Country profile

Switzerland: Zug

Best : For maximum stability and asset safety, on a high budget.

Zug is a small Swiss canton (about 130,000 people) near Zurich, known for one of the lowest corporate taxes in the country and for 'Crypto Valley'. Switzerland (about 9 million people) offers a strong franc, solid banks and canton-level taxation; living costs and property are among the world's most expensive, and non-residents face purchase restrictions (Lex Koller).

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International rankings

The main public indices scoring business climate, economic freedom, corruption, peace and domestic safety. Figures copied from the official editions; a weak rank shows where to look closer.

Index Score Rank
Doing Business 2020Banque mondiale / World BankScore 0–100, rank out of 190 economies (1 = best).76.6#36 / 190
B-READY 2025Banque mondiale / World BankThree pillars scored 0–100 (regulatory framework, public services, operational efficiency). No overall rank: the World Bank publishes a quintile per pillar across 101 economies.Not covered
Index of Economic Freedom 2026Heritage FoundationScore 0–100, rank out of 184 countries (1 = freest).83.7#2 / 184
Corruption Perceptions Index 2025Transparency InternationalScore 0–100 (100 = very clean), rank out of 182 countries.80#6 / 182
Global Peace Index 2026Institute for Economics & PeaceScore 1–5 (lower = more peaceful), rank out of 163 countries.1.363#3 / 163
GPI 2026 — Societal Safety and SecurityInstitute for Economics & PeaceScore 1–5 (lower = safer), rank out of 163 countries (1 = safest).1.433#8 / 163

Scope : Indices score Switzerland as a whole; none measures the canton of Zug alone.

  • Doing Business 2020 : Last published edition (data as of May 2019). The World Bank discontinued the series in 2021 after data irregularities: read it as a historical benchmark.
  • B-READY 2025 : Successor to Doing Business. Sample averages: 66.3 / 54.0 / 60.0. The 2026 edition (over 160 economies) is due by end-2026.
  • Index of Economic Freedom 2026 : Hong Kong has not been graded separately since 2021 (folded into China).
  • Corruption Perceptions Index 2025 : Published February 2026.
  • Global Peace Index 2026 : Overall rank: conflict, domestic safety and militarisation. Day-to-day safety is the next row. Malta and Hong Kong are not covered.
  • GPI 2026 — Societal Safety and Security : Appendix C of the 2026 GPI: homicide, violent crime, terrorism and instability. Excludes armed conflict and militarisation. Malta and Hong Kong are not covered.

Geopolitical risk

Tax by profile

Tax and contributions actually paid on a reference case, for a newcomer who is tax resident in 2026. Where a special regime is open to them, it is applied and flagged. The score out of 10 follows from the effective rate.

Rentier

estimate

7.5/10

Effective rate ≈ 12%

  • Private capital gains not taxed
  • Dividends and interest taxed (Zug, low scale), wealth tax and non-employed AHV on about CHF 2.3M of assets

Lump-sum taxation (based on spending) exists in Zug, but its minimum base exceeds CHF 400,000: no benefit at this income level.

Employee

estimate

7/10

Effective rate ≈ 15%

  • AHV, IV, EO, unemployment, pension and accident: about 11%
  • Federal, cantonal and municipal tax in Zug: about 4%

Entrepreneur

estimate

7/10

Effective rate ≈ 15%

  • Effective profit tax in Zug: about 11.9%
  • Dividends taxed at 50% (canton) and 70% (federal): about 3.4%
Reference cases and scoring
  • Rentier: €100,000 a year from a foreign portfolio (€40,000 dividends, €20,000 interest, €40,000 gains on listed shares), no other activity.
  • Employee: €60,000 gross a year paid by a local employer, single with no children. Employee contributions included, employer share excluded.
  • Entrepreneur: €100,000 profit from a small local business, fully paid to the owner through the most common route (company and dividends, or sole trader).

Score = 10 minus 0.2 per point of effective rate (0% gives 10, 25% gives 5, 50% or more gives 0), rounded to the half point. Foreign withholding taxes and employer contributions are not counted.

Indicative figures as of October 2026 · Main source : zg.ch. Not tax advice.

Business: incorporating

Zug embodies entrepreneurial Switzerland: cantonal effective rates often around 12%, serious governance, and premium branding. Structural cost is very high: capital, fiduciary, domicile, and local compliance rule out discount shells.

≈12%

Corporate tax

$25,000–$40,000

Setup

USD, indicative

$8,000–$20,000

Per year

USD, indicative

6/10

Ease

Ranking

6/10

Banking

Ranking

8/10

CFC

Pas de CFC fédéral classique

GmbH: CHF 20,000 minimum capital locked up plus notary/registry often CHF 2–5k. Resident director / domiciliation / accounting: thousands to tens of thousands CHF per year. The most expensive MVP hub: you pay for prestige, stability and banking trust, not structural thrift. Not comparable to a US LLC or Estonian OÜ.

Who it fits

  • Holding, IP, or trading with Swiss fiduciary budget and clients demanding CH branding
  • Founders accepting local presence or agents and meaningful share capital
  • Stack with Swiss residence or Zug canton relocation plan

The real drawbacks

  • Bootstrapped solo: fiduciary alone exceeds Wyoming budget
  • Activity without Swiss economic justification: authorities and banks refuse
  • Expecting anonymity. UBO transparency and Swiss registry are strict

Full business sheet: substance, CFC, setup path, FAQ

Real estate: investing

3.0 %

Net yield

indicative

≈ 480 k€

30 m² studio

Zurich

~5%

Purchase costs

+45%

10-year prices

+20%

5-year prices

Restriction : Lex Koller: purchase restricted for non-residents

  • Rental income tax : progressif
  • Capital gains (personal holding) : 0% progressif (après ~5 ans)
  • Public debt / GDP : 39%
  • Currency : CHF

Reference listings portal : Homegate

Compare this market in Real-estate Ranking

Moving there: living and residence

6.1/10

Liberty score

equal weights

8–22%

Income tax

0%

Inheritance

Regulated

Homeschool

Residence routes

  • B permit (EU/EFTA): Annual renewable B permit
  • Non-EU permit (quota): L or B permit by duration, limited annual quota
  • C permit (settlement): Permanent C permit (unless revoked)

Reference cities

  • Zurich (cost high)
    Clean, safe, perfectly run, with some of the best transport in Europe. The real obstacle is housing: chronic shortage, competing applications and very high rents.
  • Genève (cost high)
    An international city (UN, banks, commodity trading) where daily life runs in French. Housing is scarce and expensive, many people live across the border in France, and petty crime is visible around the station and Pâquis.

All residence routes, steps and costs

Go deeper on Switzerland: Zug

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Indicative Liberty Stack data · Methodology · Rankings : Doing Business 2020, B-READY 2025, Index of Economic Freedom 2026, Corruption Perceptions Index 2025, Global Peace Index 2026, GPI 2026 — Societal Safety and Security.