies and do not carry out business activities in Switzerland on their own. Domiciliary companies are entities, which only carry out administration activities, but no business in Switzerland. A pure domicile company is the genteel expression for a “mailbox company”.

Mixed companies are companies or branches of foreign corporations which primarily do business abroad and only carry out subordinate business in Switzerland. These company structures only have to pay a tax on capital of 0.075 ‰ in Zug. For the holding companies this rate has even been reduced to 0.02 ‰ in the year 2007. Since 2000 the number of companies registered in Zug has increased by a quarter. Thanks to this special features Zug has become the world´s leading coffee trading center. It is furthermore at the lead when it comes to trade with such resources like copper, zinc, nickel and cole.

 Zug – Location No. 1 in Europe
Tax analysis

In this context please read our tax analysis information!
» More about tax analysis

Tax issue

The tax issue plays a substantial role when it comes to the choice of office jurisdiction. Due to the privileged tax rate, which only amounts to half of the Swiss average, a lot of multinational companies, which, for example, are active in trading with resources and the financial sector, have settled in Zug.

There is a reason why such companies as Glencore International (resource trading company with a turnover of 112 mio.), Shell, BP, the trading giant Metro or even the subsidiary of BASF have made their choice in favor of this excellent location. Even the German former Federal Chancellor Schröder with Nord Stream (according to the EU Commission an excellent energy project (which will cover 25% of the EU`s energy demand from 2015 onwards) and Boris Becker have settled in the canton of Zug. The location Zug tells its own tale.

In the intercantonal tax comparison canton Zug has the lowest tax burden within Switzerland.

International tax comparison

The tax burden for individuals and corporate entities in Switzerland is among the lowest in the world. Canton Zug is at the top of the list.

Your new location in Zug

Your business address in Zug is located in a highly representative commercial building, directly next to the lake of Zug, 1 minute from the centre, with a direct highway connection (direction Luzern and Zürich), 25 minutes from Zürich airport. It is strictly up to you if you would like to use it as “virtual office” or a business branch, we make it possible for you.

We are pleased to establish your public limited company (AG)private limited liability company (GmbH) or Swiss foundation with the headquarters in Zug. We will assist you in the fields of administration, accounting and taxes.

Do you have any Questions about the canton Zug?
We provide our advice starting from the company formation up to the administration of your enterprise and support you with all questions concerning taxation. We are pleased to help you! » to the contact options

Show Comments