Germany vs Switzerland vs Austria: Choosing a Company Base

When founders weigh up Germany vs Switzerland vs Austria for a company, they are choosing between the three German-speaking economies that make up the DACH region. All three are stable, well-regulated places to base a limited company, yet they differ sharply on the things that actually decide where you incorporate: minimum capital, corporate tax, VAT, access to the EU single market, and how open they are to foreign and non-resident owners. This guide compares the three side by side so you can make an informed choice.

To be clear from the outset, this is a comparison of company formation and acquisition, not a comparison of where to travel, study, or live. If you are deciding which DACH country to base a business in, you are in the right place. This page is general information, not tax, legal, or immigration advice.

DACH at a glance

The fastest way to orient yourself is a single comparison. The table below sets out the headline differences between forming a limited company in each country. Each figure is explained, and sourced, in the sections that follow.

All three countries use a private limited company as the default vehicle. In Germany and Switzerland it is the GmbH (Gesellschaft mit beschränkter Haftung); in Austria the same form is written Ges.m.b.H. Switzerland and Liechtenstein also commonly use the AG (stock corporation) for larger setups. The labels look alike, but each is governed by its own national law, with its own capital and tax rules.

Minimum share capital in each country

Capital is often the first dividing line, and the gap between the three is wide.

In Germany, a GmbH needs €25,000 of share capital, and at least a quarter of each share plus a total of at least €12,500 must be paid in before the company is entered in the commercial register (GmbHG §5 and §7). Switzerland sets a GmbH at CHF 20,000, fully paid, while the AG sits much higher at CHF 100,000. Austria is now the cheapest entry point in the region: since the company-law reform that took effect on 1 January 2024 (GesRÄG 2023), the GmbH minimum is €10,000, of which €5,000 must be paid in cash. That figure was previously €35,000, and many older guides, including Wikipedia, still quote the old number, so it pays to check the date on any source.

Remember that capital is not a fee. It belongs to the company and can be used in the business once the company exists, so a higher minimum is working capital rather than money lost.

Corporate tax compared

Tax is where the three countries diverge most, and it is usually the deciding factor for holding companies and profit-driven businesses.

Germany has the highest burden. The federal corporation tax of 15% rises to 15.825% with the solidarity surcharge, and on top sits the municipal trade tax, which pushes the effective rate to roughly 30% (broadly in the low- to mid-20s up to around 33%, depending on the municipality). Austria is the simplest: a flat 23% corporate income tax since 2024, with a small minimum corporate tax for companies that make no profit. Switzerland is the most competitive, but the rate depends heavily on the canton: low-tax cantons such as Zug land near 11.85%, while Zurich is closer to 19.7%. For the detail, see our pages on corporate tax in Germany, corporate tax in Switzerland, and corporate tax in Austria.

A word of caution: a low canton rate is only part of the picture. Substance requirements, withholding taxes, and your own country’s rules on controlled foreign companies all matter, which is why tax should be planned with an adviser rather than chosen from a headline number.

VAT and indirect taxes

Indirect tax follows a similar pattern. Germany charges 19% standard VAT (with a 7% reduced rate), Austria 20%, and Switzerland 8.1% — the lowest of the three. Because Germany and Austria are inside the EU VAT system, intra-EU B2B trade often runs on the reverse-charge mechanism and a VAT identification number. Switzerland, outside the EU, has its own VAT regime, so cross-border sales into the EU are treated as imports and exports rather than internal EU movements.

EU access and market reach

This is the single biggest structural difference. Germany and Austria are EU members and part of the customs union, so a company there has full access to the single market, free movement of goods, and the EU’s network of trade rules. Germany also offers the largest economy in Europe and a vast domestic market, which is why it suits manufacturing, cross-border trade, and EU-facing operations.

Switzerland is outside the EU and the customs union. It trades with the EU through a web of bilateral agreements, which keeps it closely integrated but not seamless: goods crossing the border face customs formalities, and EU rules do not apply automatically. For a business selling physical products across Europe, that friction matters. For a holding company, a finance or IP vehicle, or a brand that values Switzerland’s reputation and stability, it is rarely a problem. Choosing between an EU and a non-EU base is therefore less about prestige and more about how your goods and customers actually move.

Forming a company as a foreigner

You do not need to be a citizen of any of these countries to own a company there, but the practicalities differ.

• Germany places no nationality or residency requirement on ownership. A foreign founder can hold and run a German GmbH, and we routinely set them up for clients who never relocate.
• Austria is similar: no residency requirement to own a Ges.m.b.H.
• Switzerland is the strict one. A Swiss company must have at least one director or representative who is resident in Switzerland, so a non-resident owner needs a resident or nominee director to satisfy the rule.

If you intend to relocate as well as incorporate, each country has its own immigration route. Germany offers a self-employment residence permit under §21 of the Residence Act, plus the EU Blue Card for qualifying salaried roles (the 2026 standard salary threshold is €50,700, or €45,934.20 for shortage occupations). Austria runs the Red-White-Red Card for self-employed key workers, which generally expects investment of at least €100,000 plus a macroeconomic benefit. Switzerland uses a quota-based B permit with an economic-interest test and cantonal pre-approval. None of these is automatic, and immigration outcomes are never guaranteed.

Do you need to live there or have a local director?

For ownership, none of the three requires you to live in the country. The key operational difference is the resident director: Switzerland requires one, Germany and Austria do not. Germany and Austria still expect a managing director who can act for the company, and a local director can make banking and day-to-day dealings far smoother for non-residents even where it is not legally mandatory.

How long does it take, and the ready-made shortcut

Forming a new company in any DACH country takes time: a notarial deed, paying in the capital, the register entry, and then tax and VAT registration. In practice that runs to several weeks, and longer once a foreign owner has to clear banking checks.

The shortcut is to buy a ready-made (shelf) company that is already registered and clean. Because the entity already exists in the register, ownership passes by a notarised share transfer and you can be operating within days rather than weeks. We offer ready-made companies in all three jurisdictions: a shelf company in Germany, a GmbH in Austria, and a shelf company in Switzerland — or you can compare the whole region on our shelf company for sale in Europe page. For founders who must contract now, this is usually the more practical route.

Deciding between Germany, Austria, and Switzerland? Request a free callback with our lawyers, with no commitment. Talk to our team.

Which country should you choose?

There is no single best answer, because the right base depends on what you are optimising for. As a starting point:

• Largest market and EU reach: choose Germany. It has the biggest economy, deep supplier and talent pools, and full single-market access, at the cost of the highest tax and the most paperwork.
• Lowest-cost EU entry: choose Austria. The €10,000 capital and flat 23% tax make it the cheapest credible EU base, with the same single-market access as Germany and a gateway to Central and Eastern Europe.
• Lowest tax, premium banking, and stability: choose Switzerland. Low-tax cantons and a strong banking reputation are compelling, provided you can live with non-EU status and the resident-director requirement.
• Holding company: it depends on the group. Switzerland is attractive for tax and stability; Germany and Austria suit holdings that need EU footing. We model this per case rather than recommending a default. See holding company in Europe.

A common mistake is to pick the lowest tax rate in isolation. The total cost of a jurisdiction includes substance, banking, accounting, language, and how easily your customers and goods reach you. That is why we map the decision to your actual business before recommending a country.

What about Liechtenstein?

There is a fourth German-speaking option that often gets overlooked. Liechtenstein sits between Switzerland and Austria, uses the Swiss franc, and is part of the EEA, which gives it single-market access that Switzerland lacks. Its AG requires CHF 50,000 of fully paid capital. It is a specialist choice — popular for holding and asset-protection structures — and we cover it alongside the big three. See our guidance on a company in Liechtenstein.

Cost: what’s included and what costs extra

Whichever country you choose, it helps to separate the capital from the service. The capital belongs to your company; the rest is the cost of getting it set up and running.

Concrete figures depend on the country, the entity, and the extras you choose, so we quote transparently for your situation rather than publishing a misleading single number. You can start with the relevant country page — company formation in Germany, company formation in Austria, or company formation in Switzerland — and we handle the rest, including a business bank account in Germany where you need one. If you are based abroad, our guide on how to buy a company as a foreigner explains the remote process.

Frequently asked questions

Official sources

• German Limited Liability Companies Act (GmbHG), official English text — gesetze-im-internet.de
• Swiss Code of Obligations (company law) — fedlex.admin.ch
• Corporate tax rates, PwC Worldwide Tax Summaries — Germany, Austria, Switzerland

Ready to choose your DACH base?

Contact Müller Konsult for a clear, no-obligation assessment. We compare Germany, Austria, Switzerland, and Liechtenstein against your goals, then form or supply the right company and guide you through banking, tax, and compliance. Müller Konsult · Königsallee 27, 40212 Düsseldorf · +49 211 5403 8800 · info@gmbhforsale.com · Request a callback

Reviewed by Stefan Stelthove, Corporate & Commercial Lawyer, Müller Konsult. Last updated 7 June 2026. This article is general information, not tax, legal, or immigration advice; rules change, so confirm the current position before you act.

Related: Company formation in Germany · Company formation in Switzerland · Company formation in Austria · Shelf company for sale in Europe · Holding company in Europe