Swiss apartheid? Alpine real estate.

• Author: Mangu-Ward, Katherine
• Position: Citings - Brief article

LOOKING FOR a low-tax environment to build your dream home? The Swiss canton of Obwalden has a deal for you. How does "a sunny location, with low noise emissions [and] good amenities," sound? They'll even throw in "an unrestricted view that cannot be built on" One catch: You have to be extremely wealthy.

Three years ago, Obwalden voted itself a 1.8 percent local income tax rate and a 6.6 percent corporate tax rate. Although the move attracted many businesses, virtually all merely acquired a mailing address in the canton and failed to bolster the local economy.

In Switzerland, known worldwide as a tax haven, cantons compete to create the friendliest tax environment, so raising taxes isn't a viable option. Instead, town fathers have decided to make previously restricted agricultural land available for construction. These "special...