Relocation to the Canton of Appenzell Ausserrhoden | Migration Law, Corporate Law and Tax

Overview

The Canton of Appenzell Ausserrhoden, located in northeastern Switzerland, is renowned for its strong SME tradition, vibrant cultural identity, and attractive business environment. German-speaking and home to approximately 55,000 residents (2023), its capital is Herisau. The canton offers notable economic freedom, low bureaucracy, and a strategic position in the East Switzerland economic region.

Economic Strengths & Infrastructure

✔ SME‑Driven Productivity: Dominated by precision manufacturing, microtechnology, and medtech—with a robust export orientation .
✔ Key Industries: Microtech, precision engineering, artisan crafts, agri-food, cleantech, and tourism.
✔ Innovation Framework: Supported by federal-regional programs (e.g., i-net networks and Swiss New Regional Policy), fostering inter-company and export-focused projects.
✔ Connectivity: Regional rail and road links to St. Gallen and Zürich; integrated into the St. Gallen Bodensee economic area.

Taxation

Legal entities: Legal entities are subject to a corporate income tax at the tax rate of 13% (Herisau) and a capital tax of 0.05% on taxable equity. 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 26.85% (Teufen) and 32.3% (Hundwil). Private capital gains are tax exempt and dividends from qualifying participations are taxed with a discount of 40% 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.

Government Support for Business Location

	✔ Cantonal Economic Promotion (Standortförderung AR) Acts as a gateway service, coordinating with municipalities and federal bodies to support national and international businesses. Learn more
	✔ AWA Foundation – Stiftung Wirtschaftsförderung AR Provides grants for economic projects that benefit the canton’s business community. Learn more
	✔ St. Gallen–Appenzell Chamber of Commerce (IHK) Regional chamber offering business networking, export advice, and legal/business consultancy. Learn more

Additional Advantages

✔ High economic freedom: low bureaucracy, flexible labor regulations, and swift decision-making.
✔ Competitive real estate and well-established industrial zones.
✔ Excellent quality of life: culturally rich, rural character, and family-friendly environment.

Useful Official Links

The Canton of Appenzell Ausserrhoden offers a unique setting for SMEs, entrepreneurs, and innovators seeking economic freedom, strategic regional connectivity, and strong local support. LINDEMANNLAW provides expert advice on migration law, corporate structuring, tax planning, and full-service relocation support tailored to Ausserrhoden’s environment.