Schaffhausen

Schaffhausen is Switzerland's northernmost canton, a compact industrial powerhouse of approximately 84,000 inhabitants nestled in a distinctive geographical enclave almost entirely surrounded by Germany. With a GDP of CHF 7 billion and a GDP per capita of CHF 83,300 - significantly above the national average - the canton demonstrates that small scale can coexist with strong industrial productivity.

The canton's economy is anchored by two globally significant industrial groups: Georg Fischer (GF), a diversified industrial conglomerate specializing in piping systems, casting solutions, and precision machining; and SIG Group, a world leader in aseptic carton packaging systems. Together, these companies and their extensive supplier networks define the industrial character of the canton and employ thousands directly and indirectly.

Schaffhausen's manufacturing DNA extends beyond these anchor companies into a dense fabric of precision metalworking shops, tooling specialists, and component manufacturers. Many of these firms are family-owned, second- or third-generation businesses with deep technical expertise and strong export orientations, particularly to Germany, Austria, and broader European markets.

The tax environment is notably favorable, with an effective corporate rate of 15.8% placing the canton well above average in Swiss tax competitiveness. Combined with competitive wealth taxes and a personal income burden below the national average, Schaffhausen offers an attractive fiscal package that helps offset its peripheral location. Several international companies have established holding structures in the canton for this reason.

The succession challenge is the most pressing in the region: 35% of business owners are over 55, and the canton's small size means the local buyer pool is limited. Many succession solutions require national reach or cross-border engagement, with German buyers from neighboring Baden-Wuerttemberg playing an outsized role. The risk of failed successions is amplified by the canton's small economy - the closure of even a few significant employers would have visible economic impact.

Schaffhausen compensates for its peripheral location with proximity to Zurich (50 min), direct access to the German market, a highly skilled but cost-effective workforce augmented by 6,200 cross-border commuters, and a quality of life anchored by the spectacular Rhine Falls - Europe's largest waterfall and a significant tourism draw.