Zurich Wealth Tax Guide:

nonresident nonresident

Zurich Wealth Tax Nonresident Guide

Zurich Wealth Tax: Nonresident & Expat Guide

Rules for individuals who are not tax resident in Zurich but hold Swiss-situs assets — including real estate and business property.

Scope & Who This Applies To

You are treated as a nonresident for Zurich tax purposes if your global tax residence is outside the Canton of Zurich (and Switzerland), yet you own Swiss-situs assets that create a limited Zurich tax nexus. The most common cases are Zurich real estate and business assets attributable to a Swiss permanent establishment.

Important: Nonresidents are taxed in Zurich only on Swiss-situs assets. Worldwide assets remain outside Zurich’s scope, but may be relevant for allocation and documentation.

Taxable Assets for Nonresidents

  • Real estate in Zurich (land and buildings) — valued at the official assessed value (amtlicher Wert).
  • Business assets attributable to a Swiss permanent establishment in Zurich (e.g., a branch, workshop, rental business).
  • Allocated debts that directly relate to Zurich assets can be offset (e.g., Swiss mortgage on a Zurich property).

Financial assets held abroad without Swiss nexus are not part of the Zurich nonresident wealth base.

Allowances & Deductions

Personal allowances for residents (e.g., CHF 77,000/154,000) generally do not apply in the same way to nonresidents. Zurich practice focuses on the Swiss-situs net wealth. Debt deductions are typically limited to liabilities economically connected to Swiss assets (e.g., property mortgages), and broader worldwide debt may be apportioned pro rata where applicable.

Action: Keep clear evidence of the mortgage or loan directly linked to your Zurich property, including 31 December balances and interest confirmations.

Valuation & Currency

Nonresident valuation follows the same principles as for residents: see Zurich Valuation Rules. Real estate is taken at amtlicher Wert. Foreign-currency amounts are converted using the official 31 December exchange rates recognised for Swiss tax purposes.

How the Nonresident Wealth Tax Is Calculated

  1. Determine Swiss-situs net wealth (Zurich assets minus allocable debts) as at 31 December.
  2. Apply Zurich’s cantonal base tariff to this amount.
  3. Multiply by the municipal tax factor (Steuerfuss) of the property’s location (and church tax if applicable).

If you also hold Swiss-situs assets in other cantons, an inter-cantonal allocation applies. Each canton taxes the portion located on its territory and may apportion debts proportionally.

Note: The applicable municipality is where the property or permanent establishment is located, not your home country residence.

Filing, Representatives & Payments

  • Return type: Limited Zurich return covering Swiss-situs income and wealth.
  • Representative: Zurich commonly requires a correspondence address or an appointed tax representative in Switzerland.
  • Deadlines: Align broadly with resident timelines; request extensions online where offered.
  • Assessments & interest: Provisional/definitive bills are issued; late payment triggers interest and reminders.

Treaty & Cross-Border Notes

Double tax treaties typically assign taxing rights on real estate to the state where the property is located. For wealth tax, this means Zurich remains competent over Zurich-situs property. Treaties may govern method of relief in your country of residence (exemption or credit mechanisms). Coordinate filings to avoid mismatches.

For U.S. persons, note that Switzerland has no federal wealth tax; Zurich’s levy is cantonal/municipal. U.S. foreign tax credits for wealth tax are generally not available.

Lump-Sum Taxation (Forfait)

The Canton of Zurich does not offer lump-sum taxation (Pauschalbesteuerung) for newcomers. Some other Swiss cantons do; however, any forfait is irrelevant for Zurich communal wealth tax on Zurich-situs assets since the regime is not available in Zurich.

Worked Examples (Illustrative)

Example A — Nonresident with Zurich Apartment

  • Property assessed value (amtlicher Wert): CHF 900,000
  • Mortgage balance (31 Dec): CHF 550,000
  • Municipal factor: 1.10

Swiss-situs net wealth: CHF 350,000 → apply cantonal base and × (1 + 1.10). Personal resident allowances do not apply; debt deduction is limited to the mortgage tied to the asset.

Example B — Nonresident with Zurich PE (Business)

  • Business equity attributable to Zurich PE: CHF 1,800,000
  • Bank loan directly financing PE assets: CHF 300,000
  • Municipal factor: 1.05

Swiss-situs net wealth: CHF 1,500,000 → Zurich wealth tax via cantonal base × (1 + 1.05). Keep PE balance sheets and loan agreements to substantiate allocation.

Example C — Properties in Two Cantons

  • Zurich property assessed value: CHF 850,000 (mortgage CHF 500,000)
  • Vaud property assessed value: CHF 650,000 (mortgage CHF 250,000)

Allocation: Each canton taxes its share of Swiss-situs net wealth; mortgages are apportioned to the properties they finance.

Compliance Checklist

  • 31 December statements and assessment extracts for Zurich property
  • Mortgage confirmations (balance, interest) linked to Swiss assets
  • Business financials if a Zurich permanent establishment exists
  • Official FX rates used for any non-CHF items
  • Representative appointment / correspondence address in Switzerland
  • Prior Zurich assessments and payment references

FAQs

Do I file a full Zurich return as a nonresident?
No. You typically file a limited return covering Zurich-situs income and wealth.
Can I deduct worldwide debts?
Generally only debts economically connected to Swiss assets are deductible; broader debt may be apportioned if justified.
Which municipality’s multiplier applies?
The municipality where the Zurich property or permanent establishment is located.
Is lump-sum taxation available in Zurich?
No. Zurich does not offer a forfait regime.