Lucerne responds to tax pressure with a billion-euro package
The OECD minimum taxation puts Switzerland's location policy to the test. The canton of Lucerne is particularly affected. In order to prevent the impending loss of companies, jobs and investments, the Lucerne government is planning a targeted strengthening of the economic and living environment with CHF 300 million per year from 2026. The package of measures is now out for public consultation.
International tax competition is being readjusted by the OECD minimum taxation and is hitting Lucerne hard. The previous advantage of low corporate taxes for internationally active groups will no longer apply. This could result in companies moving away, a drop in investment and a massive loss of tax revenue. Over a billion francs are at stake for the federal government, canton and municipalities – a scenario that Lucerne is not prepared to accept without taking action.
Strengthening the business location, ensuring quality of life
The cantonal government is responding with a far-reaching location promotion programme, which comprises around CHF 300 million per year. Around two thirds of this is to flow directly into measures to promote innovation, digitalisation, economic areas and a business-friendly administration. This will also create new opportunities for property developers and investors. In particular in the planning and realisation of forward-looking commercial and infrastructure projects.
The remaining third is dedicated to quality of life. The measures range from tax relief and family friendliness to the promotion of culture and digital participation, key location factors when it comes to retaining talent and attracting new workers.
Participatory and forward-looking
The programme was developed in close consultation with the business community, municipalities and social partners. The public consultation will run until 9 June 2025 via the “e-participation” tool. The final decision lies with the people. The package will be put to the vote in September 2026 and is scheduled to come into force on 1 October 2026.
Lucerne is sending a strong signal with this proposal. Location promotion is no longer an optional extra, but a strategic duty – and it requires clear, long-term investment.