Welcome
Zug: small world – big business Zug: small world - big business In the heart of Europe – in the middle of Switzerland
Part of the Greater Zurich Area
North-south axis Gotthard (rail and road)
Access to EU Market with 700 million consumers Greater Zurich Area (GZA) - a leading location in Europe
World class innovation strength. Regional & technological comparison
Source: BAK Economics, Swiss Federal Institute of Intellectual Property, PatentSight • Population: 3.8 million (of total 8 Mio in Switzerland) encompassing nine Swiss Cantons around Zurich • Economy: more that 50% of Swiss GPD are attributable to the Greater Zurich Area • Main Sectors: Life Sciences, ICT, Deep Tech ( AI, IOT, Robotics, Sensors, Materials, Blockchain, Fintech etc.), Financial Services, Wholesale incl. Commodity Trading • Innovation & Technology: world renowned universities and research institutes are based in GZA such as ETH Zurich (#1 Tech University in Contintal Europe) / University Zurich / IBM Research Lab / BioTech Park / Disney Research Lab etc.) Greater Zurich Area (GZA) – strong tech competences enable globally leading clusters
IoT Robotics/Automation Drones/E-Mobility
Sensors Materials Computer Vision / VR / AR AI / BIG Data
Biotech Medtech Blockchain / Fintech Zug: small world – big business
• 127,600 inhabitants from 142 different nations • 115,800 workplaces (of which 39,200 commuting in) in 35,300 companies • Outstanding economic development over the past decades, highly diversified industries Highly diversified industries • Wholesale (incl. FMCG and commodity trading) • High Tech / Deep Tech Industry • Life science (Pharma / Biotech / MedTech) • Financial services (Asset Mgt / Private Equity / Family Offices) • ICT (incl. Fintech und Blockchain) • Headquarters (Full HQ and single functions as Procurement & Supply Chain) Zug: a worldwide leading business location Swiss cantons' ranking 2020 - Credit Suisse
Criteria: • Tax rates for individuals and corporations • General level of education • Availability of highly qualified manpower • Transport-system based accessibility
Zug ranked #1 in 21 out of 22 years. Source: Credit Suisse Oct. 2020 Swiss cantons' ranking - Credit Suisse 2018/2025
Source: Credit Suisse Mai 2019 Swiss cantons' ranking - UBS 2019
Criteria: • Economic structure • Innovation • Human capital • Labor market Zug ranked #1 in 5 • Accessibility out of 6 rankings. • Commuter belt • Price structure • Public finance
Source: UBS Mai 2019 The best overall package
Business friendliness
Stability Taxation Talents / Education
Accessibility Internationality Quality of life
Effective business enviroment Zug: leading in political and economic stability Stability and growth • For many decades about 75% conservative voters • Multiparty political system = long-standing tradition and stability • Long-term fiscal and tax policy (net equity / long-term decreasing tax rates) • Expansion of established and dynamic growth of new companies • Planning reliability and legal certainty Zug: high availability of talents Magnet for international talents • Access to largest talent pool of approx. 1 mio. in Greater Zurich Area and Central Switzerland • Access to over 100 mio. European talents • Global top specialists • Worldwide leading universities and research institutes are located in the area Zurich/Zug/Lucerne. e.g. ETH Zurich (Swiss Federal Institute of Technology) ranked top 10 internationally and #1 in Europe for years) High percentage of highly qualified talents Persons holding a university degree
Source: Bundesamt für Statistik, Geostat, Credit Suisse Central location within Switzerland and Europe Short commuting distances within Zurich Airport: Switzerland's gateway Switzerland to the world Aargau Zürich By air:
Zug
Luzern Schwyz
Direct rail and road connection to all European cities Total commuters to Zug: 39,200 Total commuters out of Zug: 21,000 Source: Microcensus Mobilität und Verkehr; BFS 2018 20 min to Zurich (half hourly interval) Zug city trains 41-53 min to Zurich Airport (half hourly interval) Zürich Zürich Access to city center Steinhausen from all communities Baar Rigiblick
within max.15 min Neufeld Lindenpark Alpenblick
Chollermüli Cham Schutzengel Zug 20 min to Luzern ( half hour interval) Zythus Chämleten Postplatz Casino Fridbach
Oberwil Luzer n Rotkreuz Hörndli Walchwil connections per hour and direction Arth-Goldau, Erstfeld World renowned research & knowledge location Zug Institute of Financial Services Zug (HSLU) School of Computer Science and Information Technology (HSLU) Institute für Energy and Resource Efficiency (WERZ)
Zurich Swiss Federal Institute of Technology Zurich (ETHZ) University of Zurich (UZH) (20 min from Zug)
Luzern University of Lucerne University of Applied Sciences Lucerne (HSLU) (20 min from Zug) Labor market efficiency Criteria: − Redundancy costs − Hiring & firing − Cooperation in labor-employer relation − Flexibility in wage determination − Ease of finding skilled employment − Ease of hiring foreign labor − Pay and productivity − Reliance on professional management − Female participation in labor force − Male participation in labor force − Salary tax wedge
Selection of countries Source: Global Competitiveness Index 2015-2016, World Economic Forum Zug: Internationality/ highest quality of life Quality of life «The Canton of Zug offers us great international infrastructure, good schooling and political stability.» Alexandre Bueno, VP Procurement Operations, Anheuser-Busch InBev Procurement
«Our employees enjoy a wonderful quality of life. I strongly recommend Zug as a place where excellence in business infrastructure is married to a high quality of life.» Joe Vazquez, CEO, East Metals «Employees and their families appreciate the quality of life, the educational access and the healthy environment offered in Zug.» André Wismer, CPO, Siemens Smart Infrastructure Project Business International population People from 142 different nations live in the canton (total: 32,977) Germany Italy 20.34% By continents: United Kingdom Portugal Europe 88%, Asia 5%, America 4%, 32.35% Kosovo Africa 2%, Australia 1% Serbia Turkey 9.33% Spain Top 12 nations in percent: Bosnia Netherlands Austria 2.63% 6.61% France 2.68% other 2.75% 6.17% 2.98% 3.13% 4.12% 3.20%3.70%
Source: Fachstelle Statistik Kanton Zug, 2018 Integration of internationals
• Info material & news • Relocation agencies • Newcomer set • Service & international clubs (z.B. • www.zg.ch (English) International Women's Club, Kiwanis, • www.zug4you.ch and The Zug Post Lions, Rotary) • Migration Advisory Office • Various events (z.B. Grüezi Switzerland, • English-speaking authorities Back to work Seminar) Public schools (1)
• Flexible public primary schools with German classes for non-German speaking pupils • Two gymnasiums in the canton • Bilingual baccalaureate courses (Matura D/E) offered at both gymnasiums: Kantonsschule Zug and Kantonsschule Menzingen
School system in the Canton of Zug International schools (2) • SIS Swiss International School, Rotkreuz • International School of Zug and www.swissinternationalschool.ch (120 students, grades 1 – 12) Luzern, www.iszl.ch − Walterswil/Baar & Hünenberg • Four Forest Bilingual International School, Cham (1,250 students, primary years – IB/AP programs) www.four-forestschool.ch (120 students, pre-school – grade 10) • Institut Montana, Zug/Zugerberg www.montana-zug.ch • International School of Central Switzerland, (300 students, primary years – IB programs) Cham www.iscs-zug.ch (100 students, kindergarten – grade 12) Health Care System • Cantonal hospital in Baar (Zuger Kantonsspital) • Private Andreas Clinic Cham (Hirslanden Group) • Nursing homes • Home healthcare support (Spitex) • Many more hospitals in Zurich and Lucerne Crime statistics 2020 Number of criminal offences per 1,000 inhabitants 120 100 80 60 40 20 0 Canton Canton Canton Canton Canton Canton Ø Zug Basel- Bern Geneva Vaud Zurich CH City
Source: Swiss Federal Statistical Office 2020 Zug: effective business environment The spirit of Zug: friendly and efficient Our Economic Promotion team • is a «one-stop-shop» caring for companies located in Zug and supporting those interested in moving here, • answers your questions quickly and solution-minded, • acts as a long-term partner to support you in your growth, • connects you with the Zug business community, • offers a unique set of supporting material. All our services are free of charge. Support for newly settling and residing companies Our Economic Promotion Team is a free of charge «one-stop-shop» caring for companies located in Zug and supporting those in settling here. We act as a long-term partner to support you in your growth. Typical services are • assistance setting up business, getting required permits (incl. work permits) and provide contacts for service providers • help finding ideal office space (from business centers to own rent) • information and support for relocation services, integration of spouses and family (e.g. schooling) • business network: introduction to peer companies, networking platforms and to the general business community • initial support for market access / reimbursement analysis, drug registration via mandated Swiss top experts in the pharma industry • central point of contact for all matters relating to cantonal and Swiss authorities • unique set of supporting material on the Canton of Zug for the working and living space. Business infrastructure • Business support services 270 advocates 300 fiduciaries (90 organized in Fiduciary Association of Zug) > 10 banks (some providing international services) • Business premises High availability of top office space on prime locations at reasonable prices. Price range depending on location (CHF 150.- to CHF 400.- per m2 and year) • Business centers 20 business centers in the canton Zug: highly attractive tax environment Corporate profit tax and individual income tax International tax comparison
40%
BR 35% Zug: an international IN JP DE 30% leading tax location and rate US #1 in Switzerland
tax ID NL AT CN, ES 25% ITA LUX TUR NO DK VS SE profit BE RU EE ZH GRC PL GB SI Swiss cantons 20% AG TI BL RO HK SGP Countries SO JU UA LT SZ GR GE corporate 15% SH SG NE VD according to UR BS IE OW AR TG ISO code BG ZG NW GL FR HU AI LU 10% Ordinary
5%
0% 0% 10% 20% 30% 40% 50% 60% Individual income tax rate* *based on maximum effective input tax rate federal/canton/municipality Based on KPMG's Swiss Tax Report 2020 Corporate profit tax - international comparison (ordinary tax rate)
Zug 12% Ireland 13% Great Britain 19% China 25% Luxembourg 25% Netherlands 25% USA 27% India 30% Germany 30% Japan 31%
0% 5% 10% 15% 20% 25% 30% 35%
Source: KPMG's Swiss Tax Report 2020 Corporate profit tax Zug
• Total regular profit tax rate (cantonal, municipal, federal): 12% • patent box: tax relief of 90% on earnings from intellectual property • R&D costs: additional deductions of 50% of qualifying expenses • step-up: tax-neutral disclosure of hidden reserves − in case of transfer of domicile or management to CH (depreciation within 10 years) − in case of local companies (special tax rate over period of five years) • Total maximum combined tax relief for patent box, R&D deductions and step-up: 70%
Source: Tax authorities Patent Box
In order to qualify for the box a patent must
• relate to research and development activities • nexus approach: must be in Switzerland, except third party R&D abroad.
The patent box covers: registered patents.
The patent box is only applied at the level of cantonal and communal taxes. Individual income tax -international tax comparison (Maximum tax rate)
Zug 22% India 36% USA 37% China 45% Great Britain 45% Luxembourg 46% Japan 46% Germany 47% Ireland 48% Netherlands 52%
0% 10% 20% 30% 40% 50% 60%
Source: KPMG's Swiss Tax Report 2020 Intercantonal tax comparison Private individuals Zug (ZG) 5’310 Schwyz (SZ) 12’974 Appenzell (AI) 13’582 Example: Sion (VS) 13’755 - Married person with two children Stans (NW) 14’124 - Gross income CHF 150,000 Zürich (ZH) 14’179 Altdorf (UR) 14’535 - Incl. federal, cantonal, communal and church tax Sarnen (OW) 14’933 Chur (GR) 15’178 Bellinzona (TI) 15’266 Zug Aarau (AG) 15’804 Gross income: Tax in % of gross income: Frauenfeld (TG) 16’150 CHF 150,000: 3.54 % Luzern (LU) 16’272 CHF 200,000: 6.57 % Schaffhausen (SH) 16’473 Glarus (GL) 16’840 CHF 250,000: 10.29 % Genf (GE) 17’771 CHF 300,000: 13.08 % St.Gallen (SG) 18’640 Freiburg (FR) 18’826 Herisau (AR) 19’301 Liestal (BL) 19’420 Basel BS 19’935 Bern (BE) 20’139 Lausanne (VD) 20’610 Solothurn (SO) 20’637 Delémont (JU) 20’753 Neuchâtel (NE) 23’592 Source: Federal Tax Authorities 0 5’000 10’000 15’000 20’000 25’000 Genuine quality of life What we are also famous for… Contact information Department of Economic Affairs Economic Promotion Aabachstrasse 5 CH - 6301 Zug Phone +41 41 728 55 04 Mail [email protected] Internet www.zg.ch/economy Terms of use Liability waiver Use of website and copyright The contents of our website were generated with the utmost care. Individual pages and parts of the presentation "Every Zuger The Department of Economic Affairs of the Canton of Zug does not an Ambassador" may be downloaded or printed, provided provide any guarantee or assume any responsibility for correctness, that neither the copyright marks nor other legally protected reliability or completeness. The information appearing on the names or symbols are removed. Full or partial Department of Economic Affairs website may be changed at any time reproduction, transmission. modifications or use of the without prior notice. The Department of Economic Affairs of the website for public or commercial purposes are forbidden Canton of Zug shall not be liable in any way (including negligence) for without the prior written consent of the Department of damage or subsequent damage arising from access to or use of Economic Affairs of the Canton of Zug (Economic elements of the Department of Economic Affairs website. Promotion +41 41 728 55 04, [email protected]). Links Property rights The presentation "Every Zuger an Ambassador" contains links to If not mentioned otherwise all information, data and photos third-party websites upon which we have no influence. We shall not of the website are property of the Department of Economic be liable in any way for the contents of third-party websites. The Affairs of the Canton of Zug. The entire contents of the respective owner or provider shall be liable for the contents of third- presentation "Every Zuger an Ambassador" are protected party websites. Upon knowledge of any wrongdoings regarding links according to the federal law of intellectual property rights to third-party websites, they will be removed from our website and affiliated protection rights (IPR). Third-party immediately. publications are marked as such.
© Department of Economic Affairs