Nonresidents are subject to Zug wealth tax on assets that are economically connected to the canton. This limited tax liability applies to real estate or business assets located in Zug, and excludes foreign movable property or investments held abroad.

This page outlines the relevant framework, valuation, and compliance requirements for the 2025 tax year.

1. Scope of Limited Tax Liability

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

• Real estate or land situated within the canton of Zug
• Permanent establishments (branches, workshops, offices) in Zug
• Business assets physically or economically linked to Zug operations

Assets outside Switzerland — including foreign securities, deposits, and property — are excluded.

2. Valuation Basis

Zug applies the same valuation methods for nonresidents as for resident taxpayers:

• Real estate: Official tax value (amtlicher Wert) from the cantonal assessment roll
• Business assets: Book or fair value based on Swiss accounting standards
• Debt: Deductible only to the extent economically connected with Zug assets

See Valuation Rules for further technical detail.

3. Debt Allocation

Nonresidents may deduct debt that is directly linked to Zug taxable property or business assets. General or personal debts unrelated to Swiss assets cannot be offset.

• Mortgage debt on Zug real estate is deductible up to its balance on 31 December.
• Foreign loans not demonstrably tied to Swiss assets are excluded.
• Interest on eligible debt is deductible for income tax but proportionally limited to Zug-sourced income.

4. Allowances & Exemptions

Nonresidents generally do not benefit from personal allowances or deductions such as family or children’s exemptions. Only property-specific exemptions (e.g., pension assets or household items within a rented property) may apply.

5. Double Tax Treaties

Switzerland’s tax treaties usually assign taxation of immovable property to the state of location — meaning Zug retains full rights to tax property located within its borders.

Relief is typically provided in the taxpayer’s country of residence via exemption or credit, depending on the treaty model (OECD or UN-based).

• Confirm whether your country applies exemption with progression or foreign tax credit.
• File both returns (Zug and home country) to ensure treaty relief is properly claimed.
• Maintain Swiss tax receipts for proof of payment.

6. Swiss Tax Representative

Nonresidents must usually appoint a Swiss correspondence address or tax representative within Switzerland. This representative handles filings, communications, and assessment notices on behalf of the taxpayer.

• Advisors or trustees located in Switzerland can act as authorised representatives.
• All communications from the Zug tax authority are issued in German.
• Representation avoids missed notices and simplifies compliance.

7. Filing & Compliance

Nonresidents file a limited tax return (covering Swiss-situs income and wealth) with the Zug tax authority. The return includes:

• Property valuation extract (amtlicher Wert) or business balance sheet
• Debt confirmation (e.g., mortgage certificate)
• Rental or business income schedules if applicable

Filing deadlines generally mirror those for resident individuals; extensions are available upon request.

8. Example — Nonresident Property Owner

Profile: Resident of Germany, owns an apartment in Zug.

• Amtlicher Wert: CHF 950,000
• Mortgage balance: CHF 650,000
• Commune multiplier: 0.65

Taxable wealth: CHF 300,000 → Cantonal base CHF 600 → × (1 + 0.65) = CHF 990 total → Effective ≈ 0.33 % of net asset value.

9. Ending Zug Tax Liability

On sale or disposal of Zug property, file a final limited return and settle any remaining wealth tax or property gains tax. Notify the tax office promptly to close the account and avoid default estimates.

10. Planning Insights for Nonresidents

• Review ownership structures (direct vs. via company or trust) with cross-border implications in mind.
• Coordinate valuation timing and exchange rate use across jurisdictions.
• Consider treaty interaction with home-country wealth or property tax regimes.
• Use a Swiss tax representative for filings and official correspondence.