Millennium Management is negotiating with authorities in Geneva over a potential tax arrangement that could pave the way for an expansion of its presence in the French-speaking Swiss canton, according to a report by the Financial Times.
The move comes as regions across the country compete aggressively for wealthy individuals and financial firms.
The New York-based hedge fund, which manages more than $92bn and employs around 6,900 people, already operates offices in both Geneva and Zug. However, Zug currently has the larger operation, with its significantly lower tax burden making it an attractive base for investment professionals.
A tax agreement in Geneva could help the canton compete more effectively for Millennium portfolio managers and traders who favour the French-speaking region, while potentially supporting further hiring and investment by the firm.
Switzerland’s decentralised tax system gives individual cantons considerable control over rates and incentives, creating intense competition for high-net-worth residents and financial businesses. The maximum personal income tax rate in Geneva can approach 45%, compared with roughly 20% in Zug.
For a hedge fund such as Millennium, where portfolio managers and trading staff can have considerable flexibility over where they work, taxation is an increasingly important factor in decisions about where to locate employees.
Millennium has built a geographically diverse operating model, with offices in major financial centres including London, New York and Singapore and employees able to work from more than 140 locations. The firm has also expanded its presence in Dubai since establishing an office there in 2020, responding to demand from traders.
The firm has separately explored alternative locations for employees reluctant to return to Dubai, with Jersey among the destinations considered by staff seeking more tax-efficient arrangements.
