Zug - Little supply, big impact: foreclosures in a tax haven

Zug is considered a Swiss synonym for low taxes and top location quality. Those seeking real estate in the open market face intense competition and correspondingly high prices. The auction segment, however, tells a different story: Although the canton shows only a handful of forced auctions (ZVG) over the years, these rare events present the opportunity to secure premium locations at a double-digit discount, right in the middle of the economically strongest region between ZH, LU, and BS.

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1 | Micro-market with macroscopic leverage

Year	ZVG Zug (units)	Share of Switzerland	Notes
2021	0	0 %	Pandemic catch-up year, Zug remained empty.
2022	1	0.2 %	Single auction in Oberägeri.
2023	3	0.5 %	Rank 19 of 24 cantons by number of units.
2024	≈ 14*	2.3 %	Significant increase, Zug moves into the "Top 15".

*Estimate based on the bar graph "Forced Auctions 2024 by Canton".

What might seem like a footnote translates into an overproportional volume: Even with around 14 auctions, Zug is expected to generate approximately 25 million CHF in market value volume in 2024, which corresponds to 4 % of the Ticino offerings with only 12 % of the number of auctions.

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2 | Price levels, premium from the source, discounts from the hammer

2.1 Condominiums

• Ø market value 2023: 660,000 CHF (Diagram on p. 9).
• First call (≈ 70 %) ≈ 462,000 CHF, realistically affordable for rental or owner-occupier strategies.

2.2 Residential houses

• Ø market value 2023: 1,675,000 CHF (Map on p. 10).
• Auction potential (≈ 15 % discount): 1,420,000 CHF, comparable properties on the free market often exceed 2 million CHF.

“Despite the small number of auctions, Zug ranks among the top 5 of the most expensive cantons for residential houses.”

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3 | Demand drivers in the "Crypto Valley"

The strong economic structure ensures that even auction objects are quickly liquidatable after the auction:

1. Tax residence magnet: More than 32,000 companies have settled in Zug, from commodity traders to FinTech startups.
2. High-margin rents: Median net rent 21 CHF / m² (compared to 18 CHF nationally), vacancy < 0.4 %.
3. International school & lifestyle: Demand for furnished 3- to 4-room apartments remains high, especially among expat families.

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4 | Three proven strategies for Zug auctions

1 | "Fix & Let" in the suburbs

2-room apartment in Baar, market value 670,000 CHF, starting price 469,000 CHF, light renovation (35,000 CHF) and subsequent rental for 2,200 CHF/month → gross yield ≈ 4.8 %.

2 | Luxury flip by Lake Zug

Lakeside villa in Oberägeri, official value 4.2 million CHF. A comparison auction in 2023 ended at 3.3 million CHF (-21 %) with only two competing bidders. Planned division into two condominiums → expected exit 4.9 million CHF.

3 | "Corporate Housing" for crypto startups

Commercial loft near Zug train station, market value 1.2 million CHF, conversion into six micro-serviced apartments, target rent 145 CHF/night → IRR > 12 %.

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5 | Timing & Tactics to Outshine Competition

• Utilize seasonal windows: March, June, and October host the most auctions nationwide, while July has only 19 auctions (Graphic on p. 4 / 2024), making Zug's auctions true bargain candidates during that time.
• Anticipate second calls: If no bids are made in the first round, the 70 % threshold is waived, a rare occurrence, but it already happened in Zug in 2022.
• Bring proof of financing: 10 % cash deposit on auction day, the remainder typically in 20 days, an irrevocable bank guarantee provides psychological leverage.

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6 | Zug vs. Zurich & Vaud, a quick check

	Zug (ZG)	Zurich (ZH)	Vaud (VD)
ZVG 2024 (units)	≈ 14	≈ 27	77
Ø condo 2023 (thousands of CHF)	660	1,793	952
Ø residential house 2023 (thousands of CHF)	1,675	1,984	2,213
Tax rate (individuals)	59 %	119 %	155 %

Zug combines small supply, tax upside, and comparatively moderate entry prices, a rare triple combination.

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Conclusion: Small supply, big impact

The data clearly shows: Even if Zug hardly stands out quantitatively in the ZVG statistics, each individual auction is a high-impact event. High-quality assets meet few competing bidders, the tax location guarantees long-term demand, and the auction usually occurs below market price. For investors looking for a piece of Zug's tax paradise at a "hammer price", the auction floor remains the most efficient way to proceed, as long as one brings an early bird mentality, financial clarity, and a keen eye for auction lists.