Nonresidents are subject to Thurgau 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 Thurgau, while foreign portfolios and movable property held abroad are not taxed in the canton.

Thurgau levies a proportional wealth tax: a uniform simple rate of 1.1‰ on net wealth, multiplied by the cantonal/municipal Steuerfuss (tax factor).:contentReference[oaicite:0]{index=0} This guide summarises scope, valuation and compliance for the 2025 tax year for nonresident individuals with assets in the canton of Thurgau.

1. Scope of Limited Tax Liability

Under the Thurgau tax act, natural persons without tax residence in the canton are subject to tax if they have economic ties to Thurgau, in particular through property or business presence.:contentReference[oaicite:1]{index=1} A nonresident becomes liable for Thurgau wealth tax if they hold any of the following:

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

The tax law specifies that for such economic attachment, tax liability covers at least the income earned in Thurgau and the assets located there.:contentReference[oaicite:2]{index=2} Assets outside Switzerland — such as foreign securities, overseas real estate, and non-Swiss bank accounts — are excluded from the Thurgau wealth-tax base.

2. Valuation Basis

Thurgau’s valuation rules follow the cantonal tax act and the official tax practice:

• General rule: Assets are valued at their market value at the end of the tax period, unless the law provides specific rules for certain asset classes (e.g. real estate, business assets).:contentReference[oaicite:3]{index=3}
• Real estate: Tax value (Steuerwert) based on property valuation principles; this is typically below open-market value and is set by the Thurgau tax authority.
• Securities and bank assets: Year-end tax values using official federal security valuation lists and FX rates.:contentReference[oaicite:4]{index=4}
• Business assets: Book or fair value according to Swiss accounting standards, with cantonal adjustments as needed.
• Pension assets: 2nd pillar and pillar 3a pension capital are normally exempt from wealth tax until payout.

Thurgau practice also confirms that certain assets (e.g. household goods and personal effects) are explicitly excluded from wealth tax.:contentReference[oaicite:5]{index=5} For detailed valuation principles, see Valuation Rules.

3. Debt Allocation

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

• Mortgage debt secured on Thurgau property is deductible from the wealth-tax value of that property.
• Other debts may be deductible only if they can be economically linked to Swiss assets or must be allocated proportionally across Swiss cantons.
• If the taxpayer owns property in several Swiss cantons, total debt is apportioned based on the relative taxable values of those assets.

Interest on debt is taken into account for income tax purposes and generally allocated across cantons and countries in proportion to the taxable assets and income.

4. Allowances & Exemptions

For resident individuals, Thurgau provides personal allowances (e.g. CHF 100,000 for single taxpayers and CHF 200,000 for jointly taxed couples) when calculating wealth tax; these are applied to net assets before the proportional rate is applied.:contentReference[oaicite:6]{index=6} Nonresident taxpayers, however, generally do not benefit from the full set of personal and social deductions.

Irrespective of residence status, certain assets are typically excluded from the Thurgau wealth-tax base:​:contentReference[oaicite:7]{index=7}

• Household goods and personal belongings
• Non-surrenderable rights and certain pension expectations
• Tax-exempt occupational and pillar 3a pension assets until withdrawal

For nonresidents, the effective wealth tax burden is therefore driven mainly by the property’s tax value, the Steuerfuss, and the recognised debt.

5. Double Tax Treaties

Under Switzerland’s double tax treaties and federal guidance on nonresident wealth taxation, immovable property (real estate) is normally taxed in the state where the property is located.:contentReference[oaicite:8]{index=8} As a result, Thurgau retains full taxing rights over real estate and business premises located in the canton, even when the owner is resident abroad.

Relief for double taxation is usually granted in the country of residence by either:

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

Taxpayers should review the specific treaty between Switzerland and their residence state and retain Thurgau assessments and payment receipts as evidence of Swiss tax paid.

6. Swiss Tax Representative

Nonresidents typically must provide a Swiss correspondence address or appoint a tax representative for dealings with the Thurgau tax authorities.

• Swiss fiduciaries, tax advisors, or lawyers commonly act as authorised representatives.
• Official correspondence and tax assessments are issued in German.
• Using a representative helps manage filing deadlines, communication with the tax office, and any appeals or objections.

7. Filing & Compliance

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

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

Filing deadlines broadly align with those for resident taxpayers; extensions are generally available on request, usually via a Swiss representative.

8. Example — Nonresident Residential Property Owner

Profile: Resident of Germany, owns an apartment in a Thurgau municipality.

• Steuerwert (tax value): CHF 900,000
• Mortgage balance: CHF 600,000
• Simple wealth tax rate: 1.1‰ (0.11%) on net wealth (cantonal law):contentReference[oaicite:9]{index=9}
• Illustrative municipal Steuerfuss: 2.50 (250 % of simple tax — within the range seen in Thurgau communes):contentReference[oaicite:10]{index=10}

Step 1 — Net taxable wealth: CHF 900,000 − CHF 600,000 = CHF 300,000
Step 2 — Simple wealth tax: CHF 300,000 × 1.1‰ = CHF 330
Step 3 — Applying municipal/cantonal factor: CHF 330 × 2.50 = CHF 825
→ Indicative effective burden of about 0.275 % of net taxable wealth. (Illustrative only; actual tax depends on year, municipality and any applicable allowances.)

9. Ending Thurgau Tax Liability

Wealth tax liability in Thurgau usually ends when the Thurgau property or business assets 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 Thurgau tax office should be informed promptly of the disposal so that assessments are stopped and refunds or final bills can be issued correctly.

10. Planning Insights for Nonresidents

• Obtain an estimate of both the Thurgau Steuerwert and the relevant municipal Steuerfuss before acquiring property.
• Align mortgage levels and debt allocation with broader cross-border wealth, inheritance, and estate planning.
• Check how Thurgau’s proportional wealth tax interacts with your home-country wealth or property-tax regime and any double tax treaty.
• Use a Swiss tax representative to coordinate filings and ensure that limited tax liability in Thurgau is correctly reflected in home-country returns.