Benefit from low taxes in Lucerne

Take advantage of the numerous cost benefits in the canton of Lucerne. The tax burden for companies is low and incomes are taxed moderately. The city of Lucerne offers lower location costs than the cities of Basel, Bern, Geneva, Lausanne Zurich and Zug. Low corporate taxes are decisive for the choice of location.

Corporate taxes

Compared with other countries, Switzerland has always impressed with its low tax burden for companies. In the canton of Lucerne, they enjoy one of the lowest taxes in Switzerland. 5 of the 10 most tax-favorable Swiss locations are in the canton of Lucerne. The most important taxes for legal entities are the profit tax and the capital tax.

Profit tax

The effective tax burden for corporate profits varies in the canton of Lucerne depending on the municipality. Meggen is the most tax-efficient location.

Capital tax

The simple capital tax is 0.5‰, which is multiplied by the tax rate of the municipality of domicile (City of Lucerne 1.65‰). Capital-intensive holdings benefit from the lowest capital tax in Switzerland at 0.01‰ (fixed rate). This lower rate of 0.01‰ is applied to qualifying participations, intangible assets, disclosed hidden reserves as well as group receivables. The holding profit is tax-exempt at the cantonal level.

Income taxes

Lucerne is a popular residential location for entrepreneurs. Income is taxed moderately. When choosing a place to live, the total cost of ownership plays an important role. It speaks in favor of Lucerne.

Withholding tax

Foreigners who work in Switzerland on a salaried basis and do not yet hold a C settlement permit are liable to withholding tax. The withholding tax is deducted directly by the employer.

Lump sum Taxation

Individuals who take up residence in Switzerland for tax purposes for the first time or after a ten-year absence from the country may pay tax at cost if they are not gainfully employed in Switzerland.

Other taxes

The canton of Lucerne does not have a gift tax or a property tax.

Income tax burden in %

How high are the taxes in the canton of Lucerne? Income taxes are primarily based on the amount of income. In addition, assets, marital status, number of children, religious denomination and place of residence also play an important role.

Comparisons by place of residence, income and marital status
(incl. federal tax, without church tax; source: Tax office canton Lucerne / 2023)