Switzerland consists of 26 cantons — and that has real consequences for law, taxes and permits. An overview of what is regulated cantonally and what is not.
Swiss federalism distributes state power across three levels: federation, cantons, municipalities. The Federal Constitution (Art. 3 FC) guarantees cantonal sovereignty insofar as the federation is not competent. In practice that means: many things that matter in daily life are decided at the cantonal level.
Distribution of tasks
Federation
Foreign policy, army, currency, postal service, social insurance (AHV, IV, ALV), federal tax, customs, largely civil law (CC, CO), criminal law (CC). The federal legislator defines the national framework.
Cantons
Police, education (schools, universities), cantonal taxes, migration enforcement (federal law is enforced by the canton), construction, hospitals, judicial organisation (courts are cantonal authorities but apply federal law). Cantonal laws supplement federal law in many areas — e.g. implementing ordinances on tenancy law or road traffic.
Municipalities
Local administration, communal taxes (in most cantons the main tax source for municipalities), citizenship (naturalisations begin at municipal level), construction enforcement, local infrastructure.
What does this mean for clients?
Tax burden varies cantonally and communally by a factor of 2-3. A wealthy private person can pay 100,000 to 400,000 Swiss francs in taxes per year, depending on the canton of residence. Companies can have significantly lower tax rates in Zug, Schwyz or Lucerne than in Geneva, Basel or Bern.
Migration permits are granted under federal law but enforced cantonally. Zurich, Geneva and Zug have very different practices on permit extensions, permit-category changes and the S-status transition.
In civil proceedings, cantonal particularities apply: court organisation, conciliation proceedings, lawyer monopoly before certain instances, court costs. Anyone entering a legal dispute with a Swiss counterparty should know the cantonal procedural law — or have a lawyer who knows it.
Practical consequence
If you do international business, plan a stay or arrange a succession, the choice of canton is not a side question. It can make the difference between a grinding procedure and a smooth solution.