Public Vote on 27 September: Canton of Lucerne Aims to Expand Its Business Location Support
Lucerne - The Canton of Lucerne is planning a broad package of measures in response to the international tax reform, aiming to secure the region's long-term competitiveness as a business location. On 27 September 2026, Lucerne voters will decide on the legal amendment required to implement it.
The OECD global minimum tax is reshaping international location competition. Large international companies now pay at least 15 percent in profit tax, meaning they no longer benefit from Lucerne's traditionally low tax rate. This removes much of the canton's previous competitive edge. According to the canton, should affected companies relocate, more than CHF 1.1 billion in tax revenue for the federal government, canton and municipalities is at stake – along with jobs and future investment.
A Package of Measures for Businesses and Residents
In response, the canton wants to expand its business location support through a broad package of measures. These are based on an analysis of key location factors and address two areas:
For businesses, the focus is on innovation funding and improved conditions in areas such as tax burden, digitalisation, international schools, the availability of commercial and residential space, and a more customer-oriented administration.
For residents, the package includes improvements in tax burden, work-family balance, culture and digitalisation. A new focus programme is intended to ensure coordinated planning and implementation of all measures.
Regierungsrat Fabian Peter, head of the Department of Construction, Environment and Economic Affairs, summed up the direction: "We are improving the framework conditions for all Lucerne businesses, remaining attractive to international companies, and raising the quality of life for the people of Lucerne."
CHF 250 million is earmarked for implementation in 2026. From 2027 onward, the cantonal parliament will set the funding annually.
Cantonal Parliament Approval Was Clear but Not Unanimous
The cantonal parliament passed the proposal by 86 votes to 27. The Mitte, SVP, FDP and GLP parliamentary groups voted unanimously in favour of the legal amendment. The SP voted unanimously against it, while the Greens mostly abstained. Opponents argue that the proposal is too heavily focused on large companies, to the disadvantage of residents and small and medium-sized enterprises.
What Voters Will Decide on 27 September
Legal groundwork for some of the measures is already in place, while other elements – such as the e-government law – are still being developed. However, an amendment to the law on business location support and regional policy is required for three specific elements: the business location support focus programme, the Lucerne innovation contribution, and the development of commercial land. Voters will decide on this legal amendment on 27 September 2026. If approved, it will take effect on 1 October 2026.
The proposal is also linked to cantonal financial support for Steeltec AG: this support can only be granted if the legal amendment takes effect, which in turn would allow the company to access federal bridging assistance.
Relevance for the Business Location of Lucerne
For the business location of Lucerne, the proposal illustrates how the canton intends to respond to the changing international tax landscape. Regardless of the outcome of the vote, factors such as innovation funding, the availability of commercial space and digital administrative processes remain central location factors for companies looking to establish or grow in Lucerne.
Further information and voting documents are available at www.standortfoerderung.lu.ch.
