The annual study on locational quality (SQI) published by Credit Suisse measures the attractiveness of Swiss cantons to businesses. Once again at the top of the ranking is the canton of Zug, followed by Zurich. Since 2016, when it overtook the canton of Basel-Stadt, the canton of Aargau has been in third place – thanks in particular to its greater tax appeal.
The cantons of Nidwalden, Schwyz and Lucerne also boast “well above average” results, according to Credit Suisse. A series of suburban cantons, plus the city canton of Geneva, make up the broad midfield, while the peripheral cantons of Jura and Valais have the lowest locational quality, according to the study.
With the fundamental reform of corporate taxation and the opening of the Ceneri Base Tunnel in 2020, two components of locational quality are set to change significantly. Credit Suisse has already produced initial forecasts for 2025, with the canton of Zug still coming out top in the hypothesis. The planned reduction in the corporate profit tax rate to 13.04 per cent pushes Basel-Stadt up, with Zurich moving into third place given its planned corporate profit tax rate of 18.19 per cent. Geneva, Basel-Land and Solothurn are all expected to advance.
Credit Suisse concludes that the planned reductions in corporate taxes generally increase locational quality, saying that Switzerland is well placed in global locational rankings. Besides low corporate tax rates, Swiss locations offer a high degree of political stability, high-quality infrastructure and educational institutions, and peaceful industrial relations, as well as sound public finances.
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