With a population of 43,223, the central Swiss canton of Nidwalden is one of the countries tiniest.
But a new set of reforms are set to put it on the map – at least for corporate clients.
The adoption of a set of tax reforms – partially motivated by the coronavirus crisis – will result in Nidwalden adopting a corporate tax rate of 9.8 percent.
Currently, Hong Kong has the lowest corporate tax rate in the world but will be undercut by Nidwalden if the changes take effect.
As reported in the NZZ however, other countries may follow suit – meaning there’s no guarantee that Nidwalden will stay number one for long.
A number of other Swiss cantons have also announced reductions in order to attract corporate clients.
In addition to Nidwalden, Uri and Schaffhausen have also slashed their tax rates, while Bern now comparatively has one of the higher rates in Switzerland.
The changes are not immediate however and are expected to take effect in 2025.