Future-proof location for business and innovation

Silvia Thalmann-Gut has been the mayor of the Canton of Zug since 2023 and heads the Department of Economic Affairs, which comprises ten offices in the areas of business, education and social insurance. The canton of Zug remains an attractive location for companies and a highly qualified workforce, supported by targeted measures and a strong financial position.

Mrs Thalmann, you have been the mayor of the canton of Zug since 2023 and head the Department of Economic Affairs. It houses ten offices from the fields of business, education and social insurance and works with third-party partners from the fields of business and vocational training. How do you see the economic development of the Canton of Zug over the next five years?
Very well. The financial situation of the Canton of Zug continues to develop positively and the canton has a high level of equity. The 2025 budget anticipates an income surplus of CHF 226 million. The very good earnings situation allows the canton to maintain its attractiveness as a business location. Such surpluses consolidate its already very good position. The canton of Zug can continue to position itself as a financially sound and attractive location for companies and a highly qualified workforce.
The canton of Zug wants to maintain its position as an economically successful and attractive business location and residential canton. The political debate is ongoing. Large sums will be allocated in the 2025 budget and in the planning years 2026-2028 for contributions to supplementary childcare for pre-school and school-age children, the increase in the cantonal contribution per pupil to recognised public schools and the promotion of research into blockchain development. The increase in the canton’s share of inpatient healthcare costs will also be taken into account. The “Added value for all” package, which provides for tax relief for the people of Zug, businesses and the economy, will result in lower revenue.

These measures, which the cantonal government intends to implement specifically for the benefit of the people of Zug and the economy, are possible thanks to the high revenue surpluses in previous years and the very solid equity capital. The expected additional income from the introduction of the OECD minimum tax is to be returned in full to the population and the economy.

What is the Canton of Zug doing to remain an attractive location for companies in the future?
It is the overall package of several factors that is decisive. The basic principles are business friendliness, service-orientation and a culture of innovation.

The canton has significant clusters in various sectors and is an attractive location for established and up-and-coming local and international companies. A dense network of service providers, suppliers and private institutions support value-enhancing growth.
Economic support for local companies is a top priority. The authorities support companies in their long-term growth. To this end, they offer access to the Zug business network. The lines of communication are short; concerns are dealt with quickly and in a solution-orientated manner.

Which sectors are the focus of location promotion and how does the canton of Zug support their development?
The canton of Zug has been pursuing a good framework policy for all sectors for decades and wants to maintain its attractiveness. Various industries have formed clusters; the industry groups are broadly diversified: Wholesale incl. consumer goods and commodities trading; high-tech / deep-tech industry; life science including pharma / biotech / medtech; finance with asset management / private equity / family offices; ICT including fintech and blockchain; headquarters as well as global procurement & supply chain functions.

The focus is on the growth of the resident companies. In addition, new companies, especially value-added intensive companies, are moving here. I am delighted when companies from the second sector prosper in our canton. V-Zug, Siemens and Roche are just a few examples of very high value-added companies.

The Zug economic region is larger than the canton of Zug. Access to a talent pool of potential specialists is sometimes an important reason for choosing Zug as a business location. There is no individual company promotion policy or cluster policy. What counts is a good economic environment with attractive taxes, well-trained skilled labour, a functioning infrastructure with short administrative distances. Then there is the proximity to the ETH, university, etc. and the regional universities of applied sciences, the quality of life in terms of landscape and culture, the accessibility thanks to the location in the heart of Europe with the connection to the airport in Zurich.

How important is the tax policy of the Canton of Zug for attracting companies?
Attractive taxes are an argument in favour of choosing a location; they open the door to the shortlist. Ultimately, it is the overall package of locational advantages that makes the difference. The Canton of Zug has a long-term tax and financial policy, high net assets and an attractive tax environment. It also offers planning and legal certainty.

How does the Department of Economic Affairs support companies in the canton of Zug?
80 per cent of the energy is used for economic development. Companies should feel at home here. The team at the Business Contact Centre is very service-minded and is in constant contact with various stakeholders in order to maintain business-friendly conditions for local companies. They see themselves as partners and promote Zug as a business location, are networked and in dialogue with local companies, business associations, organisations, etc. They are committed to the concerns of Zug’s entrepreneurs; their satisfaction is the goal.

The property market in Zug is tight. What steps is the canton taking to create more living space?
Finding living space is a major issue that also concerns the Zug government. The canton of Zug has just finalised a “Housing Policy Strategy 2030” with 19 measures that will be successively implemented. The main points are: more flats, more affordable flats and more flats for the local population. One of the aims is to increase the number of vacant flats to allow more movement. The resulting measures are Simplified and more flexible building regulations, such as adding storeys, superstructures or relaxing the requirements for high-rise buildings, should enable the construction of more living space. Existing building permit processes are to be reviewed and examined for simplification, acceleration and optimisation. By strengthening and simplifying the Housing Promotion Act, non-profit property developers should be able to obtain loans more easily and subject aid for needy households should be optimised.

The Government Council is prepared to initiate the corresponding amendments to the Planning and Construction Act and the Housing Promotion Act. In principle, it wants to achieve the housing policy goals with voluntary measures. Financial incentives should lead to a larger, more readily available and affordable housing supply.

What role does the canton play in promoting sustainable construction and energy-efficient property projects?
On the one hand, the canton of Zug fortunately has investors who are taking on a pioneering role with regard to sustainable construction and energy-efficient projects. Examples include the Suurstoffi and Papieri sites and the Techcluster in Zug.

On the other hand, the cantonal energy law comes into play: when heating systems are replaced, at least 20 per cent of the heating requirement must be covered by renewable energies or energy efficiency must be increased to the same extent. In order to cushion the financial consequences for building owners, the cantonal energy promotion programme will provide generous subsidies for the replacement of heating systems and thermal insulation until 2032.

As mayor, you are also active in regional and national politics. What challenges do you see for the coming years?
The challenge is to provide childcare to supplement family life in line with demand. Other tasks include finding answers to demographic developments and dealing with the increasing numbers of asylum seekers – the people of Zug are doing a great deal to integrate; the canton of Zug promotes integration, the loss of tax attractiveness (STAF, minimum taxation) and a clarified relationship between Switzerland and the EU with regard to access to the market.

Which upcoming property projects will influence the Zug economic region?
The dynamic economic development of our canton has been and will continue to be strongly fuelled by the development of attractive sites for working and living. The focus on sustainability is particularly important here. Sites such as Suurstoffi (Rotkreuz), Papieri (Cham) and Techcluster/V-Zug (Zug) are already well-known projects with nationwide appeal. Upcoming major projects such as the LG site (Landis & Gyr) (Zug) or Unterfeld (Baar/Zug) as well as Hinterberg/Städtlerallmend (Cham/Steinhausen) will continue this sustainable development.

The canton of Zug is investing CHF 40 million in the establishment of the Institute for Blockchain Research. What do you hope to gain from this?
We believe that blockchain technology has the potential to change many areas of our lives and we want to be at the forefront of this development. With Blockchain Zug, we are launching an innovative flagship project with international appeal. This educational project will further strengthen Zug as a business location, also against the backdrop of the OECD minimum taxation introduced on 1 January 2024. This is a measure that will help to secure the competitive position of the canton of Zug as a successful residential and business location. The canton wants to bring together the areas of research, education and business and promote innovation. The aim of the initiative supported by the canton is to make Zug a leading global centre for blockchain research.

Final question: Why should companies come to Zug?
Zug has proven that it is a very attractive place to live and do business. Its success is based on a long-term development strategy. Decisive factors for choosing Zug as a business location are its business friendliness, the availability of skilled labour, decades of stability, the high quality of life and the short distances between Zug’s authorities, which work quickly and efficiently.

Redaktion: Sabine Billeter, Bild: zVg.