In addition to the general Swiss rules on income taxation, the canton of Glarus (GL) applies cantonal and communal practices that can have a significant impact on the effective tax burden. This page highlights situations in which special rules or allocation mechanisms are particularly relevant, especially for mobile individuals, property owners, self-employed taxpayers and cross-border cases.

The information below is descriptive and does not replace the wording of Glarus tax legislation, federal law, double tax treaties or individual rulings. The correct tax treatment in any given case depends on the applicable rules and the taxpayer’s specific facts in the relevant tax year.

New Arrivals and Departures

Moves into or out of Glarus during the tax year raise questions around tax residency and the allocation of income and assets:

• Arrival in Glarus: Tax residency usually begins when an individual establishes their main place of living in the canton (centre of vital interests).
• Departure from Glarus: Tax residency generally ends when the centre of life is transferred to another canton or abroad. Glarus may retain limited taxing rights over certain GL- sourced assets, such as real estate located in the canton.
• Intercantonal allocation: For the year of arrival or departure, income and wealth often need to be allocated between Glarus and other cantons under federal allocation principles.

Accurate reporting of arrival and departure dates, prior residence and the timing of income is essential to avoid intercantonal double taxation and disputes between tax authorities.

Cross-Canton Situations and Non-Residents

Although Glarus is not a border canton, cross-canton and international links are still common:

• Residents of Glarus working in other cantons or abroad must consider intercantonal allocation rules and, where relevant, double tax treaties for employment and self-employment income.
• Non-residents with limited tax liability in Glarus – for example, due to real estate, a permanent establishment or local self-employment – are taxed only on GL-sourced income and assets, although worldwide income may be used for rate-determining purposes.
• Cross-border pensions, director’s fees and investment income may fall under specific treaty provisions that determine where taxation takes place and how relief is granted.

The final result depends on the relevant treaty, the type of income and factual elements such as residence, place of work and allocation of assets between cantons and countries.

Withholding Tax (Quellensteuer) and Subsequent Ordinary Assessment

Foreign nationals without a permanent residence permit who work in Glarus may be taxed at source on their employment income. Key aspects include:

• Mandatory subsequent ordinary assessment where income, assets or other thresholds are exceeded or additional taxable income is present.
• The possibility of a voluntary ordinary assessment in order to claim deductions not fully reflected in the withholding tax tariff (e.g. significant pillar 3a contributions, childcare costs, substantial professional expenses).
• Changes in personal circumstances – such as marriage, divorce, acquisition of property in Glarus or a change of residence or permit – which can trigger a shift from pure withholding tax treatment to ordinary taxation.

In a subsequent ordinary assessment, federal and cantonal/communal taxes are recalculated as if ordinary taxation had applied for the entire year, with tax at source credited against the final liability.

Investment Income, Dividends and Capital Gains

Glarus broadly follows the general Swiss framework for investment income:

• Interest and dividends are generally taxable as income, with relief (e.g. partial taxation or participation relief) in certain cases for qualifying participations.
• Private capital gains on movable assets (e.g. gains on privately held shares or funds) are usually tax-free for non-professional investors.
• Taxpayers classified as professional securities traders may have their gains taxed as business income, based on federal criteria such as trading frequency, short holding periods and use of leverage.
• Real estate capital gains in Glarus are subject to a separate cantonal real estate gains tax, with tariffs that depend on the amount of gain and the holding period. In Glarus, the system is dualistic: gains on property in private assets are subject to real estate gains tax, while gains on property in business assets are taxed through ordinary income or profit tax.:contentReference[oaicite:0]{index=0}

Whether an investor is treated as private or professional, and how particular instruments are categorised, typically requires a case-by-case assessment.

Income from Self-Employment and Partnerships

For self-employed individuals and partners in partnerships active in Glarus:

• Business profits are taxed as ordinary income at federal and cantonal/communal level in the hands of the owner or partners.
• Only business-related expenses are deductible; private living expenses remain non-deductible even if paid from business accounts.
• Mixed-use assets (such as vehicles or properties used both privately and for business) must be reasonably allocated between private and business use.
• Losses can usually be carried forward and offset against future business income within statutory limits.

In more complex situations (e.g. cross-border service provision, intra-group arrangements or intellectual property structures), advance clarification or rulings with the tax authorities may be advisable.

Employee Participation Plans, Bonuses and Severance Payments

While Glarus is a smaller canton, modern remuneration structures also occur and can raise specific questions:

• Employee share and option plans are taxed based on federal rules and cantonal practice on valuation and timing (grant, vesting or exercise depending on the plan).
• Long-term incentive plans (LTIs), RSUs and similar awards, especially where granted by foreign group entities, may require allocation between Switzerland and other countries based on workdays or comparable methods.
• Bonuses and severance payments can, in some circumstances, receive a different treatment from regular salary, particularly where they compensate for loss of employment or future income.

Cross-border employment, international assignments and split-payroll structures need to take account of both Swiss practice and applicable treaty rules to avoid double taxation.

Pensions and Retirement Income

Pensions and other retirement-related income for Glarus residents may involve special rules, especially where multiple pension schemes or foreign pensions are involved:

• Benefits from the 2nd pillar (occupational pensions) and pillar 3a are taxed differently depending on whether they are received as annuities or lump-sum payments.
• Lump-sum withdrawals from pension schemes are typically taxed separately at preferential rates at federal and cantonal level.
• Foreign pensions may be taxable in Switzerland, abroad or both, depending on the relevant double tax treaty, with relief commonly provided via exemption with progression or tax credits.:contentReference[oaicite:1]{index=1}

For individuals with pension rights in multiple countries, the timing, sequencing and form of withdrawals can have a major impact on total tax exposure in Glarus.

Real Estate in Glarus

Real estate ownership and transactions in Glarus are subject to specific rules, particularly in relation to real estate gains tax:

• Imputed rental value of owner-occupied property or actual rental income from rented property must generally be declared as income. Deductions for mortgage interest and maintenance expenses are available within cantonal guidelines.
• Real estate gains tax (Grundstückgewinnsteuer) is levied on gains from the sale of property held in private assets. The tax rate depends on the amount of the gain and can be reduced significantly for long holding periods; conversely, surcharges may apply for very short ownership periods.:contentReference[oaicite:2]{index=2}
• In Glarus, only private real estate gains are subject to real estate gains tax; gains on property in business assets are taxed via ordinary income or profit tax.:contentReference[oaicite:3]{index=3}
• Instead of a classic handover tax, Glarus typically levies land register fees for property transfers; these function more as administrative fees than as a separate transfer tax.:contentReference[oaicite:4]{index=4}
• Non-resident owners of Glarus property are usually subject to limited tax liability and corresponding filing obligations in the canton.

For larger property transactions, advance estimates from the tax authorities and careful documentation of acquisition costs, improvements and holding periods are advisable.

International Double Taxation and Relief

Where taxpayers have income or assets in more than one country, the interaction between Glarus tax law, federal rules and double tax treaties is decisive. Common constellations include:

• Residence in Glarus with employment or business activities abroad,
• Foreign investment income and foreign real estate,
• Pensions and other retirement income from multiple countries.

Relief mechanisms may involve:

• Exemption with progression,
• Tax credit methods, and
• Treaty-specific provisions for employment income, pensions, directors’ fees and other items.

The actual relief granted depends on the treaty wording and the taxpayer’s circumstances, including residence status, sources of income and the allocation of assets and taxing rights between states.:contentReference[oaicite:5]{index=5}

Practical Guidance

The special rules outlined on this page show that Glarus income taxation can become significantly more complex in situations involving:

• Moves into or out of the canton,
• Cross-canton or international work and residence,
• Withholding tax and subsequent ordinary assessments,
• Self-employment, partnerships and small family businesses,
• Real estate ownership and real estate gains tax in Glarus, and
• Foreign pensions and multi-jurisdiction investment structures.

In such cases, obtaining personalised advice and, where appropriate, clarifying the treatment with the tax authorities in advance is often advisable. The other sections of the Glarus income tax guide – Rates, Deductions, Filing Requirements and Examples – provide the general framework within which these special rules operate.