News & Informations
News & Informations
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Zug Approves New Sustainability and R&D Incentives
Zug Approves New Sustainability and R&D Incentives
A Strategic Opportunity for Businesses
The canton of Zug has formally approved a new incentive regime designed to support sustainability initiatives and research and development projects. This development reinforces Zug’s position as a leading business jurisdiction in Switzerland, particularly in the context of the evolving international tax landscape, including the effects of the global minimum tax (Pillar II).
Key elements of the new incentive framework
Companies may apply for direct financial support for qualifying sustainability and R&D projects, instead of traditional tax reductions.
Up to CHF 150 million per year will be made available between 2026 and 2028.
Eligible projects include emission-reduction measures, energy-efficient technologies, industrial innovation and scientifically oriented R&D activities.
The system strengthens Zug’s economic competitiveness while remaining fully aligned with international tax standards.
Why this matters
For both Swiss-based and international companies, these incentives represent a significant opportunity to finance innovation, expand R&D capabilities and accelerate sustainability efforts.
The initiative also confirms Switzerland’s ongoing commitment to offering a stable, transparent and legally secure environment for business activity and long-term investment.
How PM Corporate Services can assist
PM Corporate Services supports companies and investors by:
Assessing eligibility for Zug’s new sustainability and R&D incentives
Preparing and submitting applications to secure financial support
Establishing or relocating a corporate seat in the canton of Zug, including full domiciliation services
Ensuring proper structuring, governance and compliance with Swiss regulatory requirements
If your organisation is considering an expansion into Switzerland, planning an R&D or sustainability project, or evaluating the benefits of relocating to Zug, our team is available to provide tailored guidance and assistance.
For further information or a confidential discussion, please contact us.
Is a Corporate Domicile in Zug Truly Acceptable?
Is a Corporate Domicile in Zug Truly Acceptable?
A Practical Guide for Entrepreneurs and International Businesses
A Practical Guide for Entrepreneurs and International Businesses
In recent years, Zug has continued to attract entrepreneurs, high-growth companies, and international structures seeking a competitive, stable and business-oriented environment. Yet, many business owners remain unsure:
Is a simple domiciliation in Zug really acceptable in the eyes of the Swiss tax authorities?
Does the company need to have employees on site?
Is a fiduciary address enough?
Recent case law and administrative practice give clear answers — and the news is positive for businesses.
At PM Corporate Services (Switzerland) Sàrl, we support clients daily in establishing compliant and defensible corporate domiciles in Zug. Below, we summarise what matters, what does not matter, and how companies can safely operate with a Zug address.
1. Understanding Swiss Corporate Domicile Rules: Two Concepts, One Reality
1. Understanding Swiss Corporate Domicile Rules: Two Concepts, One Reality
Under Swiss law, a company’s tax domicile is determined by two potential connecting factors :
1.1. The statutory seat
This is the address registered in the commercial register.
It reflects the company’s legal home, but it is not decisive on its own.
1.2. The place of effective management ("administration effective")
This is the real centre of the company's activities:
Where strategic and operational decisions are taken
Where day-to-day business is carried out
Where management is reachable
Where contracts are negotiated, signed or executed
Swiss courts regularly confirm that the place of effective management prevails over the formal seat whenever the two differ.
2. Good News: Zug Domiciliation Is Acceptable
in Many Cases
2. Good News: Zug Domiciliation Is Acceptable
in Many Cases
Many entrepreneurs assume that establishing a corporate seat in Zug automatically triggers suspicion. Case law shows the opposite.
Federal Supreme Court decisions confirm that:
✔ A Zug domiciliation is valid even if directors live elsewhere,
✔ Frequent travel does not invalidate the domicile,
✔ A small office or shared space may be sufficient,
✔ What matters is the “centre of gravity” of management.
In several cases, the Court rejected attempts by fiscal authorities in other cantons to claim jurisdiction simply because a director was living or travelling outside Zug.
If the company can demonstrate a credible presence in Zug and some degree of management activity there, the domicile stands.
3. What Authorities Actually Look At (The REAL Criteria)
3. What Authorities Actually Look At (The REAL Criteria)
Based on recent jurisprudence, tax administrations focus on substance — but not necessarily in the form people expect.
Relevant criteria include:
Is the company reachable in Zug?
Is mail handled there?
Is administrative support available locally (secretariat, documents, banker calls, etc.)?
Are some management or operational decisions made from Zug?
Are corporate records maintained or accessible from Zug?
Do board members occasionally meet or work in Zug?
Is there a physical office, even modest?
Not decisive criteria:
The director’s home address
Holding board meetings elsewhere
A small office footprint
Remote working patterns (common post-COVID)
Occasional travel
This flexibility makes Zug highly suitable for international business leaders who operate across countries but wish to maintain a stable, compliant Swiss base.
4. When a Zug Domicile Is Particularly Strong
4. When a Zug Domicile Is Particularly Strong
From experience and case law, Zug is especially appropriate in the following situations:
International entrepreneurs with mobile business activities
Digital business, consulting, trading, investment and management structures often have geographically dispersed operations. Zug offers stability and efficiency.
Companies with lean but real Swiss presence
A modest office plus structured corporate administration is often enough.
Groups needing a neutral, reputable and predictable jurisdiction
Zug offers political stability, tax clarity, and business continuity.
Startups and scale-ups seeking a long-term Swiss base
The canton provides corporate-friendly policies and excellent infrastructure.
5. How PM Corporate Services Strengthens Your Zug Presence
5. How PM Corporate Services Strengthens Your Zug Presence
We support clients in building robust, defensible, and fully compliant corporate domiciles in Zug.
Our services include:
✔️ Corporate domiciliation with complete administrative handling
✔️ Office presence (from business address to physical space)
✔️ Director and board support
✔️ Corporate administration (minutes, resolutions, filings)
✔️ Coordination with tax advisors, auditors and banks
✔️ Documentation of management presence for audit or tax defence
With proper structure and documentation, companies avoid the classic risks: requalification, dual taxation, and administrative challenges with banks or tax authorities.
Conclusion: Yes — Zug Is Very Often Acceptable
The message from Swiss authorities is clear: A Zug corporate domicile is entirely acceptable — if substance is coherent and management is traceable.
With the right setup and ongoing support, Zug offers one of the most reputable and advantageous business environments in Europe.
PM Corporate Services ensures your structure is not only compliant,
but durable, efficient, and ready for growth.
Zuger Zeintung | November 2025
Zug faces proliferation of shell companies
Zug faces proliferation of shell companies
One in three companies in the canton is now a “letterbox company” according to the commercial register.
One in three companies in the canton is now a “letterbox company” according to the commercial register.
A recent article in the Zuger Zeitung highlights the proliferation of shell companies in the canton of Zug. Analysis of the commercial register reveals that their number has increased significantly in recent years, to the point where they now account for one in three companies. Although the creation of such entities is legal, their use is raising growing concerns, particularly due to the absence of physical offices and their concentration at a few shared addresses. Four addresses, including 26 Gotthardstrasse, which alone is home to more than 1,200 companies, have become emblematic of this phenomenon.
In this context, PM Corporate Services offers a credible and compliant alternative for companies wishing to establish a reliable legal presence in Switzerland.
Financial Times | July 2025
Liechtenstein hit by Russian “zombie trust” crisis
Liechtenstein hit by Russian “zombie trust” crisis
Liechtenstein on the brink of its biggest crisis since 2008 due to hundreds of Russian-linked trusts
Liechtenstein on the brink of its biggest crisis since 2008 due to hundreds of Russian-linked trusts
Liechtenstein, a small Alpine principality renowned for its discretion and expertise in wealth management, is facing a potential crisis: the apocalypse of “zombie trusts.” These dormant trusts, often forgotten or poorly managed, represent a real legal and financial headache, threatening the country's reputation and potentially impacting its lucrative financial sector.
This article explores the intricacies of this emerging issue and its implications for high net worth individuals (HNWIs), international tax compliance, and the future of the wealth management industry in Liechtenstein.
Keywords: Liechtenstein trusts, zombie trusts, wealth management, offshore trusts, tax compliance, HNWIs, international taxation, legal issues, financial regulation, estate planning, succession planning.
What are zombie trusts?
What are zombie trusts?
In Liechtenstein and other offshore jurisdictions, zombie trusts are essentially dormant or inactive trusts that continue to exist legally but lack active management, clearly identified beneficiaries, and up-to-date documentation. They often originate from:
Outdated estate planning: Trusts established decades ago may lack up-to-date beneficiary information, leading to a lack of clarity regarding ownership and management.
Lack of communication: A breakdown in communication between trustees, beneficiaries, and the settlor's heirs can lead to neglect and inaction.
Poor administration: Inefficient or negligent management by trustees contributes significantly to the creation and persistence of zombie trusts.
Unclear or ambiguous trust deeds: Vague or poorly drafted trust documents can create uncertainty and hinder effective management.
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