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How much is the wealth tax in Switzerland, below 5M CHF ?

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If one brings a fortune into Switzerland of under 5 million CHF, it should mean that you do not pay wealth tax - at least in the canton of Zug - is that correct?

I would like to get a documented answer that is easy to understand, when I read what I find from the CH tax authorities for that canton, I get confused.

Here is what else I have found, but is it true?
The wealth tax in the Canton of Zug, Switzerland, has undergone significant changes effective from January 1, 2024, aimed at reducing the tax burden and making the canton more attractive for individuals and businesses. These changes include a 15% linear reduction in all wealth tax rates and a doubling of the existing wealth tax allowances. Specifically, for single individuals, the exemption allowance has been increased from CHF 100,000 to CHF 200,000. For married couples or registered partnerships, the exemption has been raised from CHF 200,000 to CHF 400,000, and for minor children, from CHF 50,000 to CHF 100,000

Further to the adjustments, the new tax law includes a partial adjustment of the income tax rate, an increase in deductions for childcare, and the indefinite retention of increased personal deductions initially introduced as an economic measure in response to the COVID-19 pandemic

These reforms are designed to ease the tax burden on Zug's population, strengthen the canton's attractiveness, and are part of a broader strategy to maintain Zug's position as one of the most tax-friendly cantons in Switzerland
Regarding your specific question about the exemption from wealth tax for fortunes under 5 million CHF, the detailed changes do not specify a complete exemption for such fortunes but rather indicate a more favorable tax environment through reduced tax rates and increased allowances. Therefore, while there may not be a blanket exemption for fortunes under 5 million CHF, the tax burden for individuals and couples with assets below this threshold would likely be significantly reduced, especially when considering the doubled allowances and reduced tax rates.

For more precise information or personal tax advice, considering the complexity of tax laws and individual circumstances, consulting with a tax professional or directly with the cantonal tax authorities in Zug would be advisable.
 
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That is also how I read it, and if you have even less you pay nothing i.e. 50 - 100 CHF that's all. Just wanted to get this confirmed. Some users around here screamed up about the wealth tax would kill your fortune in Switzerland.
 
That is also how I read it, and if you have even less you pay nothing i.e. 50 - 100 CHF that's all. Just wanted to get this confirmed. Some users around here screamed up about the wealth tax would kill your fortune in Switzerland.
the wealth tax overall are pretty minimal and rake in about 10k for your 5m.

https://steuern.zg.ch/private/calculator
But they are a privacy disaster.
 
Nahh, I can see you don't even get near 10K CHF for below 5m

Privacy doesn't matter in this case.
 
It's somewhat amusing; I mentioned Zug and specified under 5 million CHF - and now there are posts with all sorts of things outside this scale. By the way, my question was answered in post no. 4 - but please, continue :cool:
 
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It's somewhat amusing; I mentioned Zug and specified under 5 million CHF - and now there are posts with all sorts of things outside this scale. By the way, my question was answered in post no. 4 - but please, continue :cool:
It happens a lot...

I'm in Zug for the business side, but I have a different setup, so I will use someone else's...

I have an acquaintance who brought in CHF 5M into Zug. Assuming you won't be making ANY money from investments and whatnot...here it is:

1709580673340.webp


You can verify this directly with the CH government website: ESTV Steuerrechner
You can also contact them. They answer pretty fast. Just drop in and visit Zug. Stay at the City Garden Hotel on Metallstrasse 20.

Note: The postcode here in Zug is 6300.
 
It's somewhat amusing; I mentioned Zug and specified under 5 million CHF - and now there are posts with all sorts of things outside this scale. By the way, my question was answered in post no. 4 - but please, continue :cool:
Why do you have to comment about people saying that wealth tax kills in Switerland? Don't talk about that then instead of justifying yourself wise guy

I bet you thought that the other cantons has similar tax rates of Zug
 
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Also note that it gets more expensive if you are catholic or protestant. Also you quickly pay a lot if you have real estate worth 25 Mio, namely 244'905 CHF in Geneva. Per year.
same property tax as in the Bahamas :eek:

It happens a lot...

I'm in Zug for the business side, but I have a different setup, so I will use someone else's...

I have an acquaintance who brought in CHF 5M into Zug. Assuming you won't be making ANY money from investments and whatnot...here it is:

View attachment 6375

You can verify this directly with the CH government website: ESTV Steuerrechner
You can also contact them. They answer pretty fast. Just drop in and visit Zug. Stay at the City Garden Hotel on Metallstrasse 20.

Note: The postcode here in Zug is 6300.
Don’t you think Zug is a bit depressing for a full time resident?
 
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That is also how I read it, and if you have even less you pay nothing i.e. 50 - 100 CHF that's all. Just wanted to get this confirmed. Some users around here screamed up about the wealth tax would kill your fortune in Switzerland.
I pay annually 0.05% or 0.5% not sure which as never seem to get a document thanking me just a giro to pay, the accountant set it up years ago.

Not Zug - another canton.

Also I am not a resident - just checked if I were a resident Total tax1’079’002 CHF ‍♂️
 
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Don’t you think Zug is a bit depressing for a full time resident?
You are 100% correct! Zug is DEAD! I like it because distraction is the antithesis of production, but Zug is as dead as it gets. :rolleyes: Maybe, Nidwalden is worse, but that is also a toss-up! stupi#21

This is one of the busiest areas in Zug with the fair/expo going on full blast rof/% - and this was a busy day :p

1709602342762.webp


It suits me (temporarily) because I like being alone with my thoughts but I would NOT recommend it to others as a place to live 100% of the time unless one was condemned to a wheelchair and NOT able to defend oneself. Of course, as with anything with me, I don't "stay" in Zug "a lot". I hang out in Milano & Firenze and cities along the way quite a bit while visiting some of my agnate side of the family. I take the EC 313 and do overnight stops in Bellinzona, Lugano, Paradiso, Chiasso, Lago di Como, and then finally stay in Milano (to dine at ToscaNino) for about a week and another week in Firenze (to get really good food, but do NOT tell the Swiss this ;) they get really sensitive & jealous about their "food" smi(&% ). Also, it is livelier in Ticino and Italy ;)

I take my aging relatives out for dinner to spend quality time with them and let them tell me life and business stories. With few exceptions, we usually order Bistecca alla Fiorentina. Ohhh...and we drink vino rosso like there is NO tomorrow rof/% - Nothing like Italian vino rosso with Bistecca alla Fiorentina :cool:

1709601482241.webp


In summary, if you need people, you like to talk, socialize, or yearn for interaction with people STAY away from Zug. :rolleyes:
If low taxes are your thing or you are a misanthrope, Zug is your place for sure! ;) (or get ready to travel a lot like I do)
 
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I pay annually 0.05% or 0.5% not sure which as never seem to get a document thanking me just a giro to pay, the accountant set it up years ago.
seems like you have made the lump sum tax deal then. Then they dont ask questions just want the dough.
This is the ideal solution for privacy since you dont have to declare every piece of wealth.
Not Zug - another canton.

Also I am not a resident - just checked if I were a resident Total tax1’079’002 CHF ‍♂️
 
seems like you have made the lump sum tax deal then. Then they dont ask questions just want the dough.
This is the ideal solution for privacy since you dont have to declare every piece of wealth.
No, annually my canton taxes me (not Zug), it's called a wealth tax (world wide wealth) - not a citizen, not a resident, but its my home in Europe (having said that - haven't been there since pre-covid).

Running the numbers (networth) came back 1m CHF a year if Resident (wealth tax) - not sure if the calculator mentioned above is correct.
 
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No, annually my canton taxes me (not Zug), it's called a wealth tax (world wide wealth) - not a citizen, not a resident, but its my home in Europe (having said that - haven't been there since pre-covid).
Thats smth ive never heard about, what program is that, or do you mean you have a house there? (for which they charge)

Running the numbers (networth) came back 1m CHF a year if Resident (wealth tax) - not sure if the calculator mentioned above is correct.
yes these are as correct as it gets bc its from the official gov. ;)
 
To do with property - wealth tax based on % of your net worth
Im familiar with this. If you just own property there but don't have residence, you don't have to fill out the wealth and income details.
Just agree your house value in Zug or wherever this is will be taxed in the highest possible bracket which you are in already anyway.
This works since tax is only due on the value of the real estate located in Switzerland but not on your overall wealth/income. (This is only due upon residency).
 
Im familiar with this. If you just own property there but don't have residence, you don't have to fill out the wealth and income details.
Just agree your house value in Zug or wherever this is will be taxed in the highest possible bracket which you are in already anyway.
This works since tax is only due on the value of the real estate located in Switzerland but not on your overall wealth/income. (This is only due upon residency).
Not sure - when it was done the accountant / lawyer added a value, I didn’t dispute it - every year they charge that - at the time it was done on a “net worth of x”.

Should also add property has risen 125% since
 
Let's say you only have 300,000 - 500,000 euros in gold, crypto, or even cash. Then the wealth tax is practically nothing. It probably only starts to matter when you exceed those 5 million CHF - at least that's how I read it and have calculated.
 
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