Tax Comparisons: Herisau vs. Zug – Where Is It More Worthwhile to Have a Domicile?
2025-06-17 17:18
Why Compare Zug and Herisau?
Switzerland has long held a reputation for offering companies a robust and efficient tax system. But within the country, cantonal differences can have a significant impact on your financial strategy. Zug, a global tax haven, and Herisau, a rising star for cost-conscious entrepreneurs, are both attractive but suit different needs. So, where does it make more sense to establish your company domicile?
Tax Rate Breakdown
Zug – The Benchmark for Low Corporate Taxes
Zug is renowned for its favorable corporate tax regime. The combined federal, cantonal, and municipal tax burden can be as low as 11.8%. This makes it extremely appealing for multinationals, fintech firms, and holding companies. The canton also provides:
Minimal capital taxes
Streamlined tax rulings
High levels of confidentiality
Stable regulatory environment
Herisau – Competitively Priced for Small to Mid-Size Enterprises
Herisau, as the administrative capital of the canton of Appenzell Ausserrhoden, offers slightly higher tax rates—between 13.5% and 14.5%—but compensates through significantly reduced costs for rent, staffing, and compliance. It also appeals to:
Local businesses
Cost-sensitive entrepreneurs
Lean, digitally operated firms
Additional Factors to Consider
In addition to these elements, access to a skilled and multilingual workforce, proximity to Zurich’s airport, and world-class infrastructure further enhance Zug’s appeal. However, for businesses that do not require such proximity, Herisau can deliver significant savings without sacrificing compliance.
Which Type of Business Benefits Where?
Zug is ideal for companies that operate internationally or need to maintain a high-status business image. This includes:
Blockchain & Crypto firms
Investment companies
Global trading enterprises
IP management and royalty-based models
Herisau, meanwhile, is better suited to:
Local service providers
SMEs and freelancers
Remote-first or hybrid digital businesses
Budget-sensitive startups
Legal and Strategic Considerations
Choosing a canton isn’t only about taxes. Your company must comply with Swiss regulations, including appointing a Swiss resident director and establishing a legal domicile. We recommend reviewing the official guidance on board responsibilities. Additional federal resources are available at the Swiss SME Portal.
At DeinDomizil, we offer comprehensive services including:
Legal Swiss representation
Full business registration and compliance
Liaison with banks and Swiss authorities
Administrative processing of payments and correspondence
If your company is preparing for international expansion and needs a globally recognized address, Zug offers unmatched advantages. However, for companies that prioritize efficiency, operational savings, and value, Herisau represents an excellent and compliant option.
Get Expert Help Today
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