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

Overview

The Canton of Zug is located in central Switzerland, just south of Zürich, and is known worldwide for its highly favorable tax regime and sophisticated international business environment. With around 130,000 residents (2023), its capital is Zug city. Zug is a magnet for multinational corporations, blockchain companies, and high-net-worth individuals.

Economic Strengths & Infrastructure

✔ GDP: One of the wealthiest cantons per capita, with a global business ecosystem and strong inflows of foreign capital.
✔ Key Industries: Financial services, commodities trading, pharmaceuticals, blockchain/crypto (Crypto Valley), ICT, and life sciences.
✔ Education & Research: Institute for Financial Services Zug (IFZ), international schools, and access to top-tier universities in Zürich and Lucerne.
✔ Transport & Connectivity: Direct motorway and rail links to Zürich and Lucerne; Zürich Airport is just 45 minutes away.

Taxation

Legal entities: Legal entities are subject to a corporate income tax at the tax rate of 11.77% (Zug) and a capital tax of 0.071% 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 22.2% (Zug) and 23.2% (Neuheim). 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 is available.

Government Support for Business Location

	✔ Zug Economic Promotion Office Provides confidential and personalized support for company formation, residence permits, tax rulings, and regulatory navigation. Learn more
	✔ Crypto Valley Association (CVA) Non-profit supporting blockchain ecosystem growth and international networking in Zug’s Crypto Valley. Learn more
	✔ Greater Zurich Area AG Zug participates in this regional agency supporting foreign companies with expansion and innovation partnerships. Learn more

Additional Advantages

✔ Exceptionally low corporate and personal tax rates.
✔ Fast-track company registration and efficient regulatory processes.
✔ First-class infrastructure, global digital connectivity, and stable political climate.
✔ Outstanding quality of life: lakeside living, international community, and family-friendly amenities.

Useful Official Links

The Canton of Zug is Switzerland’s premier destination for entrepreneurs, investors, and international companies seeking tax efficiency, financial sophistication, and stability. LINDEMANNLAW offers expert legal support in migration law, corporate law, tax optimization, and all aspects of relocation to Zug.