Switzerland stands at the forefront of global commodities trading, renowned for its stability, expertise and strategic location. According to official statistics from the Swiss Federal Office of Statistics, roughly 1,000 commodities trading firms (core sector) employ more than 10,000 people nationwide, with a strong geographic concentration in the cantons of Zug, Geneva and Ticino. In 2024, these three regions alone accounted for over 85% of the total CHF 19.2 billion in added value generated by Swiss commodity trading activities. While Zug and Geneva are particularly noted for their density of commodities firms and cross-border talent, Ticino primarily specialises in precious metals trading.

Swiss commodity trading hubs are often compared to other global centres such as London, Singapore and Dubai. What sets Switzerland apart is its favourable regulatory environment, efficient infrastructure and strong connectivity to European and international markets, facilitating trading between the Americas and Asia. In addition, Switzerland benefits from a high concentration of international firms, robust talent pools and access to both academic and financial resources, supporting continued innovation and growth in commodities markets.

An important, and sometimes underestimated, factor contributing to Switzerland’s attractiveness for commodity traders is taxation. Under Swiss domestic tax law, the cantons have the autonomy to set their own tax rates, resulting in competitive corporate income tax rates ranging from 11.66% to 20.53% (2026 top effective rates). In the key commodity trading hubs of Zug, Geneva and Ticino, the effective tax burden is typically around 15%, assuming the trading company’s parent group falls within the scope of Pillar 2 (GloBE rules). Otherwise, effective domestic tax rates can be as low as 11.74%.

Furthermore, accessible tax authorities and the well-established Swiss advance tax ruling system, which provides certainty across a broad range of tax matters, including transfer pricing, create additional incentives for businesses active in commodity trading.

Loyens & Loeff advises commodity trading companies on all Swiss and international tax, legal and regulatory aspects, from initial structuring and set-up to ongoing compliance. Our tax services include the design of tax-efficient operating models, transfer pricing advice and obtaining advance tax rulings with Swiss tax authorities to ensure legal certainty. We also provide support with corporate tax, VAT, withholding tax and tax audits, and assist in business establishment, including canton selection, incorporation and access to cantonal incentive schemes.

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This article forms part of our series on Switzerland as a global trading hub, exploring how legal and tax frameworks shape the country’s competitive position in international markets.