Luxembourg or Switzerland (Zug): where should your business be based?
Switzerland (Zug) ranks higher in the index, =07 against 23. Which suits you depends on where the owners live, what the company is for and how it will be run.
Pillar by pillar
Doing business, side by side
Tax
Corporate income tax is 16% on income above €200,000 and 14% up to €175,000. With the 7% solidarity surcharge and Luxembourg City's 6.75% municipal business tax, the combined rate is 23.87%. VAT is 17%.
The combined 2026 corporate tax rate for Zug is 11.71%. Cantonal rates range from 11.66% in Lucerne to 20.54% in Bern, and VAT is charged at 8.1%.
Set-up
An SARL is formed before a notary, who files the deed with the Trade and Companies Register. The registry fee is €105.91 plus VAT, and publication in the RESA follows on acceptance, normally the day of filing.
Zug registrations averaged under one working day in the first half of 2026, after the notarised deed. The register fee is CHF 420, plus the notary.
On the ground
Every company needs a registered office in Luxembourg. A business permit for commercial, craft and some professional activities needs a physical establishment and a manager present day to day.
At least one authorised representative must be domiciled in Switzerland. A GmbH needs CHF 20,000 of capital, an AG CHF 100,000, and there is no annual fee.
Ownership
The beneficial ownership register closed to the public after the EU Court of Justice ruling of 22 November 2022. Authorities and obliged professionals have access, and journalists, AML organisations and likely counterparties can apply.
The transparency register is not public. It is open to authorities and to financial intermediaries for their anti-money laundering duties, and began operating on 1 October 2026.
Residence
A non-EU owner who will run the business in person can apply for a self-employed residence permit, with a business plan, proof of resources and the business permit agreement in principle. A reply is due within 3 months.
Permits for non-EU nationals are discretionary and subject to quotas. EU and EFTA nationals can obtain a permit for genuine self-employment.
Living and working
Currency
Euro.
Swiss franc.
Time zone
UTC+1, or UTC+2 in summer.
UTC+1, or UTC+2 in summer.
Personal tax
Progressive rates rise to 42% on income above €234,870. With the 9% solidarity surcharge for higher earners, the top marginal rate is 45.78%.
Federal tax reaches 11.5% from CHF 794,000 (single, 2026); the Zug base tariff tops out at 8%. Wealth and inheritance taxes apply.
Flights
Luxembourg Airport at Findel offers more than 100 non-stop destinations.
Zurich Airport had direct flights to 213 cities in 75 countries in 2025, with just under 32.6 million passengers.
Luxembourg vs Switzerland (Zug): common questions
Luxembourg: Corporate income tax is 16% on income above €200,000 and 14% up to €175,000. With the 7% solidarity surcharge and Luxembourg City's 6.75% municipal business tax, the combined rate is 23.87%. VAT is 17%. Switzerland (Zug): The combined 2026 corporate tax rate for Zug is 11.71%. Cantonal rates range from 11.66% in Lucerne to 20.54% in Bern, and VAT is charged at 8.1%.
Luxembourg: An SARL is formed before a notary, who files the deed with the Trade and Companies Register. The registry fee is €105.91 plus VAT, and publication in the RESA follows on acceptance, normally the day of filing. Switzerland (Zug): Zug registrations averaged under one working day in the first half of 2026, after the notarised deed. The register fee is CHF 420, plus the notary.
Luxembourg: Every company needs a registered office in Luxembourg. A business permit for commercial, craft and some professional activities needs a physical establishment and a manager present day to day. Switzerland (Zug): At least one authorised representative must be domiciled in Switzerland. A GmbH needs CHF 20,000 of capital, an AG CHF 100,000, and there is no annual fee.
Luxembourg: The beneficial ownership register closed to the public after the EU Court of Justice ruling of 22 November 2022. Authorities and obliged professionals have access, and journalists, AML organisations and likely counterparties can apply. Switzerland (Zug): The transparency register is not public. It is open to authorities and to financial intermediaries for their anti-money laundering duties, and began operating on 1 October 2026.
Luxembourg: A non-EU owner who will run the business in person can apply for a self-employed residence permit, with a business plan, proof of resources and the business permit agreement in principle. A reply is due within 3 months. Switzerland (Zug): Permits for non-EU nationals are discretionary and subject to quotas. EU and EFTA nationals can obtain a permit for genuine self-employment.
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