Switzerland’s Basel-City canton approved a referendum on 18 May 2025, introducing tax incentives, R&D grants, an innovation fund, and a new corporate tax structure starting in 2026.
Voters in Switzerland’s Basel-City canton approved a referendum on 18 May 2025, overturning the parliamentary decision of 9 January 2025 to introduce a location package aimed at boosting regional competitiveness through tax incentives.
Under the approved package, revenues from minimum taxation will finance measures to support innovation and business development. A new fund, with an annual budget ranging from CHF 150 million to CHF 500 million, will be created, allocating at least 80% to innovation and 20% to other projects. Support may be provided through Qualified Refundable Tax Credits (QRTCs) or government grants, with applications submitted electronically and reviewed by an appointed auditor.
Key incentives include grants covering personnel costs for R&D, depreciation of fixed assets such as clinical trial expenses and active ingredient production, and increased funding for activities involving patents and intellectual property rights. Funding is already available for 2025, despite the law taking effect later in the year.
Basel-City will raise its cantonal corporate income tax rate to 8.5% for profits exceeding CHF 50 million (approx. EUR 53 million), while maintaining the 6.5% rate for lower profits, effective 1 January 2026.
