The Executive Summary:
| Feature | Canton of Zug (City of Zug) | Canton of Geneva (City of Geneva) |
| Headline Wealth Tax Rate | ~ 0.22% – 0.25% | ~ 1.0% |
| Estimated Annual Bill | ~ CHF 22,000 – 25,000 | ~ CHF 100,000 |
| The “Safety Valve” | None needed (rate is low) | The “Tax Shield” (Bouclier Fiscal) |
The “Hidden” Nuance: Geneva’s Tax Shield
If you look at the table above, Zug seems like the obvious winner. However, Geneva has a special mechanism called the Bouclier Fiscal (Tax Shield) that prevents taxes from eating up your capital.
- The Rule: Geneva caps your Total Taxes (Wealth Tax + Income Tax) at roughly 60% of your Net Taxable Income.
- The Trap: If you have high income (e.g., CHF 500k+ salary), the shield does not help you. You will pay the full ~CHF 100k wealth tax.
- The Opportunity (Low Income): If you are a retired investor with low taxable income (living off capital gains, which are tax-free), Geneva imputes a “deemed income” on your wealth (usually 1%).
- Calculation: 1% of 10M = CHF 100,000 deemed income.
- Cap: Tax is capped at 60% of that CHF 100,000.
- Result: Your bill drops from ~CHF 100k to ~CHF 60,000.
Scenario Analysis: Who wins?
Scenario A: The Active Entrepreneur
You earn CHF 300,000/year in salary + have CHF 10M in assets.
- Zug: You pay low income tax + ~CHF 25k wealth tax. (Winner)
- Geneva: You pay high income tax + full ~CHF 100k wealth tax. The “Shield” doesn’t trigger because your income is too high.
Scenario B: The Passive Investor
You have CHF 0 salary. You live off stock sales (tax-free capital gains).
- Zug: You pay ~CHF 25k total. (Winner)
- Geneva: You pay ~CHF 60k total (capped by the Shield).
- Verdict: Zug is still ~CHF 35k/year cheaper, but Geneva becomes “affordable” rather than “confiscatory.”
💡 Recommendation
If your primary goal is purely financial efficiency, Zug (or Schwyz/Nidwalden) remains the undisputed champion for a CHF 10M portfolio, saving you roughly CHF 35,000 to CHF 75,000 annually compared to Geneva.
However, if you prefer the lifestyle of the French-speaking region, the “Tax Shield” makes Geneva viable—provided you structure your income correctly to stay “low yield” for tax purposes.