Demographic shifts in Zug and Germany highlight migration trends

The Swiss canton of Zug is experiencing a population decline, particularly among retirees and the middle class. Despite low taxes and high security, rising rents driven by high earners in the fintech, crypto, and banking sectors are making the region unaffordable for many. Experts suggest that as retirees face reduced income, the high cost of living outweighs the benefits of low taxation. In response, the canton plans to increase construction with a mandate for 40 percent affordable housing, though implementation is expected to take years.

Simultaneously, Germany is facing a significant increase in emigration. According to economist Stefan Kolev, 289,000 German citizens left the country in 2025, doubling the figures from 2014. This trend is attributed to a poor cost-benefit ratio regarding high taxes versus declining public services and infrastructure. While some emigrants move to countries like Paraguay, others are moving to neighboring Switzerland, which benefits from the influx of German professionals.