Zug - Little supply, big impact: foreclosures in a tax haven
July 11, 2025
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.
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.
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.”
3 | Demand drivers in the "Crypto Valley"
The strong economic structure ensures that even auction objects are quickly liquidatable after the auction:
- Tax residence magnet: More than 32,000 companies have settled in Zug, from commodity traders to FinTech startups.
- High-margin rents: Median net rent 21 CHF / m² (compared to 18 CHF nationally), vacancy < 0.4 %.
- International school & lifestyle: Demand for furnished 3- to 4-room apartments remains high, especially among expat families.
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 %.
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.
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.
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.
