Relocation to the Canton of St. Gallen | Migration Law, Corporate Law and Tax

Overview

The Canton of St. Gallen is located in eastern Switzerland, bordering Germany, Liechtenstein, and Austria. With around 515,000 residents (2023), its capital is the city of St. Gallen, famous for its UNESCO World Heritage Abbey District. The canton is a key industrial and innovation region with a strong international orientation.

Economic Strengths & Infrastructure

✔ GDP: St. Gallen is among Switzerland’s leading cantons for export-oriented industries and innovation-driven SMEs.
✔ Key Industries: Precision engineering, ICT, textiles, medtech, energy technology, and financial services.
✔ Education & Research: University of St. Gallen (HSG) — a top European business school; University of Applied Sciences of Eastern Switzerland (OST).
✔ Transport & Connectivity: Excellent rail, road, and air links; St. Gallen–Altenrhein Airport and proximity to Zürich Airport; major logistics hubs.

Taxation

Legal entities: Legal entities are subject to a corporate income tax at the tax rate of 14.3% and a capital tax of 0.06% on taxable equity. The capital tax is for the offset against the corporate income tax. Thus, if the corporate income tax liability is higher than the capital tax, no capital tax is due. Dividend income and capital gains from qualifying participations are exempted from corporate tax due to the participation exemption.

Individuals: Individuals are subject to progressive income tax with the top effective tax rates between 26.7% (Rapperswil) and 32.2% (St. Gallen). Private capital gains are tax exempt and dividends from qualifying participations are taxed with a discount of 30% at the cantonal and 30% at the federal level. Therefore, depending on the income structure, the effective tax rate may be significant. The canton levies wealth tax on an individual’s net wealth. Lump-sum taxation regime available.

Government Support for Business Location

	✔ Location Promotion St. Gallen Provides comprehensive services for investors and entrepreneurs — support, permits, and administrative guidance. Learn more
	✔ Startfeld (Innovation Network) Supports start-ups and SMEs with incubation, financing, and access to research and business networks. Learn more
	✔ Regional Economic Development Associations Assist with local business integration, industrial zones, and SME clusters.

Additional Advantages

✔ Transparent legal system and efficient business registration procedures.
✔ Robust infrastructure: reliable energy supply, advanced logistics, and digital networks.
✔ Excellent quality of life: natural beauty, cultural richness, and a family-friendly environment.

Useful Official Links

The Canton of St. Gallen combines innovation, industrial strength, and international connectivity, making it ideal for entrepreneurs, investors, and families. LINDEMANNLAW advises you on migration law, corporate law, tax planning, and all legal aspects of your relocation to St. Gallen.