Politicians are worried Zug cuts taxes and rents go through the roof
The canton of Zug wants to ease the burden on its population with tax cuts and reduced health insurance premiums. Politicians fear that the financial incentives will make affordable housing even scarcer.
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- The population of the canton of Zug can look forward to lower taxes and lower health insurance premiums.
- However, the cantonal government is exacerbating a major problem with the tax cuts, politicians fear: rents will continue to rise.
- The financial incentives are likely to attract more wealthy people to the canton, making it difficult for locals to find affordable housing.
The canton of Zug is making life easier financially for its population. In 2026 and 2027, it will cover the costs of inpatient hospital treatment. As a result, health insurance premiums will fall by an average of 18% (around CHF 700 per year).
Last but not least, taxes will also be reduced in Zug. The cantonal tax rate will fall by four percent between 2026 and 2029. The government also wants to allow higher tax deductions. The measures are made possible by the tax surplus of CHF 461.3 million from last year.
However, the financial relief comes at a price: the canton will become even more attractive for the wealthy - which could become a problem on the housing market. The incentives for wealthy newcomers are increasing demand - and driving up prices.
"Middle-class families can hardly find an apartment"
"The planned tax cuts in the canton of Zug will lead to an even greater fight against displacement", warns Michael Töngi, National Councillor for the Greens, on Nau.ch. The housing situation is already tense. In Zug city center, a 3.5-room apartment can cost almost 6,000 francs per month.
Tonga fears that it will become more difficult to rent an affordable apartment, especially for people on low and medium incomes. "Buying your own home is even more illusory."
SVP National Councillor Thomas Aeschi sees the same problem: "Adult children from middle-class families can hardly find an apartment if they want to move out." The prices are now simply too high for many locals.
