Zug at a Glance
Working in Zug
Zug is widely considered to be a tax haven in Switzerland– which isn’t bad for a town with a population of around 28,000. As a result of the preferable tax situation, many companies moved their headquarters to Zug to benefit from the low tax zone.
At the end of 2010, trade and services made up 73% of the labor force, with 2.2% in agriculture (Zug’s best-known agricultural export is Kirsch, alcoholic drinks distilled from cherries) and 24.8% in industry. Some of the largest private employers in Zug include Siemens Building Technologies and Johnson & Johnson.
There are also many opportunities to be found in banking and finance, in addition to technical and skilled jobs. Marketing and sales, too, is a key area of opportunity.
Job Hunting in Zug
Working in Zug can be a very positive career move, as the combination of a flourishing job market and low income tax offers many opportunities for professional growth and development. As Zug is a magnet for expats, there are many opportunities for English language tutors — you might also consider tutoring school-age students.
You can start your job search on websites such as Jobs.ch or Alpha.ch. When applying for a job, it is likely you will be asked to provide a CV and cover letter. Your CV should cover your work and education history, and any additional skills that make you suited to the role. Your cover letter should expand on your CV and explain your motivation for applying, as well as your suitability for the role.
Income Taxation in Zug
Many expatriates fear that because of its unusual tax system, working in Zug will be difficult. However, there is no reason to fear the tax system, as the low tax is one of the reasons that working in Zug is so attractive. All residents are required to pay tax on their income, and in Switzerland, you will either pay tax through your employer, or by filing a tax return every year.
If you still have income from another country, you should check if there is a double taxation agreement with Switzerland. This will ensure you don’t have to pay tax twice on any of your income.
There are three levels of tax in Switzerland: federal, cantonal and municipal. You might be pleased to learn that even the highest earners will only pay a maximum of 22% tax on their income. There is also a wealth tax — which is deductible against liabilities — and this is taxed at a progressive rate of no higher than 3%. For this reason, Zug has earned its reputation as a tax haven within a tax haven.