Experts have raised fears of an exodus of companies from Zurich, a city long known as a banking and finance hub.
Business figures in Zurich have pointed to a new trend in Switzerland’s biggest city — companies leaving to relocate elsewhere.
A browse of Swiss media in recent months certainly supports the idea.
Firstly, Vontobel Bank is leaving Zurich, followed by Cembra Money Bank.
Medical technology group Zimmer Biomet is cutting hundreds of jobs in Winterthur, and jobs are also being lost at Burckhardt Compression too.
Each business or company has its own reasons for relocation, but some in Zurich fear the city is losing its appeal as a business location.
For SRF business editor Charlotte Jacquemart, tax rates seemingly play a role here.
She points out that in Baar, where Vontobel is relocating and where Zimmer Biomet established its European base back in 2020, the corporation tax rate is around 12 percent.
In Zurich, for context, it’s 19.5 percent — one of the highest rates in the country.
In Baden, where Cembra is relocating, the rate is around 15 percent.
READ MORE: Why does the canton of Zug have Switzerland’s lowest tax rates?
Drawn to lower-tax areas, companies can save tens of millions simply by relocating. On top of that, other costs are often lower too, such as rent or infrastructure costs.
This means, Jacquemart writes, that the city is losing tax revenue whilst infrastructure costs remain high.
“The greatest danger lies in the fact that other firms could follow suit. They might say to themselves: if large companies are relocating their headquarters to cantons surrounding Zurich, we’ll look into it too. This could lead to an exodus from Zurich’s cities becoming a trend,” she writes.
However, tax rates are not the only reason behind businesses turning their back on Zurich. Issues such as traffic problems, sky-high rents, a lack of office space or affordable housing for staff also play a role.
