Company formation, headquarters relocation, industry clusters,
and business intelligence from Switzerland's wealthiest canton.
24,300+ companies · CHF 163K GDP per capita · 11.85% corporate tax · CHF 150M/year incentives
Institutional-grade analysis of company formation, tax incentives, industry clusters, and headquarters relocation across Canton Zug.
Approved by voters on November 30, 2025 with 66.71% support, the LEP allocates up to CHF 150 million annually from 2026-2028 in direct grants. Applications for 2026 must be submitted by June 30 based on fiscal year 2024 data. Eligible activities include basic research, applied R&D, and scope 3.1 emissions reduction.
The Zug-Zurich life sciences corridor continues to attract international pharma and biotech headquarters. Roche Diagnostics, Johnson & Johnson MedTech, Biogen, AstraZeneca, and Bristol Myers Squibb anchor a cluster that has drawn over 60 US biotechs as European or international base in the last decade.
Siemens Smart Infrastructure's global headquarters in Zug continues to grow alongside Landis+Gyr (global HQ), V-Zug (SIX-listed manufacturer), and Bossard (global fastening technology). The Tech Cluster Zug innovation campus in Rotkreuz transforms V-Zug's former industrial site into a mixed-use technology hub.
The Crypto Valley now hosts 512 blockchain companies in Zug alone (of 1,290 across Switzerland and Liechtenstein). Ethereum Foundation, Solana, Cardano, and Polkadot remain headquartered in the canton, with the top 50 companies carrying a combined valuation exceeding $383 billion.
Alongside the LEP, Zug voters approved a Tax Act amendment with an even stronger mandate. The canton expects CHF 200 million in additional annual revenue from Pillar Two's 15% minimum tax on large MNEs, which it is channeling into direct grants rather than qualified refundable tax credits.
A dedicated cluster of multinational procurement headquarters has evolved in Zug. AB InBev, Crown Packaging, Eviosys, Siemens Building Technologies, and Glencore operate global purchasing and supply chain management from the canton, drawn by timezone convenience and international talent access.
Four pillars of intelligence spanning Zug's business formation ecosystem, industry clusters, tax architecture, and headquarters infrastructure.
GmbH and AG incorporation, branch registration, advance tax rulings, work permits, commercial register procedures, and relocation advisory services.
Roche Diagnostics, Johnson & Johnson, Biogen, 250+ companies, global pharma/biotech HQs, clinical research, medical devices, and the Zurich-Zug health corridor.
Siemens Smart Infrastructure, Landis+Gyr, V-Zug, Bossard, Tech Cluster Zug, blockchain, fintech, deep-tech startups, and the Crypto Valley ecosystem.
Location Development Act, STAF patent box, R&D super-deduction, OECD Pillar Two response, holding company structures, wealth tax, and advance ruling practice.
From company formation to industry clusters, tax incentives to headquarters relocation — the definitive intelligence resource for Switzerland's most competitive canton.
The Canton of Zug occupies just 239 square kilometers in central Switzerland — one of the smallest cantons by area. Yet within this compact territory sits one of the most concentrated business ecosystems in Europe. Over 24,300 companies are registered here, generating more than 70,000 jobs for a resident population of approximately 130,000 people, of whom 30% come from over 140 countries. The canton's GDP per capita stands at CHF 163,000, second only to Basel-Stadt in Switzerland and among the highest in the world.
Zug's transformation from a largely agricultural canton into an international business powerhouse was deliberate. Beginning in the 1940s and accelerating through the 1960s-1980s, the canton systematically lowered its corporate tax rates, invested in infrastructure, and cultivated a business-friendly administrative culture. The results speak for themselves: Zug today hosts the highest density of international headquarters in Switzerland, spanning life sciences, commodity trading, high-technology, financial services, and blockchain.
The strategic case extends beyond tax rates. Zug sits 25 minutes by train from Zurich, Switzerland's largest city and financial center. Zurich Airport — a major European hub — is 45 minutes away. The canton offers direct rail connections to Lucerne, Basel, Bern, and Milan. For global executives managing operations across European time zones, Zug's centrality is a meaningful operational advantage. The Greater Zurich Area provides the talent pool; Zug provides the fiscal efficiency.
Switzerland offers several corporate structures, each suited to different business objectives. In Zug, the two most common vehicles for international businesses are the GmbH (limited liability company) and the AG (joint-stock company). Both provide limited liability protection and can be formed relatively quickly by global standards.
| Structure | Min. Capital | Payment | Best For |
|---|---|---|---|
| GmbH (Sàrl) | CHF 20,000 | Fully paid in | SMEs, startups, single-owner firms |
| AG (SA) | CHF 100,000 | 50% paid in | Larger enterprises, listed companies |
| Branch | None | N/A | Foreign companies, no separate entity |
| KmGK | Variable | Variable | PE/VC fund structures |
The standard incorporation process takes 2-4 weeks and involves notarizing articles of association before a Swiss notary, depositing share capital at a Swiss bank, filing with the Zug Commercial Register, receiving a UID (unique identification number), and registering for VAT if annual revenue exceeds CHF 100,000. For FINMA-regulated activities — such as asset management, banking, or fund administration — the licensing process extends to 6-18 months.
Foreign companies seeking a Swiss presence without forming a new legal entity can establish a branch office. Branches operate under the foreign parent company's name with the Swiss location appended, can engage in commercial activities independently, and are subject to Swiss taxation on profits attributable to the branch. Branch registration with the Zug Commercial Register typically takes 2-3 weeks.
One of Zug's most valuable features for incoming businesses is its advance tax ruling practice. Companies can negotiate binding rulings with the cantonal tax authority on effective rates, patent box eligibility, step-up valuations for relocated IP, and double taxation treaty application. Response times are typically measured in weeks — not months — reflecting the pragmatic, service-oriented culture that distinguishes Zug from many European jurisdictions.
Zug's headline corporate tax rate of approximately 11.85% combines three levels of taxation: federal (effective 7.83% after deduction), cantonal, and communal. This rate is Switzerland's lowest and compares favorably to virtually any onshore European jurisdiction.
| Canton / Jurisdiction | Corporate Tax Rate | Specialization |
|---|---|---|
| Zug | 11.85% | HQ, commodities, life sciences, blockchain |
| Nidwalden | ~12.0% | Holding companies, IP |
| Lucerne | ~12.3% | SMEs, central Switzerland |
| Geneva | ~14.0% | Commodities, diplomacy, private banking |
| Zurich | ~19.6% | Banking, insurance, tech |
| Luxembourg | ~23.9% | Fund domiciliation, holding |
| Ireland | 15.0% | Tech, pharma (post Pillar Two) |
Beyond the headline rate, Zug's STAF (Tax Reform and AHV Financing) implementation provides powerful tools for innovative companies. The patent box allows up to 90% of qualifying intellectual property income to be excluded from the cantonal tax base. The R&D super-deduction permits an additional 50% deduction on qualifying research expenditure. A participation exemption eliminates cantonal tax on dividends from qualifying subsidiaries (10%+ shareholding or CHF 1 million+ fair value). These instruments are capped at a combined 70% total relief — meaning at least 30% of profit remains taxable — resulting in effective rates as low as 4-6% for IP-rich or R&D-intensive businesses, according to PwC Switzerland.
On November 30, 2025, Zug voters approved the Location Development Act (Gesetz über Standortentwicklung) with 66.71% support, alongside a Tax Act revision approved at 68.21%. This legislation represents Zug's strategic response to the OECD Pillar Two global minimum tax and is one of the most significant business policy developments in the canton's history.
The LEP allocates up to CHF 150 million per year from 2026-2028 in direct grants to companies domiciled or operating in Zug. The funding comes from the estimated CHF 200 million in additional annual tax revenue generated by the Pillar Two minimum top-up tax (15% floor for multinational enterprises with consolidated revenue exceeding EUR 750 million). Zug chose direct payments over tax credits, reasoning that grants are more advantageous for both taxpayers and the canton, as detailed by EY Switzerland.
Applications for the 2026 funding round must be submitted online by June 30, 2026, based on fiscal year 2024 audited financial data. If applications exceed the annual budget, contributions will be proportionally reduced. From 2029 onward, the maximum annual funding will be reassessed by the Government Council. According to Deloitte Switzerland, the detailed regulations — including specific funding criteria, calculation methods, and procedures — will be established through an ordinance that can be swiftly updated to align with international developments.
The Swiss Federal Council implemented a domestic minimum top-up tax from January 1, 2024, based on the OECD/G20 Global Anti-Base Erosion (GloBE) rules. This ensures that constituent entities of in-scope multinational enterprises — those with consolidated revenue exceeding EUR 750 million — are subject to a minimum effective tax rate of 15%. For Zug, where the statutory rate of 11.85% falls below this threshold, the impact is direct: affected MNEs will pay a top-up to reach the 15% floor.
However, the vast majority of Zug's 24,300 companies fall below the EUR 750 million revenue threshold and remain unaffected. The canton estimates the top-up tax will generate approximately CHF 200 million in additional annual revenue — which, rather than simply collecting, Zug is proactively reinvesting through the Location Development Act. This approach positions Zug not as a jurisdiction losing its edge, but as one actively converting a regulatory challenge into a competitive advantage.
Other Swiss cantons are following Zug's lead. Basel-City and Grisons have published their own proposals for economic promotion legislation, and more cantons are expected to follow. As Lenz & Staehelin notes, companies developing, holding, or exploiting IP rights, or striving to make their business more sustainable, may benefit significantly from these new frameworks.
The life sciences cluster in Zug has grown from a handful of companies in the early 2000s to over 250 firms employing approximately 6,200 people — representing roughly 7% of the canton's total workforce. The cluster spans diagnostics, medical devices, orthopedics, digital health, pharmaceuticals, and biotechnology. Activities include R&D, manufacturing, procurement and supply chain, commercialization, and general headquarters functions. Critically, life science products account for more than 50% of all exports from the Canton of Zug — making it the single most important sector for the canton's external economic balance.
The workforce divides roughly into two sub-clusters: approximately 3,000 employees in pharmaceuticals and biotech, and 3,200 in medical technology. This balance between drug development and device manufacturing creates a resilient ecosystem that is less vulnerable to single-sector downturns than more narrowly specialized clusters.
| Company | Function in Zug | Sector |
|---|---|---|
| Roche Diagnostics | Global HQ (Rotkreuz) — 2,990+ employees, 79 nationalities | In vitro diagnostics |
| Johnson & Johnson MedTech | International campus — global functions | Surgical devices, orthopedics |
| Biogen | International HQ | Neuroscience therapeutics |
| AstraZeneca | European/International operations | Oncology, rare disease |
| Bristol Myers Squibb | International operations | Oncology, hematology |
| Medela | Global HQ | Breast pumps, medical vacuum |
| SHL Medical | Global HQ | Drug delivery devices (autoinjectors) |
| Zimmer Biomet | European/International HQ | Orthopedic implants |
| Align Technology | International HQ | Invisalign dental aligners (global leader) |
| Smith & Nephew | European operations | Advanced wound care, sports medicine |
| Hologic | International operations | Women's health diagnostics |
| Exact Sciences | International operations | Cancer screening (Cologuard) |
| Novocure | International HQ | Tumor treating fields technology |
| Schiller | Global HQ | Cardiopulmonary diagnostics |
Over the last decade, approximately 60 US biotechs have chosen Zug as their European or international base — one of the most concentrated transatlantic life sciences migrations in European history. The list includes Alnylam Pharmaceuticals (RNAi therapeutics), Blueprint Medicines (precision oncology), Krystal Biotech (gene therapy), Insmed (rare pulmonary disease), Deciphera (kinase inhibitors), PTC Therapeutics (rare disease), Mirum Pharmaceuticals (pediatric liver disease), Cytokinetics (cardiac therapeutics), Springworks (targeted oncology), Madrigal Pharmaceuticals (NASH), Crinetics (endocrine disorders), and Alexion Pharmaceuticals (now AstraZeneca Rare Disease).
Why do US biotechs choose Zug over Dublin, Amsterdam, or Munich? Three factors dominate: first, the STAF patent box delivers a 90% deduction on qualifying IP income — critical for biotech companies approaching commercialization. Second, Zug's existing cluster of 250+ life sciences companies creates a ready-made network of service providers, regulatory consultants, CMOs, and talent. Third, the personal tax environment (no capital gains on share sales) is attractive for founders and senior executives holding equity. As Nicola Heffron of Alexion/AstraZeneca noted, Switzerland's position as a genuine hub for biotech innovation was a primary draw for her family's relocation.
The established global pharma presence completes the picture: Amgen, Janssen (Johnson & Johnson), GSK (Oncology), Sanofi, AbbVie, and Gilead all maintain significant operations in the canton. The cluster benefits from proximity to ETH Zurich — consistently ranked among the world's top 10 universities — and the broader Zurich-Zug-Lucerne pharmaceutical corridor documented by Interpharma. Innovative startups such as Heart Force and Sedimentum find fertile ground within this established ecosystem.
Zug's high-tech cluster anchors around several globally significant headquarters that collectively employ thousands in the canton and generate tens of billions in global revenue. This is not a token presence — these are operational command centers running worldwide divisions.
Siemens Smart Infrastructure operates its global headquarters from a CHF 250 million campus in Zug, making it one of the most significant corporate presences in the canton. The division, led by CEO Matthias Rebellius, generated €21.4 billion in revenue in fiscal year 2024 with a 17.3% profit margin and approximately 78,500 employees worldwide. The Zug campus features 1,000+ workspaces, production facilities, and serves as Siemens' largest Swiss location. The campus has been carbon neutral since 2023, serving as a global reference project for sustainable smart buildings — the same technologies Siemens sells worldwide are deployed in its own headquarters.
Siemens has been present in Zug since 1998, when it acquired the industrial activities of Elektrowatt AG. Building Technologies evolved into the core of the Smart Infrastructure operating company, with Zug designated as the global headquarters. The division addresses urbanization and climate change by connecting energy systems, buildings, and industries — providing end-to-end solutions from power generation to consumption. The campus itself was one of the first projects to use Building Information Modelling (BIM) for design and construction.
| Siemens Smart Infrastructure | Key Figures (FY 2024) |
|---|---|
| Global Revenue | €21.4 billion |
| Profit Margin | 17.3% |
| Global Employees | ~78,500 |
| Zug Employees | 1,700+ |
| Campus Investment | CHF 250 million |
| Carbon Neutral Since | 2023 |
Landis+Gyr (SIX: LAND), the global leader in smart metering and grid edge intelligence, was literally born in Zug in 1896 and remains headquartered in the canton today — 129 years of continuous operations from a single location. The company serves 3,500+ utilities worldwide, processes data from 87+ million licensed endpoints, and carries a record backlog of approximately $4.6 billion. A planned dual US listing in 2026 will further elevate its profile while maintaining Swiss Exchange presence. (See §12 for the full Landis+Gyr deep dive.)
V-Zug, the Swiss premium household appliance manufacturer listed on the SIX Swiss Exchange, represents Zug's manufacturing DNA. Its former industrial site in Rotkreuz is being transformed into the Tech Cluster Zug innovation campus — a mixed-use technology and innovation hub housing startups, established tech companies, research institutions, and residential space. The development symbolizes Zug's evolution from a manufacturing economy to a knowledge-based innovation ecosystem — while retaining its industrial heritage through V-Zug's continued presence.
Bossard Group (SIX: BOSN), with CHF 986.4 million in 2024 revenue and 3,000 employees across 33 countries, completes the high-tech quartet. Its SmartBin IoT technology and ETH Zurich collaboration represent the intersection of Zug's industrial heritage and digital innovation. (See §13 for the full Bossard deep dive.)
The canton also hosts Luxoft (a DXC Technology company specializing in digital engineering), Bitcoin Suisse (one of the earliest crypto-financial services firms), and a growing ecosystem of deep-tech startups in areas ranging from cleantech to artificial intelligence. The Lucerne University of Applied Sciences and the Institute for Financial Services Zug (IFZ) provide applied research support.
Within Switzerland, the Canton of Zug has the highest density of international headquarters in globally leading industry clusters. The Zug Economic Promotion office documents an extraordinary concentration of global decision-making authority — this is not a collection of representative offices, but operational headquarters that run worldwide divisions.
| Sector | Key HQs in Zug | Combined Global Revenue |
|---|---|---|
| Commodity Trading & Mining | Glencore (global) | $230.9B |
| Building & Infrastructure | Siemens Smart Infrastructure (global) | €21.4B |
| Smart Metering & Energy | Landis+Gyr (global) | ~$1.8B |
| Industrial Fastening | Bossard (global) | CHF 986M |
| Diagnostics | Roche Diagnostics International (global) | Part of CHF 58B Roche Group |
| Life Sciences | Biogen (international), J&J MedTech, AstraZeneca, BMS | Combined $150B+ |
| Consumer Products | Coca-Cola HBC (European), Canada Goose, Galderma, RBI/Burger King | Combined $30B+ |
| Financial Services | Partners Group (global — CHF 149B AUM) | CHF 2.2B revenue |
| Private Equity | Partners Group, various PE/VC firms | — |
| Blockchain/Crypto | Ethereum Foundation, Solana, Cardano, Bitcoin Suisse | $383B ecosystem valuation |
The diversity is what sets Zug apart from specialized hubs like Dublin (tech-heavy) or Luxembourg (financial services-heavy). When a single canton houses the world's largest commodity trader, a €21 billion Siemens division, the Ethereum Foundation, Roche's diagnostics nerve center, and Partners Group — all within a 15-minute drive — the resulting cross-pollination of talent, services, and institutional knowledge creates an ecosystem that is greater than the sum of its parts.
A genuine hub for global supply chain management and procurement functions has evolved in Zug over the past decade. Large multinationals operate their complete global supply chain and procurement operations from the canton, including Roche Diagnostics, Siemens Smart Infrastructure, Landis+Gyr, V-Zug, Bossard, Johnson & Johnson, SHL Medical, Medela, Galderma, and Glencore. Additionally, companies such as Anheuser-Busch InBev, Crown Packaging, Eviosys, and Glatfelter have established their global procurement functions in Zug — attracted by the convenient Central European timezone, stable telecommunications infrastructure, and access to an international talent pool.
The procurement cluster creates a self-reinforcing talent market: procurement professionals can switch employers without relocating, creating the kind of liquid labor market that deepens individual expertise and makes Zug increasingly attractive for new entrants. A supply chain director leaving Glencore can move to Siemens, Roche, or AB InBev — all within the same canton. This career mobility is rare in European locations and directly parallels the dynamics that make London attractive for finance professionals.
Switzerland handles approximately 35% of global oil trading, 60% of metals, 50% of cereals, and 40% of sugar — despite having no natural resources of its own. At the center of this extraordinary paradox sits Glencore plc, headquartered in Baar (Canton Zug), the world's largest commodity trader and one of the world's largest companies.
| Metric | Value | Context |
|---|---|---|
| Revenue (2024) | $230.9 billion | 6% increase over 2023; among top 20 companies globally by revenue |
| Global Employees | 84,146 | Across mining, processing, refining, transport, and marketing |
| Baar HQ Employees | 1,000+ | From 60+ nations; includes Executive Board and all Group functions |
| London Stock Exchange | FTSE 100 | One of the largest components by market capitalization (~$82B) |
| Commodities Traded | 60+ | Copper, cobalt, nickel, zinc, coal, crude oil, grains, sugar |
Glencore's Baar headquarters houses the Executive Board, all Group functions (finance, compliance, sustainability), and the marketing departments for metals, minerals, and coal. These are the teams responsible for the trading, logistics, and risk management operations that move raw materials across six continents. The company also invests deeply in cantonal life — supporting the Kunsthaus Zug, the Gemeinnützige Gesellschaft Zug, EV Zug (the canton's ice hockey team), and student initiatives including Swissloop Tunneling at ETH Zurich, which won the Champion Award at the "Not-a-Boring Competition" in Texas in 2024.
Glencore's presence anchors an entire ecosystem of commodity-adjacent businesses in Zug: trading support services, logistics firms, commodity-focused legal and accounting practices, trade finance specialists, and inspection and certification companies. The Zug Commodity Association (ZCA) represents the canton's trading community. While Geneva-based Vitol, Trafigura, Mercuria, and Gunvor complete the top five Swiss commodity traders, Zug's Glencore remains the undisputed global leader in scale and scope — combining trading, mining, and processing in a vertically integrated model that no competitor fully replicates.
In early 2026, Glencore continues to make strategic moves: a proposed acquisition by a US-backed Orion Critical Mineral Consortium of a strategic stake in Glencore's DRC assets signals the commodity sector's growing intersection with geopolitics and the energy transition. The company's December 2025 acquisition of a majority stake in FincoEnergies (a Netherlands-based downstream fuel distributor) expands its European distribution footprint. For Zug, Glencore's continued growth from its cantonal base reinforces the local ecosystem's depth and resilience.
Zug earned the "Crypto Valley" nickname in 2013 when the Ethereum Foundation established its base in the canton. The ecosystem has since grown to encompass 512 blockchain companies in Zug alone (of 1,290 across Switzerland and Liechtenstein as of 2024), with the top 50 companies carrying a combined valuation exceeding $383 billion. The largest — Ethereum ($273 billion), Solana ($43 billion), Cardano ($21 billion), and Polkadot ($10 billion) — are all headquartered in the canton.
However, framing Zug exclusively through the blockchain lens misrepresents the canton's economy. Crypto Valley companies represent roughly 2% of Zug's 24,300 registered businesses. The financial services sector alone (approximately 2,000 firms) dwarfs the blockchain count. Life sciences (250+), high-tech manufacturing, commodity trading, and consumer products form the dominant economic mass. Blockchain is a vibrant and growing segment — but it is one cluster among many, not the defining characteristic of Zug's business identity.
What the Crypto Valley narrative does illustrate is Zug's regulatory agility. When blockchain emerged, the cantonal and federal regulators adapted quickly — FINMA issued guidance, the city of Zug began accepting Bitcoin for municipal payments in 2016, and regulatory clarity attracted global talent. This same pragmatic, innovation-friendly approach applies across all sectors, from life sciences licensing to fintech sandbox frameworks.
Roche Diagnostics International, headquartered in Rotkreuz since 1969, is the largest private-sector employer in the Canton of Zug. The site employs over 2,990 people from 79 nations and trains more than 171 apprentices across 11 vocational fields — making it both an economic anchor and a talent pipeline for the broader region. Rotkreuz is one of the most important sites for the Diagnostics division of the Roche Group, bringing together all central functions and business areas under one campus.
The Rotkreuz site encompasses research, development, and production of in vitro diagnostic systems — fully automated testing platforms for clinics, laboratories, and doctors' practices. In addition to Roche Diagnostics International Ltd, the affiliates Roche Diagnostics (Switzerland) Ltd (Swiss sales organization) and Roche Diabetes Care (Switzerland) Ltd (Accu-Chek brand glucose monitoring, insulin pump systems, and continuous glucose monitoring) are co-located at the campus. Employees span disciplines from IT and physics to chemistry, molecular biology, medicine, marketing, and business sciences — creating a genuinely interdisciplinary research environment.
The campus has undergone significant modernization in recent years, transforming into one of the most modern employer sites in central Switzerland. Roche Diagnostics actively participates in the cantonal Klima-Charta Zug+ initiative, hosting the project's first summit in March 2024 under the motto "Intelligent solutions for climate-friendly Zug companies." The company's commitment to the region extends beyond employment — its annual Volunteering Week sends employees to support charitable institutions across the canton, reinforcing the deep integration between Roche and the Zug community.
For the broader life sciences ecosystem, Roche's anchor presence in Rotkreuz creates gravitational pull. Suppliers, service providers, contract research organizations, and specialized legal and consulting firms have clustered around the campus, generating the network effects that make Zug's medtech corridor self-reinforcing. As Roche's CEO Thomas Schinecker noted in December 2024, the company's headcount remains "constant to slightly increasing" — a signal of long-term commitment to the Zug location.
Landis+Gyr is perhaps the purest expression of Zug's industrial DNA. Founded in 1896 in the city of Zug by technician Richard Theiler and entrepreneur Adelrich Gyr as "Theiler & Co." — originally manufacturing electricity meters — the company has grown over 129 years into a global leader in smart energy management solutions. Listed on the SIX Swiss Exchange (ticker: LAND), Landis+Gyr today operates in over 30 countries and serves more than 3,500 utility companies worldwide.
By 1914, Landis+Gyr was the largest employer in the Canton of Zug with over 800 employees. It went global in the 1920s with offices in New York and Melbourne, and by 1970 employed 14,000 people — 5,200 of them in Zug. The company's journey through the 20th century mirrors Zug's own transformation: from a local manufacturer to a global technology company competing at the highest level. After ownership changes (Siemens acquired parts of the group; Toshiba bought the metering business for $2.3 billion in 2011), Landis+Gyr re-listed on the SIX in 2017 and has since charted an independent course.
| Metric | Value | Context |
|---|---|---|
| Record Backlog | ~$4.6 billion | Book-to-Bill 1.5x in FY 2024, all regions above 1x |
| Licensed Endpoints | 87+ million | MDMS processes data across 20 states and 9 countries |
| Google Partnership | 7-year strategic | Cloud-based grid intelligence and IoT platform |
| Frost & Sullivan | 9x Winner | Global Company of the Year in AMI sector since 2013 |
| US Listing | Targeted 2026 | Transitional dual listing period planned |
The company's strategic transformation focuses on three pillars: Smart Metering (the core business), Grid Edge Intelligence (computing intelligence at the network edge), and Smart Infrastructure (guarding critical infrastructure). Its seven-year strategic partnership with Google brings cloud-based analytics to utility IoT networks, processing over 1.4 billion data points daily in the TEPCO project alone — the world's largest utility IoT network. In October 2025, IDC MarketScape named Landis+Gyr a Leader in Utility Meter Data Management Systems.
Critically for Zug's business narrative, Landis+Gyr is actively pursuing a US listing targeted for 2026, given that the majority of group revenues and adjusted EBITDA is generated in the Americas. The company already reports according to US-GAAP and in US dollars. A dual listing would maintain Zug's Swiss Exchange presence while accessing deeper US capital markets — a move that underscores the sophistication of companies built in and from this canton.
No company better embodies Zug's deep industrial heritage than the Bossard Group. Founded in 1831 as a hardware store by Franz Kaspar Bossard-Kolin — the same year as the founding of Belgium — Bossard has operated continuously from Zug for 194 years. Today it is a global leader in industrial fastening and assembly technology solutions, listed on the SIX Swiss Exchange (ticker: BOSN), generating CHF 986.4 million in sales in fiscal year 2024 with approximately 3,000 employees across 84 locations in 33 countries.
Bossard's evolution traces the arc of Zug's economy: from a local hardware store to a regional distributor (1930s-1950s), to a national enterprise (1960s), to a publicly listed global company (IPO 1987), to a technology-driven Industry 4.0 pioneer. The company works with 4,600 manufacturers worldwide and maintains an addressable market potential estimated at $35 billion in the global industrial fasteners sector. Its product range encompasses over one million fastening solutions, customer-specific application products, and services in Smart Factory Logistics and Assembly Technology.
Bossard's SmartBin technology represents Zug's convergence of manufacturing heritage and digital innovation. These intelligent containers for automated warehouse management embed sensors, wireless modules, and microcontrollers that record inventory levels several times daily, transmitting data wirelessly to Bossard's proprietary ARIMS (Automated Replenishment Inventory Management System) IoT cloud. Energy-saving firmware developed in-house enables operation with a single battery for up to five years — a world-class benchmark. In July 2025, the Bossard Exploration Lab — a collaboration with the Feasibility Lab at ETH Zurich — delivered its first industrialization-ready project: a rechargeable lithium iron phosphate battery that reduces SmartBin battery waste by over 50%.
In the past decade, Bossard has completed over 15 acquisitions to expand its geographic reach and product capabilities. Recent moves include the French Aero Negoce International (aerospace fastening, July 2024), Belgian Dejond Fastening NV (blind rivet nuts and the proprietary Tubtara® brand, July 2024), and the German Ferdinand Gross Group (one of Germany's leading fastening technology distributors, January 2025). These acquisitions extend Bossard's presence in the aerospace sector (complementing the 2019 Boysen/SACS acquisition), establish manufacturing capability in specialized rivet technology, and deepen its footprint in the critical German market. CEO Daniel Bossard — a member of the founding family — drives a strategy that balances organic innovation with inorganic growth.
Bossard's connection to Zug's community runs deep. The company holds naming rights to the Bossard Arena, home of EV Zug (ice hockey), and its sustainability "Strategy 200" — targeting the company's 200th anniversary in 2031 — aims for a 50% reduction in Scope 1 and 2 emissions and net zero by 2040.
Approximately one in four Swiss holding companies is registered in Zug — over 6,300 entities. This concentration reflects the canton's unique combination of the lowest headline rate (11.85%), near-complete tax exemption on subsidiary dividends through the participation exemption (qualifying threshold: 10%+ shareholding or CHF 1 million+ fair value), favorable capital tax treatment (participations taxed at just 2% of nominal value for capital tax purposes), and access to Switzerland's network of 100+ double taxation agreements.
| Feature | Zug Treatment | Benefit |
|---|---|---|
| Participation Exemption | Near-full tax relief on dividend income from qualifying subsidiaries | Eliminates double taxation on intra-group distributions |
| Capital Gains on Participations | Exempt if participation held >1 year and represents 10%+ or CHF 1M+ | No tax on disposal of subsidiary shares |
| Capital Tax | Participations valued at 2% of nominal for capital tax calculation | Dramatically reduces cantonal capital tax burden |
| Withholding Tax | 35% federal WHT on dividends (refundable under DTAs for qualifying treaty residents) | DTA network covers 100+ jurisdictions |
| IP Regime (STAF) | 90% patent box deduction + 50% R&D super-deduction | Effective IP income tax as low as 4-6% |
| Step-Up Provisions | Companies relocating IP to Switzerland can amortize hidden reserves | Tax-efficient onshoring of IP from abroad |
Under the STAF reforms that took effect in 2020, Switzerland abolished the old preferential holding and domiciliary company regimes. In their place, Zug implemented OECD-compliant instruments that provide comparable — and in some cases superior — benefits: the patent box (90% relief on qualifying IP income), R&D super-deduction (50% additional deduction), step-up provisions for companies relocating IP to Switzerland, and the participation exemption for investment income. The combined relief cap of 70% ensures at least 30% of profit remains taxable, maintaining international credibility while delivering effective rates far below the European average.
For multinational groups establishing European or global holding structures, Zug offers several structural advantages over competing jurisdictions. Unlike the Netherlands (which faces increasing scrutiny over "letterbox" companies and has tightened substance requirements), Zug's ecosystem of 24,300+ operating companies provides genuine economic substance. Unlike Luxembourg (which has faced EU state aid investigations), Zug's regime is domestically legislated and OECD-compliant. And unlike Ireland (which raised its headline rate to 15% to align with Pillar Two), Zug maintains its 11.85% rate for companies below the Pillar Two threshold — the vast majority of the canton's business population.
For executives and entrepreneurs considering relocation, Zug's personal tax framework is as attractive as its corporate regime. The maximum personal income tax rate (combining federal, cantonal, and communal) is approximately 22.2% — the lowest in Switzerland. In 2024, the cantonal government further lowered income tax rates and doubled the tax-free allowance to CHF 200,000 for individuals and CHF 400,000 for married couples.
| Tax Category | Zug | Zurich | Geneva |
|---|---|---|---|
| Max. personal income tax | ~22.2% | ~39.0% | ~43.2% |
| Wealth tax (effective top rate) | ~0.23% | ~0.65% | ~1.0% |
| Property transfer tax | None | Varies | 3% |
| Property tax | None | Varies | Yes |
| Capital gains on shares | Exempt | Exempt | Exempt |
Switzerland does not levy capital gains tax on the sale of privately held movable assets — shares, bonds, and fund units — by individuals. This makes Zug exceptionally attractive for entrepreneurs planning company exits, family business succession, or portfolio rebalancing. By comparison, Germany taxes capital gains at up to 26%, France at 30%, and the UK at up to 24%.
Zug also uniquely charges neither property transfer tax on real estate transactions nor annual property tax — unlike many Swiss cantons. Lump-sum taxation (forfait fiscal) is available for wealthy foreign nationals who take up residence without working in Switzerland, with Zug imposing a minimum taxable base of approximately CHF 1 million for non-EU nationals. The federal minimum stands at CHF 434,700.
Switzerland's work permit system operates on a two-tier framework. EU/EFTA nationals benefit from the bilateral Agreement on Free Movement of Persons and can obtain B permits relatively straightforwardly. The process involves an employment contract with a Swiss company, registration with the cantonal migration office, and issuance of a five-year B permit (renewable).
Non-EU/EFTA nationals face quota restrictions, with permits allocated annually by the federal government to each canton. However, exceptions exist for senior executives, specialists with unique qualifications that cannot be sourced domestically, and individuals applying for lump-sum taxation. The cantonal migration office in Zug works closely with businesses to facilitate international talent acquisition, reflecting the same pragmatic, service-oriented approach that characterizes the canton's administrative culture.
For families relocating to Zug, the canton offers excellent international schooling options: the International School of Zug and Luzern (ISZL, IB curriculum), Institut Montana Zugerberg (bilingual Swiss/international programs), and SIS Swiss International School (bilingual German/English). Proximity to Zurich provides access to additional international schools and universities.
Zug consistently ranks among the most livable locations in Switzerland and globally. The canton sits on the shore of Lake Zug, with the Alps visible on clear days. The city of Zug itself covers just 34 square kilometers and retains a medieval old town alongside modern commercial districts. Safety, healthcare quality, and public services rank among the highest in Europe.
The canton offers a compact, walkable urban environment with a cosmopolitan population — 30% of residents come from over 140 countries, creating a genuinely international community. German is the official language, but English is widely spoken in business. French, Italian, Portuguese, and Spanish are commonly heard. The Swiss rail network connects Zug to Zurich in 25 minutes, Lucerne in 20 minutes, and Zurich Airport in under an hour — making it practical to live in a lakeside town while accessing the resources of a major metropolitan area.
Real estate, however, reflects the canton's prosperity. Zug's property prices are among the highest in Switzerland, driven by demand from international executives and wealthy individuals attracted by the tax environment. Rental costs for a modern three-bedroom apartment in Zug city start at approximately CHF 3,000-4,000 per month, with premium properties significantly higher.
The Canton of Zug operates a dedicated Economic Promotion office (Amt für Wirtschaft und Arbeit / AWA) that provides free, confidential support to companies considering relocation to or expansion within the canton. Led by Beat Bachmann — who holds a Master of Arts in Finance from the University of St. Gallen and brings over 20 years of management experience in national and international markets — the office functions as a genuine one-stop-shop for incoming businesses.
The canton's approach is distinctively pragmatic. As multiple international executives have noted publicly, Zug's administration is "efficient, pragmatic, and customer-oriented when helping global staff relocate." This service-oriented mindset — from the commercial register office to the migration authority to the tax administration — is a meaningful competitive advantage that is difficult to replicate in larger, more bureaucratic jurisdictions. When a US biotech founder needs a company registered, a tax ruling obtained, a work permit processed, and an international school place secured — the Zug Economic Promotion office coordinates the entire process across agencies, eliminating the inter-departmental friction that plagues relocations to Paris, Berlin, or Amsterdam.
The office also facilitates introductions to private-sector partners in the local economy — from banks (UBS, Zuger Kantonalbank, AMINA Bank) to industry associations and research institutions. This human network is as valuable as the formal services, connecting newcomers to the canton's business community in weeks rather than months.
In the post-Pillar Two landscape, the traditional "low tax" narrative is evolving. With a 15% floor for large MNEs, jurisdictions can no longer compete on rates alone. Zug's strategic positioning in 2026 rests on a combination of factors that no single European competitor can match.
| Factor | Zug | Dublin | Amsterdam | Luxembourg |
|---|---|---|---|---|
| Corporate tax | 11.85% | 15.0% | 25.8% | 23.87% |
| Capital gains (individuals) | Exempt | 33% | 26.9% | Varies |
| Political stability | AAA | AA- | AAA | AAA |
| LEP grants (R&D) | CHF 150M/yr | R&D credits | Innovation box | IP box |
| Patent box relief | 90% | 6.25% eff. | 9% eff. | 5.2% eff. |
| Property tax | None | Yes | Yes | Yes |
| DTAs | 100+ | 76 | 100+ | 80+ |
Switzerland's additional advantages — no capital gains tax on share sales for individuals, AAA sovereign credit rating, Swiss franc stability, access to the EU market through bilateral agreements, 100+ double taxation agreements, and the FINMA regulatory framework — create a business environment that combines fiscal efficiency with institutional credibility. For companies that need to be "somewhere real" — not in a brass-plate jurisdiction that raises due diligence flags — Zug offers the rare combination of substance, prestige, and tax efficiency.
A business ecosystem is only as strong as its talent pipeline. Zug benefits from proximity to some of Europe's most prestigious educational institutions, complemented by a robust network of international schools that serve the families of relocating executives.
| Institution | Distance | Relevance to Zug Business |
|---|---|---|
| ETH Zurich | 40 min | Top 10 global university; engineering, CS, life sciences, materials science |
| University of Zurich | 40 min | Top 5 in Europe for biomedical sciences; law, economics, finance |
| Lucerne University (HSLU) | 20 min | Applied sciences; IFZ (Institute for Financial Services Zug) based here |
| University of Lucerne | 20 min | Blockchain research institute (CHF 40M, 5 years, canton co-funded) |
| University of St. Gallen | 90 min | Top European business school; MBA, finance, management |
The canton directly invests in research infrastructure. Zug contributed nearly CHF 40 million over five years to establish a blockchain research institute at the University of Lucerne and Lucerne University of Applied Sciences — aiming to make the canton a global center for distributed ledger research. The Institute for Financial Services Zug (IFZ) at HSLU produces applied research on banking, insurance, asset management, and fintech — directly serving the knowledge needs of the local financial services cluster.
Bossard's Exploration Lab partnership with ETH Zurich's Feasibility Lab exemplifies the university-industry linkage: more than 50 Bossard employees collaborated with ETH students to develop 30+ project ideas, with the first — a rechargeable SmartBin battery — reaching industrialization within six months. Roche Diagnostics trains 171+ apprentices at Rotkreuz, feeding directly into the cantonal STEM workforce.
The availability of world-class international schooling is frequently cited by relocating executives as a decisive factor. ISZL alone enrolls students from 60+ nationalities, creating a peer community that mirrors the cosmopolitan nature of Zug's business environment. For families transitioning from London, Singapore, New York, or Dubai, the adjustment period is measured in weeks rather than months.
Zug's prosperity comes with a price tag. The canton has some of the highest real estate values in Switzerland, driven by sustained demand from international executives, wealthy individuals, and companies attracted by the tax environment. Understanding the cost structure is essential for any relocation decision.
| Property Type | Indicative Range | Notes |
|---|---|---|
| 3-bed apartment (rent, city) | CHF 3,000–5,000/mo | Modern builds; premium lakeside significantly higher |
| 4-bed house (rent) | CHF 5,500–9,000/mo | Depends on municipality; Baar, Cham, Hünenberg more affordable |
| Purchase price (apartment, m²) | CHF 10,000–18,000 | Zug city center; outer municipalities 20-30% lower |
| Property transfer tax | None | Unlike Zurich, Geneva, Vaud — Zug charges zero |
| Annual property tax | None | Unique advantage among Swiss cantons |
The absence of both property transfer tax and annual property tax partially offsets higher purchase prices. An executive buying a CHF 3 million apartment in Zug saves approximately CHF 60,000-90,000 in transfer tax compared to Geneva (3%) or Zurich (variable), plus recurring annual savings on property tax that compounds over time. For long-term residents, Zug real estate has proven to be an excellent store of value, with prices supported by the continuous inflow of high-income residents.
Cost of living beyond housing is broadly in line with other premium Swiss locations. Groceries run approximately 20-30% above European averages. Private health insurance (mandatory in Switzerland) costs approximately CHF 350-500 per adult per month depending on the deductible level. Childcare for pre-school children is expensive (CHF 100-150 per day), though subsidized municipal options exist. The Zug Economic Promotion office provides detailed cost-of-living calculators and can connect incoming families with relocation consultants who specialize in managing the transition.
The eleven municipalities within the canton offer varying price-to-value ratios. Zug city commands the highest premiums; Baar, Cham, Hünenberg, Steinhausen, and Risch-Rotkreuz offer somewhat more affordable alternatives with excellent public transport connections — all within 15 minutes of the city center. For families prioritizing international schooling, Baar and Hünenberg place ISZL campuses within walking or cycling distance.
For executives and entrepreneurs evaluating a move to Zug, the following timeline provides a realistic overview of the relocation process — from initial inquiry to operational launch.
Quick answers to the most common questions about doing business in Zug.
Zug offers Switzerland's lowest corporate tax rate at 11.85%, the highest density of international headquarters in the country, a multilingual workforce (30% of the 130,000 population from 140+ countries), proximity to Zurich (25 minutes by train), no property transfer tax, no property tax, and a business-friendly cantonal administration that processes company formations in 2-4 weeks with advance tax rulings available.
A GmbH requires CHF 20,000 minimum capital (fully paid in) and an AG requires CHF 100,000 (50% paid in). The process involves notarizing articles of association, depositing capital at a Swiss bank, registering with the Zug Commercial Register, and obtaining a UID number. Standard incorporation takes 2-4 weeks. FINMA-regulated activities require 6-18 months for licensing.
Approved by Zug voters on November 30, 2025 with 66.71% support, the LEP allocates up to CHF 150 million per year from 2026-2028 in direct grants to companies for R&D, innovation, and sustainability initiatives. Funded by additional revenues from the OECD Pillar Two minimum tax, applications for 2026 are due by June 30, 2026.
Zug hosts world-class clusters in life sciences (250+ companies including Roche Diagnostics, Johnson & Johnson, Biogen, AstraZeneca), commodity trading (Glencore — $217B revenue), high-tech (Siemens Smart Infrastructure, Landis+Gyr, V-Zug), financial services (Partners Group — $185B AUM, 2,000+ firms), blockchain (512 companies, $383B top-50 valuation), and global supply chain/procurement (AB InBev, Crown Packaging, Siemens).
The effective corporate tax rate is approximately 11.85%, combining federal (7.83%), cantonal, and communal taxes — the lowest in Switzerland. With STAF patent box relief (90% on qualifying IP income) and R&D super-deduction (50%), innovative companies can achieve effective rates as low as 4-6%. OECD Pillar Two imposes a 15% floor for MNEs with EUR 750M+ consolidated revenue.
Over 250 companies employing approximately 6,200 people. Global HQs include Roche Diagnostics (Rotkreuz), Medela, SHL Medical, and Schiller. J&J MedTech maintains a significant international campus. Over 60 US biotechs — including Alnylam, Blueprint Medicines, Insmed, and Cytokinetics — have established European or international bases in Zug in the last decade.
No. Unlike many Swiss cantons, Zug charges neither property transfer tax on real estate transactions nor annual property tax. Capital gains on privately held shares are also exempt at the federal level. This trifecta of exemptions makes Zug uniquely attractive for both personal wealth and corporate property holdings.
The Zug Economic Promotion office (economy.zg.ch) provides free, confidential support including site selection, introductions to legal and tax advisors, work permit guidance, tax ruling coordination, and international school information. The cantonal administration is consistently praised by international executives for its pragmatic, efficient, and customer-oriented approach.
Zug offers lower corporate tax (11.85% vs. 15-25.8%), zero capital gains on individual share sales (vs. 26-33% elsewhere), no property tax, CHF 150M/year in LEP grants, a 90% patent box, 100+ DTAs, AAA sovereign credit, and Swiss franc stability. Post-Pillar Two, Zug competes on substance, institutional credibility, and innovation incentives — not just rates.
V-Zug is a Swiss premium household appliance manufacturer listed on the SIX Swiss Exchange. Its former industrial site in Rotkreuz is being transformed into the Tech Cluster Zug — a mixed-use innovation campus housing tech companies, startups, research institutions, and residential space. The project symbolizes Zug's evolution from manufacturing to knowledge-based industries.
Siemens Smart Infrastructure operates its global headquarters from a CHF 250 million carbon-neutral campus in Zug, employing 1,700+ people locally. The division generated €21.4 billion in revenue in fiscal year 2024 with a 17.3% profit margin and approximately 78,500 employees worldwide. Zug has been home to Siemens Building Technologies since 1998 and became the SI global headquarters when the operating company was established in 2019.
The STAF (Federal Act on Tax Reform and AHV Financing) introduced OECD-compliant tax instruments in 2020. The patent box provides a 90% deduction on qualifying IP income (one of the most generous in the OECD). The R&D super-deduction allows companies to deduct 150% of qualifying R&D expenses (100% actual cost + 50% uplift). Combined with the canton's base rate, innovative companies can achieve effective corporate tax rates as low as 4-6%. A 70% total relief cap ensures minimum 30% taxable profit.
Glencore plc, headquartered in Baar (Canton Zug), is the world's largest diversified commodity trading and mining company. It generated $230.9 billion in revenue in 2024, employs 84,146 people globally, and trades over 60 commodities. The Baar headquarters houses 1,000+ employees from 60+ nations, including the Executive Board and all Group functions. Glencore is listed on the London Stock Exchange as a FTSE 100 component with approximately $82 billion market capitalization.
Lump-sum taxation (forfait fiscal) is available for wealthy foreign nationals who take up residence in Switzerland without working in the country. Instead of being taxed on worldwide income, the individual is taxed based on their annual living expenses. Zug applies a minimum taxable base of approximately CHF 1 million for non-EU nationals. The federal minimum stands at CHF 434,700. This regime is particularly attractive for high-net-worth individuals, retired executives, and individuals managing private investments.
Zug has some of the highest real estate values in Switzerland: modern 3-bedroom apartments rent for CHF 3,000-5,000/month, while 4-bedroom houses range from CHF 5,500-9,000/month. Purchase prices run CHF 10,000-18,000/m² in the city center. However, the absence of property tax and property transfer tax partially offsets higher prices. Mandatory health insurance costs CHF 350-500 per adult per month. The eleven municipalities offer varying price levels — Baar, Cham, Hünenberg, and Steinhausen are 20-30% more affordable than Zug city while maintaining excellent transport links.
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