Zug Wealth Tax Allowances
Zug Wealth Tax: Allowances & Deductions
How Zug determines taxable net wealth — personal exemptions, children’s add-ons, deductible liabilities, pension treatment, and documentation.
Zug levies wealth tax on net assets as at 31 December. Your taxable base equals gross wealth (cash, securities, real estate, business interests, alternatives) minus qualified allowances and deductible liabilities. This page summarises the standard Zug approach for individuals. For the tariff mechanics and municipal multipliers, see Rates & Municipal Multipliers.
Personal Allowances (Exempt Thresholds)
Zug provides a basic personal allowance that varies by filing status, applied before the cantonal base and municipal multiplier. There is typically an increment per dependent child.
| Filing Status | Allowance (indicative) | Notes |
|---|---|---|
| Single | Basic exempt threshold | No wealth tax if net wealth remains below the threshold. |
| Married (joint) | Higher joint threshold | Joint assessment; broader bands in the tariff. |
| Per dependent child | Fixed add-on per child | Added to the parents’ allowance; dependency evidence required. |
Figures are indicative for planning. Always check the current-year thresholds published by the Zug tax administration.
Deductible Liabilities (Netting)
Deduct only legally enforceable, documented liabilities outstanding on 31 December. Common deductible items:
- Mortgages on property (Zug and out-of-canton; allocate proportionally for multi-canton holdings)
- Bank loans and margin loans (contracts + 31 Dec balance confirmations)
- Private loans with written agreements and interest evidence
- Assessed/known taxes due at year-end
Contingent obligations (e.g., guarantees) are not deductible until due and payable.
Pension Assets (Pillar 2 and 3a)
Assets held in occupational pension plans (pillar 2) and tied retirement accounts (pillar 3a) are generally exempt from wealth tax in Zug until withdrawal. Non-tied savings (pillar 3b) remain part of taxable wealth.
- Pension buy-ins and 3a contributions mainly reduce income tax, but shelter assets from wealth tax while invested.
- Maintain certificates showing balances at 31 December.
Valuation Interfaces That Shape the Base
Proper valuation directly affects the allowance-adjusted base:
- Real estate (Zug): Use the official assessed value (amtlicher Wert), typically below market.
- Listed securities: Use recognised year-end price lists.
- Private companies: Apply the Swiss practitioner method (earnings capitalisation and NAV weighting).
- Cryptoassets: Use accepted 31 December reference prices; keep evidence.
Family Attribution & Marital Property
Married couples are jointly assessed in Zug. Assets of dependent children are attributed to the parents. If spouses are taxed separately due to separation, each applies the single allowance and their own debts.
Gifts and inheritances during the year are included in the 31 December wealth balance unless a specific exemption applies.
Documentation Checklist (Wealth Section)
- Bank & securities statements (31 Dec cut-off)
- Mortgage balance confirmations
- Private loan agreements & interest statements
- Real estate assessment extracts (amtlicher Wert)
- Pension summaries (pillar 2 and 3a)
- Valuation worksheet for private companies (practitioner method)
- Official FX table used for non-CHF items
- Prior assessments & payment references
Planning Insights (Zug)
- Because municipal multipliers are low in Zug, debt netting and valuation discipline typically have a larger impact than relocating within the canton — but commune choice can still move the needle.
- Keep leverage genuine and documented; artificial loans risk challenge.
- Use pension vehicles to shelter assets while coordinating with income tax planning.