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Old 30.05.2010, 12:43
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Property/Wealth tax in canton Zug

I am considering buying an apartment in Canton Zug, as it looks like I will be staying for several years or more. It seemed initially much cheaper to buy than rent -- but one issue I cannot clarify is how the property or wealth tax is caculated. In Zug it seems to be simply the market value of the property, but is there any allowance for mortgage etc? If not, then the extra almost 1% of gross property value to pay each year makes buying much less appealing. Can anyone help clarify this?
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Old 30.05.2010, 12:46
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Re: Property/Wealth tax in canton Zug

The taxable amount for wealth taxes is the value of the property value less any outstanding mortgage.

The deemed rental value is calculated using the purchase price plus any renovations that improve it.
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Old 30.05.2010, 12:51
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Re: Property/Wealth tax in canton Zug

Wow that was fast! Thanks MarieZug. Could I ask if you know of any official information on this somewhere on line? In German or English would be fine.
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Old 30.05.2010, 12:54
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Re: Property/Wealth tax in canton Zug

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Wow that was fast! Thanks MarieZug. Could I ask if you know of any official information on this somewhere on line? In German or English would be fine.
You can find all the tax information for Zug here: http://www.zug.ch/private/staat-und-recht/steuern

You can look at a tax declaration or download eTax and see how the Eigenmietwert and wealth taxes are calculated.
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Old 30.05.2010, 13:07
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Re: Property/Wealth tax in canton Zug

Thanks MarieZug, that is really great and much appreciated -- I knew it must be well hidden somewhere there. I will dowload the software as I will need it in any case in the future. Once I figure out how to thank someone formally on the system I will do that too!
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Old 30.05.2010, 13:12
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Re: Property/Wealth tax in canton Zug

Please not the the wealth tax is per mille NOT per cent. Searching will find othe thread on thsi subject...
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Old 30.05.2010, 13:49
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Re: Property/Wealth tax in canton Zug

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In Zug it seems to be simply the market value of the property, but is there any allowance for mortgage etc? If not, then the extra almost 1% of gross property value to pay each year makes buying much less appealing. Can anyone help clarify this?
You will be paying wealth taxes on money sitting in the bank anyway. Getting a mortgage will offset some of your assets and will actually reduce your taxable wealth.

The deemed rental values make buying much less appealing. This amount is around the same as my part-time income and i'll be paying taxes on it forever (unless they get around to changing the law).

Maintenance is the biggest unexpected expense for us. As son as our house was 10+ years old all the appliances (well the fridge, powered shower, cooktop, dishwasher, washing machine, electric blinds) started breaking.
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Old 30.05.2010, 14:11
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Re: Property/Wealth tax in canton Zug

Thanks Marie. I have read a few times on the forum that the deemed rental values are generally less than the actual rent, and also are adjusted for mortgage payments, so it should still work out to be favorable (tho only relative to paying rent rather to what I am ued to.. actually owning your own home and not having to pay the govt for the privilige.

Agree on shocking cost of maintentance (and insurance) though these are also built into the rent premium too, i guess, if you are a renter.
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Old 30.05.2010, 14:29
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Re: Property/Wealth tax in canton Zug

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Please not the the wealth tax is per mille NOT per cent. Searching will find othe thread on thsi subject...
Thanks very much -this does indeed seem to be the case in Zug too. Strange it is quoted as % almost everywhere.
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