Gabriela Güntherodt

Gabriela Güntherodt

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Basel-Stadt top for locational quality


Basel-Stadt top for locational quality

The canton of Basel-Stadt has jumped ahead of the canton of Zug to top Credit Suisse’s Locational Quality Indicator. The reduction in corporate tax rates with retroactive effect is among the reasons for the canton’s rise.

Credit Suisse began analyzing locational quality in 1997. Since then, the canton of Zug has topped the ranking. Now, the canton of Basel-Stadt has ascended to the top spot. “Thanks to a significant cut in its rate of corporate profit tax to 13.04% (with retroactive effect from the start of 2019), Basel-Stadt has surged to the top of the rankings from fourth place and now boasts the most favorable combination of appeal factors, closely followed by Zug and Zurich,” writes Credit Suisse in a statement. The canton of Vaud soared from 17th to 8th place, also thanks to a significant reduction in corporation taxes.

The tax burden on private individuals and legal entities is one of three factors used by Credit Suisse to analyze locational quality. For private individuals, Basel-Stadt’s tax burden is average for Switzerland, though for legal entities it is much more favorable.

The second factor is the availability of specialized labor. Here too, Basel-Stadt is average in Switzerland, while for highly qualified personnel, it is above average. The third factor is accessibility. For both population and employees, Basel-Stadt is significantly better than the Swiss average. In terms of airport accessibility, it is above the Swiss average.    

In its latest indicator, Credit Suisse also published a forecast for locational quality in 2025. It expects Zug to reclaim the top spot, followed by Basel-Stadt and Zurich. This is attributed to Zug’s “planned corporate profit tax reduction to around 12 per cent”.  


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