Three-Tier Tax System
Switzerland’s taxes operate at three levels: federal, cantonal and municipal. Cantons compete for businesses through lower rates, creating significant optimization opportunities.
Corporate Tax Rates by Canton
Zug: ~11.9% effective — Switzerland’s Crypto Valley.
Schwyz: Below 14% — excellent for SMEs and family businesses.
Lucerne: ~12.3% with excellent central location.
Holding Company Exemptions
Swiss holding companies benefit from the participation exemption: dividends and capital gains from qualified participations are substantially tax-free, making Switzerland ideal for international group structures.
Double Taxation Treaties
Switzerland has signed 100+ DTAs ensuring income is not taxed twice. Withholding taxes on dividends, interest and royalties are significantly reduced for treaty partners.
