Swiss pensioners flee canton Zug as rents continue to skyrocket

While known for its low taxes, good connections and beautiful scenery, the lure of canton Zug may slowly be losing its appeal for some. More and more Swiss pensioners are being forced to leave, with experts speculating that excessive rent prices could be the cause.

Retirees hit hardest by Zug’s high rent prices

New data suggests Switzerland's housing shortage is affecting not just young job seekers and expats, but also retirees. So far in 2026, Zug's population has decreased and it is largely pensioners who are making the move.

In fact, the trend has been ongoing for several years. According to the Federal Statistical Office (FSO), reported by Blick, a net average of 107 Swiss citizens aged over 65 have fled the canton each year over the past three years, nearly triple the average of 37 departures per year over the preceding 12 years.

Hendrik Budliger from research and consulting firm Demografik explains that the most likely reason is the high cost of living, particularly rent prices. "Income drops significantly upon retirement," Budliger said. “Pensioners therefore benefit less from the low taxes and continue to pay very high rents. For many, the math simply doesn't add up anymore."

Affluent newcomers and international firms drive up rents

Zug continues to attract "affluent newcomers" who flock to the canton to benefit from its low taxes and job opportunities. The canton says it has the highest density of international company headquarters in Switzerland, including Johnson & Johnson, Biogen, AstraZeneca, Coca-Cola, Amag, Siemens and Bitcoin Suisse.

Due to high demand and limited supply, rent prices in Zug are currently the highest in the country. The cost of renting an apartment in Zug is now almost 50 percent more than it was 10 years ago, according to real estate firm Iazi.

In the centre of the city, a 2,5-room apartment will cost an average of 2.600 Swiss francs a month. By comparison, the average net rent in Switzerland, reported by the FSO in 2024, is 1.485 francs per month.

Zug government doubts rent link

The Zug cantonal government is not convinced that high prices are forcing pensioners out. "We do not consider the theory that people aged 65 and over are leaving the canton primarily due to high rents and the fact that low taxes are no longer a decisive factor to be plausible," reports Blick.

The population is instead increasing, with Zug typically seeing a surge in new residents during the second half of the year, when employees relocate to start new jobs or housing developments are completed and offer new opportunities to move.

Furthermore, government councillor Silvia Thalmann-Gut (the Centre) explained that "If one were to reduce [the canton's] attractiveness [...] then all factors contributing to prosperity would also be affected. That is not the path of the government council and is not politically desirable."

The local government is taking steps to try to address the housing shortage through its 2030 housing policy strategy (Wohnungspolitische Strategie). Measures planned include approval to build taller residential buildings where at least 40 percent of apartments are affordable.