The Canton of Zug
The Canton of Zug is located in the heart of Switzerland, about 30 minutes by car and 20 by train from both Lucerne and Zurich as well as 35 minutes from Zürich Kloten airport, that is strategic for doing business.
The recent construction of the Gotthard base tunnel (part of the Alp Transit project) has developed the high-speed rail link on the Zurich-Lugano route, thus, reducing rail travel times for those coming from Germany or Italy.
The city of Zug – Stadt Zug – is located on the homonymous lake – Zugersee – as well as at the foot of the homonymous mountain – Zugerberg – about 1,000m high. This allows its inhabitants to practice mountain skiing and snowboarding in winter as well as cycling and beach activities in summer with several beaches and bathing establishments along the lake of Zug.
A tax haven
Zug is considered a tax haven, in fact it has the lowest level of taxation in all Switzerland, both for individuals and legal entities.
As an example (calculation for residents in the city of Zug: federal tax + cantonal and municipal taxes 2018, values in CHF):
An operating company with a taxable profit of 500.000 pays about
An operating company with a taxable profit of 100.000 pays about
A private resident with a taxable income of 500.000 and assets 1mln pays about
A private resident with a taxable income of 100.000 and no assets pays about
These calculations do not take into account particular tax benefits for companies (for example, for holding companies) or any tax deductions for private individuals (for example, for dependent children) that can further lower the tax burden for the tax payer.
The Tax Authority
It is very important to underline that the dialogue with the Authorities is extremely positive and constructive in Zug, in particular with the Tax Authority. The Canton through its administration tries to support individuals and companies in every possible way. It considers them as important customers offering them services of high quality, and thus, it allows to build stable and reliable relationship of trust between the Canton and the tax payer.
Cryptocurrencies and Blockchain
Finally, we emphasize that many companies involved in the business of cryptocurrencies and blockchain have moved their headquarters from other Countries to Zug, and that is the proof of its high attractiveness in Switzerland and all over the world.