Nonresidents are subject to Fribourg wealth tax on assets that are economically connected to the canton. In practice, this limited tax liability mainly concerns real estate and business assets located in Fribourg, while foreign portfolios and movable property held abroad remain outside the Fribourg tax base.

This guide summarises the scope, valuation framework, and compliance requirements for the 2025 tax year for nonresident individuals with assets in the canton of Fribourg.

1. Scope of Limited Tax Liability

A nonresident becomes liable for Fribourg wealth tax if they hold any of the following:

• Residential or commercial real estate situated in the canton of Fribourg
• Land or agricultural property located within Fribourg
• Permanent establishments or fixed places of business (e.g., workshops, offices, hotels, restaurants) in the canton
• Business assets allocated to a Fribourg branch or place of effective management

Assets outside Switzerland — such as foreign securities, overseas real estate, and non-Swiss bank accounts — are excluded from the Fribourg wealth-tax base, but may be relevant in the country of residence for rate or reporting purposes.

2. Valuation Basis

Fribourg applies cantonal valuation rules that are harmonised with federal law but implemented locally:

• Real estate: Cantonal tax value (valeur fiscale / Steuerwert), generally below open-market value
• Securities and bank assets: Year-end tax value determined using official federal tax value lists and FX rates
• Business assets: Book or fair value according to Swiss accounting standards, with cantonal adjustments where required
• Pension assets: Occupational and pillar 3a pension capital is typically exempt from wealth tax until payout

The tax value for real estate reflects a fraction of market value and is set by the Fribourg tax authority based on location, type, and use. For more technical detail on valuation in this canton, see Valuation Rules.

3. Debt Allocation

Debt allocation for nonresidents in Fribourg follows the Swiss principle of economic connection combined with proportional allocation:

• Mortgages secured on Fribourg property are deductible from the wealth-tax value of that property.
• Other debts are deductible only insofar as they can be economically tied to Swiss assets or allocated proportionally.
• If the taxpayer owns property in several Swiss cantons, total debt is allocated among cantons based on the relative taxable values of those assets.

Interest on debt is relevant for income tax and is apportioned across jurisdictions by reference to Swiss-sourced assets and income.

4. Allowances & Exemptions

Nonresident taxpayers in Fribourg generally do not benefit from the full range of personal allowances and deductions granted to resident individuals. However, certain items are usually excluded from the wealth-tax base:

• Tax-exempt pension capital (2nd pillar and pillar 3a) until withdrawal
• Normal household goods and personal belongings
• Smaller technical exemptions required under harmonised cantonal law

For nonresidents, the effective wealth tax burden is primarily driven by the property’s tax value, the cantonal and municipal rates, and debt allocation.

5. Double Tax Treaties

Under Switzerland’s double tax treaties, taxation of immovable property is typically assigned to the state where the property is located. As a result, Fribourg retains the right to tax real estate and related business premises situated in the canton, even if the owner is resident abroad.

Relief is usually provided in the country of residence through:

• Exemption with progression, or
• Foreign tax credit for Fribourg wealth tax against home-country wealth or property taxes.

It is important to check the specific treaty between Switzerland and your country of residence and to retain Fribourg tax assessments and receipts as evidence of Swiss tax paid.

6. Swiss Tax Representative

Nonresidents will typically need to provide a Swiss correspondence address or appoint a tax representative when dealing with the Fribourg tax authorities.

• Swiss fiduciaries, tax advisors, or lawyers can act as authorised representatives.
• Official correspondence and assessments are issued in French or German, depending on the commune.
• Using a representative helps manage deadlines, language issues, and any appeals or objections.

7. Filing & Compliance

Nonresident owners of property or business assets in Fribourg file a limited Swiss tax return covering Swiss-situs income and wealth. The wealth tax portion focuses on net taxable assets situated in Fribourg as at 31 December.

• Official confirmation of the property’s tax value (valeur fiscale / Steuerwert)
• Mortgage and loan confirmations as of year-end
• Rental income and expense statements for let property
• Business balance sheet and asset schedules where a Fribourg permanent establishment exists

Filing deadlines broadly align with those for resident taxpayers. Extensions are generally available upon request, often submitted via a Swiss representative.

8. Example — Nonresident Residential Property Owner

Profile: Resident of France, owns a residential property in Fribourg.

• Tax value (valeur fiscale): CHF 820,000
• Mortgage balance: CHF 500,000
• Combined cantonal/municipal multiplier (illustrative): 1.50 (150 % of simple tax)

Step 1 — Net taxable wealth: CHF 820,000 − CHF 500,000 = CHF 320,000
Step 2 — Simple wealth tax (illustrative progressive rate): 3.0‰ of CHF 320,000 = CHF 960
Step 3 — Applying multipliers: CHF 960 × 1.50 = CHF 1,440
→ Indicative effective burden of about 0.45 % of net taxable wealth (illustrative only; actual rates depend on year and commune).

9. Ending Fribourg Tax Liability

Wealth tax liability in Fribourg normally ends when the property or business assets in the canton are sold, transferred, or otherwise disposed of. A final limited tax return must be filed and any remaining wealth tax and property gains taxes settled.

The Fribourg tax office should be notified promptly of the disposal to avoid continued assessments based on outdated ownership data.

10. Planning Insights for Nonresidents

• Obtain an estimate of the Fribourg tax value and multipliers before acquiring property.
• Align mortgage structure and debt allocation with your broader cross-border wealth and estate planning.
• Review how Fribourg wealth tax interacts with home-country rules and any applicable double tax treaties.
• Use a Swiss tax representative to manage filings, coordinate with your home-country advisor, and handle French- or German-language correspondence.