Moving from canton of Zurich to Zug after living 9 years in Zurich

Hello,

I have lived and worked for the past 9 years in Zurich at a high paying job (~200,000 CHF/yr). I want to move to Zug starting next year while continuing to work at my current job in Zurich. Do you know what happens with taxes?

Apparently the length of stay matters for changing tax residency, not just your home’s address. Is it likely Zurich would refuse to let me move my tax residence?

Do you have a C Permit?

You are taxed where you are resident, so if you live in Zug, you’ll be taxed in Zug.

The only thing to watch out for is when you only pretend to move but don’t really move and your center of life remains in Zurich e.g. if you leave family home there and just have a flat in Zug, go back every weekend etc. etc.

B permit, never upgraded it.

Are you EU or non-EU?

If EU - then just move. Problem solved.
If non-EU, things are more complicated as your canton of residence issues the work permit, so it’s easier to just get a C-permit (if you can). Otherwise you need to ask permission to move canton.

From what i was told, if you move within a calendar year, you pay taxes for that calendar year on your last residence kanton (not the new kanton where you moved to)

My understanding is you always pay taxes on where you are living on Dec 31st. But I don’t want to push my luck so I will just move on February next year. I will take over a contract starting February.

the cantons sort that out amongst themselves.
And doesn’t B pay tax from source (unless married) anyway?

Correct (unless taxed at source, which is precluded by your income amount).
The split between old and new canton&municipality happens behind the scenes and is none of your worries.

You could probably take up some interim housing in Zug until February to save on the taxes for this year. Provided you’re not restricted, as mentioned above.

There’s a lot of “unless” :slight_smile:

If you earn more than 120k, then no.
If you own property (CH or abroad), then no.
etc…

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It is still deducted from your salary with a B permit so inform your employer and they should adapt the rate.

If you don’t have permit issues, nothing stopping you to move.
If you move near the end of the year, Zurich might want to have a word about your tax for that year - happened to a colleague when she moved from ZH to ZG in November of that year and ending up paying Zurich taxes.

If you move in Feb and you actually live in Zug, should not be an issue. Hope the tax saved covers the rent difference and is worth the extra commute.

Really? I was told (by my employer) that once I hit 120k, that I needed to submit a tax declaration at the end of the year.

Maybe something specific to my employer…

You need to submit a tax declaration but the taxes are still being deducted from your salary.

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A good decision, congrats!

BS, I moved to ZH in December some year, paid ZH taxes for that year, then I left ZH some year in December and didn’t pay a ZH taxes, you pay taxes where you’re registered on 31. Dec.

The thing with ZG is that they’ll review your registration from every angle, so it’s very unlikely to cheat the system, register only for a few weeks to be accounted in ZG. Your rent contract must looks feasible, open-ended if you’re trying to register at the end of the year

And it will take them a few years to check your tax declaration (because it will be a lowest priority for them) and then they will either return you the overpaid amount or demand underpaid amount from you.