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

Overview

The Canton of Appenzell Innerrhoden is the smallest Swiss canton by population, with around 16,000 residents (2023). It is located in eastern Switzerland and is known for its traditional culture, direct democracy, and unspoiled natural surroundings. The capital is Appenzell. Despite its small size, the canton offers a business-friendly climate, affordable real estate, and a peaceful lifestyle — ideal for small businesses, remote entrepreneurs, and family offices.

Economic Strengths & Infrastructure

✔ Business Environment: A strong emphasis on hospitality, agriculture, artisanal products, and high-quality services.
✔ Key Industries: Tourism, agri-food, timber, crafts, construction, wellness, and retail.
✔ Education & Workforce: Skilled local labor force, strong vocational training, and access to nearby universities in St. Gallen and Lucerne.
✔ Transport & Connectivity: Well-connected to the regional economic centers of St. Gallen and Herisau by road and train; Zürich Airport is reachable in under 90 minutes.

Taxation

Legal entities: Legal entities are subject to a corporate income tax at the tax rate of 12.66% (Solothurn) and a capital tax of 0.05% on taxable equity. The capital tax is 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 23.7% (Appenzell) and 26.9% (Oberegg). Private capital gains are tax exempt and dividends from qualifying participations are taxed with a discount of 50% 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

	✔ Appenzell Innerrhoden Office for Economic Development Offers hands-on support for entrepreneurs, including business formation guidance, tax consultation, site identification, and administrative coordination. Learn more
	✔ Standort Appenzell (Business Location AI) Promotes business development, land use for SMEs, and sustainable economic growth projects. Learn more
	✔ Appenzellerland Tourism AI Provides visibility and support for tourism- and hospitality-based enterprises. Learn more

Additional Advantages

✔ Very low real estate costs and affordable cost of living for founders and their families.
✔ Stable, traditional legal environment with transparent tax conditions.
✔ High quality of life: ideal for nature lovers, remote workers, and families valuing privacy and safety.

Useful Official Links

The Canton of Appenzell Innerrhoden is ideal for individuals and small enterprises seeking calm, legal clarity, and a close-knit community with modern digital access. LINDEMANNLAW supports your relocation with services in migration law, corporate structuring, and tax guidance — tailored to the unique character of Innerrhoden.