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

Overview

The Canton of Neuchâtel is located in western Switzerland and is predominantly French-speaking. With around 180,000 residents (2023), its capital is Neuchâtel city, which is situated on the shores of Lake Neuchâtel. The canton is globally recognized for its precision industries, particularly watchmaking, and its innovation-driven economy.

Economic Strengths & Infrastructure

✔ GDP: A highly export-oriented economy with global reach, especially in microtechnology and precision sectors.
✔ Key Industries: Watchmaking, microengineering, medtech, ICT, cleantech, and agrifood.
✔ Education & Research: University of Neuchâtel, Microcity (innovation hub), and prominent research institutes in microtechnology and applied sciences.
✔ Transport & Connectivity: Excellent road and rail links to Lausanne, Bern, and Geneva; access to Geneva and Basel airports.

Taxation

Legal entities: Legal entities are subject to a corporate income tax at the tax rate of 13.7% and a capital tax of 0.5% 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 38.4% (La Tène) and 39.7% (Les Verrières). 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. Lump-sum taxation regime available.

Government Support for Business Location

	✔ Neuchâtel Economic Promotion (NECO) Supports foreign investors and local companies with location search, administrative procedures, and business integration. Learn more
	✔ Microcity Neuchâtel Innovation hub offering infrastructure and services for high-tech companies, start-ups, and SMEs in microtechnology and related fields. Learn more
	✔ Regional Business Networks Offer sector-specific support, particularly for precision industries and SMEs.

Additional Advantages

✔ Clear legal framework and streamlined company registration process.
✔ Strong infrastructure: advanced digital connectivity, reliable energy, and robust logistics.
✔ Excellent quality of life: lakeside setting, cultural richness, and international schools.

Useful Official Links

The Canton of Neuchâtel offers an ideal location for companies seeking innovation, precision engineering expertise, and high quality of life. LINDEMANNLAW advises individuals, families, and entrepreneurs on migration law, corporate law, tax, and legal matters for successful relocation to Neuchâtel.