Attractive tax framework

Two of the most important reasons firms find the Basel Area a friendly environment are taxes and business-oriented authorities. That may seem counter-intuitive, but a comparatively low tax rate, along with the recent tax reform that reduced the corporate tax rate significantly mean businesses located here thrive.

Ease of doing business

Federal and regional governments strive to create excellent framework conditions, are accessible for companies and support innovative business models. This makes the country attractive for startups, SMEs and large corporations alike.

But there are even more interesting incentives for starting a business in Switzerland.

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Attractive tax policies

Apart from a flat corporate income tax rate on a federal level, the cantons can choose their own tax rates. This leads to healthy tax competition among cantons, each striving to attract businesses.

In its most recent tax reform, Swiss cantons introduced additional incentives like tax holidays, a patent box regime, a research and development (R&D) super-deduction and a notional interest deduction to maintain appealing tax rates below 10% for businesses.

But it’s not just monetary benefits. The Swiss tax system is known for its clarity and efficiency, with streamlined processes and prompt decision-making by tax authorities.

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Liberal labor laws

Employee and employer can both terminate their working relationship in compliance with the notice period (normally up to 3 months) without any special reason. This flexibility allows you to hire your workforce as needed.

Local authorities enable companies to hire highly qualified experts and executives from abroad. It’s in Switzerland’s interest to attract top talent to contribute to the Swiss economy, no matter where it comes from.


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High-performance infrastructure

People visiting Switzerland often get a smile on their face when they learn that a three-minute train delay is considered exceptional for Switzerland or that our tap water is better than most other countries’ bottled water. Switzerland is one of the cleanest countries in the world, with a modern and reliable public infrastructure you find almost nowhere else.

Very competitive corporate tax rates

The Basel Area offers companies:

  • Tax burden for corporate income ranging from 13%-15%, depending on the location
  • Additional deductions for R&D activities are applicable, which can lead to an effective corporate income tax rate of approximately 11%

In addition, Basel Area cantons can offer tax relief for up to 10 years to businesses that meet certain conditions.

Other financial incentives

Businesses moving to the Basel Area can also benefit from incentives depending on where they choose to locate. If you collaborate with a university on an R&D project, you can apply for special funding. Additional incentives are offered on a regional basis. In Jura, businesses will find a number of attractive financial incentives for example, and in Basel-Stadt, rental relief is available to certain new companies.

Basel Area provides attractive tax rates that help businesses here succeed.

Tax and financial incentives

Switzerland’s federal system means the Basel Area cantons are able to set tax rates that are favorable for business. The beneficiaries in the Basel Area are companies active in innovative industries, as well as companies investing substantially in research, development and production. Incentives include:

  • The canton of Basel-Stadt offers a rental expense relief program for newly established companies
  • The canton of Basel-Landschaft allows provisions for scientific or technical research and development in an amount of up to 20% of the taxable profit per year.
  • The canton of Jura offers a special status for New Innovative Companies (NEI) who granted a tax exemption at the cantonal level and a tax privilege for investors established in the canton of Jura. Canton Jura offers also the possibility of a tax exemption at the federal level.

Tax holiday

The Basel Area cantons can offer companies tax relief for up to ten years provided the following conditions are met:

  • Establishment of a new company or a fundamental change in the business activity
  • Legal entity
  • Business activities serve the economic interests of the canton
  • Substantial job creation
  • Substantial investments
  • Innovative business activities

Find out what the Basel Area has to offer.

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