Which regions are the most attractive?


Which regions are the most attractive?
The annual Credit Suisse analysis of the quality of location in Switzerland's cantons and regions shows that one canton is reaffirming its leading position, the competition is easing, and the other is catching up.

According to the Credit Suisse indicator*, Zug is still the most attractive canton from the point of view of entrepreneurs. This position has been strengthened by the temporary reduction of the annual coefficient of cantonal taxes from 82% to 80% for the fiscal period 2021-2023. Tax policy is the main reason for the changes in this ranking. The central Swiss canton is followed by Basel-Stadt (2nd), which also has an advantageous combination of business factors.

The podium is completed by Zurich (3rd). Geneva (4th), the leading canton in French-speaking Switzerland, has risen 11 places in eight years. The cantons of Aargau (5th), Nidwalden (6th), Schwyz (7th), Lucerne (8th), Thurgau (9th), Schaffhausen (10th), Basel-Landschaft (11th) and Vaud (12th) complete the top half of the ranking. They all have a positive coefficient. However, it is important to note that the inter-cantonal disparities and the relative advantage of low corporate taxes have diminished.

In the second half of the ranking, Appenzell Ausserrhoden (13th), Obwalden (14th), Solothurn (15th), St. Gallen (16th) and Appenzell Innerrhoden (17th) are in the national average. This is not the case for Fribourg (18th), Uri (19th), Neuchâtel (20th), Glarus (21st) and Berne (22nd), which, together with Obwalden and Lucerne, has become less attractive. Ticino (23rd), Graubünden (24th), Jura (25th) and Valais (26th) close the gap. Importantly, the reduction in corporate tax applied at the beginning of 2020 means that Valais has almost completely caught up with the canton of Jura.

Finally, this Credit Suisse study shows a strong disparity between the different regions of the same canton. For example, economic centres such as Zurich, Zug, Basel, Baden, and Geneva and their conurbations are among the most attractive regions for companies. This is also the case for the Sion region, Nidwalden/Engelberg, Lugano and Mendrisio. In contrast, the regions of the Jura and Alpine arcs remain less attractive for companies. This is due to their topography and their distance from urban centres.

Discover the Credit Suisse press release: HERE

*The Annual Location Quality Indicator (ALQI) was developed to measure the attractiveness of Swiss cantons and regions from the perspective of entrepreneurs. It is based on 7 quantitative sub-indicators: tax burden for individuals and companies, availability of highly qualified and specialized labor, accessibility of the population, workers and airports.