Millennium seeks Geneva tax deal to expand Swiss base

Millennium Management is negotiating a tax arrangement with Geneva authorities that could allow the New York-based hedge fund to expand its presence in the French-speaking canton and draw more portfolio managers and traders to the city.

The firm manages more than $92 billion and employs about 6,900 people. Millennium already has offices in Geneva and Zug, but its operation in Zug is currently larger. The discussions with Geneva officials aim to create a tax package that would make the canton more competitive for the firm’s staff and could support additional hiring and local investment.

Swiss cantons set their own tax rules. The maximum personal income tax rate in Geneva can approach 45 percent, while rates in Zug are roughly 20 percent. Cantonal tax differences have led local authorities to offer incentives to attract wealthy residents and financial firms.

Millennium operates from multiple financial centres, including London, New York and Singapore, and allows employees to work from more than 140 locations. The firm opened an office in Dubai in 2020 and has expanded its presence there. Some employees hesitant to return to Dubai have considered alternative locations such as Jersey for more tax-efficient arrangements.

A tax agreement in Geneva would aim to make the canton more attractive to staff who prefer its language, location or lifestyle but are deterred by higher tax rates. Compensation for portfolio managers and traders at the firm can be variable and location flexible, so taxation is an important factor in where staff choose to live and work.

The outcome of the negotiations will determine whether Geneva gains a larger share of Millennium’s Swiss staff and whether the firm increases hiring or investment in the canton. Any agreement would be part of ongoing competition among Swiss cantons for high-net-worth residents and financial-sector jobs.