Nonresidents are subject to responsabilità fiscale limitata in Schwyz if they hold Swiss-situs wealth such as:

• Real estate located in Schwyz;
• Business assets or permanent establishments within the canton;
• Partnership interests with Schwyz operations.

Other movable assets (e.g. securities, bank deposits) held from abroad remain outside Schwyz’s taxing rights. The same principles apply for expatriates with split residence or pending relocation.

1. Tax Nexus — What Triggers Schwyz Wealth Tax for Nonresidents

• Real estate ownership: Direct or indirect ownership of property located in the canton.
• Permanent establishment: Fixed place of business, branch, or workshop in Schwyz.
• Partnership participation: Allocation of partnership wealth attributable to Schwyz operations.
• Trusts / foundations: Taxation depends on Swiss recognition and beneficiary control.

Passive investments without a Schwyz situs (e.g. securities held abroad) are excluded.

2. Valuation of Schwyz-Situs Assets

Valuation follows the same rules as for residents (see Regole di valutazione). For real estate, declare the official assessed value (amtlicher Wert) as per cantonal register. For business assets, use the Swiss metodo del praticante (NAV + earnings value blend).

• Include the 31 December mortgage balance for debt allocation.
• Provide exchange-rate conversions for any foreign-currency liabilities.
• Maintain supporting valuation evidence (appraisal, financials).

3. Allocazione del debito

Only debt that economically relates to the Schwyz asset base may be deducted. The portion of total global debt corresponding to Schwyz assets can be allocated proportionally:

Keep balance confirmations and ensure the financing source matches the asset (e.g. mortgage financing for Schwyz property).

4. Filing Obligations

• I non residenti presentano un ritorno limitato covering Schwyz-situs assets and related income.
• Submission is through the cantonal e-filing platform or by paper form (see Moduli e scadenze).
• A Indirizzo di corrispondenza svizzero o rappresentante fiscale must be designated for communication.
• Include valuation documents, mortgage confirmations, and proof of ownership.

Failure to file can trigger estimated assessments and administrative penalties.

5. Double Taxation & Treaties

Switzerland has treaties that allocate wealth taxation rights. For real estate, the lex rei sitae (location of property) rule applies — Schwyz retains full taxing authority. The home country may exempt or credit Swiss wealth tax, depending on the treaty model.

• OECD Model: Property taxed where located; exemption with progression or foreign tax credit at home.
• U.S. residents: U.S. does not impose general wealth tax, but property remains reportable for U.S. information purposes.
• EU residents: Coordination through bilateral treaties; confirm treatment in your country of residence.

6. Tax Representative & Power of Attorney

Nonresidents generally appoint a Swiss tax representative (advisor or fiduciary) authorised to receive notices and manage filings. The representative can request extensions, respond to queries, and ensure proper debt allocation.

7. Disposals, Exit & Repayment

Upon selling Schwyz property or closing a local business, the tax nexus ends at the transaction date. File a final return reflecting:

• Disposal proceeds and any capital gain (separately taxed).
• Repayment of related debt.
• Remaining wealth balance at 31 December if assets persist.

8. Planning Notes for Nonresidents

• Maintain clear evidence of property financing and value — audits are document-driven.
• Use realistic exchange rates and avoid excessive debt allocation.
• Where multiple Swiss properties exist, allocate proportionally by official value across cantons.
• Consider future residence changes or repatriation to optimise double tax relief.