FeusisbergTax Haven Gentrification: A Claim for Territorial EquityViviane Hug and Tabea Meienhofer

Feusisberg is a municipality with great areas of tension. The tractor drives next to the Ferrari—both in red. The global logistics company has its headquarters right across the street from the one-man/woman business. The villa is around the corner from the apartment block and the national football team trains on the same pitch as the village club. The luxury hotel is only a few minutes’ drive from the village pub—both have their regulars. Welcome to the villages of Schindellegi and Feusisberg.

In the history of Feusisberg, on the one hand, the attractive and strategic location, the good train and car connections and thus the proximity to Zurich contribute to the process of becoming a tax haven. On the other hand, one of the largest taxpayers in Canton Schwyz today, the Kühne+Nagel company, also played an important role. Finally, the interplay between cantonal and local tax policy is also crucial.

Switzerland is the most fiscally federal state with a very complex tax system. Almost 40 % of all tax revenues are collected at the regional level. The cantons and municipalities have an exceptionally high degree of autonomy to determine the tax rate themselves. Therefore, moving across the cantonal or communal border can mean a lower bill at the end of the year.

It sounds like a dream to live in the commune of Feusisberg benefitting from local investments by its wealthy residents: children may enjoy a public education in small classes in a newly built school building, all parking spaces are free, and local clubs are financially secured. However, these benefits are only available to those who can afford a home in one of the two villages. A move to low-tax Feusisberg is not affordable for people with medium or low income, and existing communities with low or medium income are potentially displaced. This spatial effect of gentrification is familiar from cities; in the case of Schindellegi and Feusisberg we might call it “tax haven gentrification.”

Broadening the perspective from Feusisberg to the cantons, to Switzerland and worldwide, the same processes also take place on a very large scale, which points to a systemic origin. Switzerland is in international comparison again “the Feusisberg”, a cluster of the rich. The size of these processes can be paralysing, however, there are also opportunities on a smaller scale. The municipality has the luxury of having de facto enough money to fulfil every wish of the population. Instead of of creating a paradise for the superrich, one could create a paradise for all.