Nonresidents are subject to Aargau wealth tax on assets that are economically connected to the canton. This limited tax liability applies mainly to real estate or business assets located in Aargau, while foreign movable assets and portfolios remain exempt.

This guide summarises the applicable framework, valuation basis, and compliance requirements for the 2025 tax year.

1. Scope of Limited Tax Liability

A nonresident is liable for Aargau wealth tax if they hold any of the following:

• Real estate or land situated within the canton of Aargau
• Permanent establishments (workshops, offices, commercial premises) in Aargau
• Business assets physically or functionally linked to Aargau operations

Assets outside Switzerland — such as foreign securities, bank accounts, and overseas real estate — are excluded from Aargau taxation.

2. Valuation Basis

Aargau applies valuation rules that differ slightly from some other cantons:

• Real estate: Cantonal Steuerwert (tax value), typically below market value
• Business assets: Book or fair value based on Swiss accounting principles
• Debt: Deductible only if connected with Aargau-taxable assets

The Steuerwert is usually derived from comparative valuation and may represent approximately 60–80% of market value depending on asset type and commune. More detail is available under Valuation Rules.

3. Debt Allocation

Debt deductions for nonresidents in Aargau follow proportional allocation principles:

• Mortgage debt secured against Aargau property is deductible up to its balance at year-end.
• General personal borrowing not tied to Swiss assets is excluded.
• If the taxpayer holds Swiss property in multiple cantons, Aargau applies proportional allocation based on taxable values.

Interest deductions apply for income tax purposes but are limited according to Aargau-sourced income shares.

4. Allowances & Exemptions

Nonresidents typically do not receive personal allowances such as marital or child deductions. Only asset-specific exemptions may apply, including:

• Tax-exempt pension assets
• Household items in personally used residential property (if applicable)

5. Double Tax Treaties

Under Switzerland’s tax treaties, taxation of immovable property remains assigned to the state where the property is located — meaning Aargau retains taxing rights on Aargau real estate.

Relief is generally granted in the taxpayer’s country of residence through exemption or credit, depending on treaty structure.

• Confirm whether your residence state applies exemption with progression or foreign tax credit.
• Ensure filings are completed both in Aargau and in the residence jurisdiction.
• Maintain official assessments and receipts as proof of payment.

6. Swiss Tax Representative

Nonresidents must normally provide a Swiss correspondence address or appoint a tax representative for communication with Aargau authorities.

• Swiss advisors or fiduciaries may act as authorised representatives.
• Assessment notices and correspondence are issued in German.
• Representation helps avoid missed deadlines and estimated assessments.

7. Filing & Compliance

Nonresidents file a limited wealth tax return covering Aargau-taxable assets. Required documentation may include:

• Extract showing the property’s Steuerwert
• Mortgage lender confirmation
• Rental income schedules if applicable

Filing deadlines largely align with resident deadlines, and extensions can be requested through a representative.

8. Example — Nonresident Property Owner

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

• Steuerwert: CHF 780,000
• Mortgage balance: CHF 520,000
• Commune multiplier: 0.95

Taxable wealth: CHF 260,000 → Cantonal base CHF 780 → × (1 + 0.95) = CHF 1,521 total → Effective ≈ 0.59 % of net taxable value.

9. Ending Aargau Tax Liability

When disposing of Aargau property, a final limited return must be filed and any outstanding wealth tax settled. Notification should be submitted promptly to prevent continued assessments.

10. Planning Insights for Nonresidents

• Review ownership structure, especially where cross-border estate or wealth tax applies.
• Align exchange-rate use and valuation timing with the residence country return.
• Consider treaty interaction with home-country reporting obligations.
• Use a Swiss representative to streamline notices and filing logistics.