Wealth tax in the canton of Glarus is levied on the taxpayer’s net assets as at 31 December. The cantonal Steuergesetz (StG) and the Kantonsblatt for natural persons summarise how the different asset classes must be valued for Vermögenssteuer purposes (Arts. 37–46 StG, especially Art. 38–44 StG: “Bewertung des Vermögens”).:contentReference[oaicite:0]{index=0}

According to the Kantonsblatt, assets are generally valued at fair market value (Verkehrswert), while insurance, securities and real estate may follow special valuation rules. Business assets are valued at the same values used for income tax.:contentReference[oaicite:1]{index=1}

1. General Valuation Principle (Art. 38–44 StG)

The Glarus Kantonsblatt states that, under the Swiss Tax Harmonisation Act (StHG) and cantonal tax law, assets (Aktiven) are generally valued at fair market value. For certain categories:

• Insurance, securities and real estate may be valued using specific methods deviating from pure market value.
• Business assets of the taxpayer are valued at the value relevant for income tax (tax balance sheet value).:contentReference[oaicite:3]{index=3}

2. Real Estate & Agricultural Property

Real estate plays a central role in the Glarus wealth tax base. The general framework is:

• Real estate is, in principle, valued at an official value determined under the Verordnung über die Bewertung der Grundstücke (VBG), which implements the legal criteria for property valuation in the canton.:contentReference[oaicite:4]{index=4}
• The official value reflects a structured assessment of land and building components, taking into account use, location, building type and other factors.

2.1 Agricultural property (Art. 39–42 StG)

The Kantonsblatt highlights specific rules for agricultural land:​:contentReference[oaicite:5]{index=5}

• Agricultural properties that fall under the federal bäuerliches Bodenrecht and are predominantly used for agricultural or forestry purposes are valued at their income value (Ertragswert) (Art. 39 StG).
• If such a property is sold or ceases to be used for agricultural/forestry purposes, Glarus levies a supplementary wealth tax (ergänzende Vermögenssteuer, Arts. 40–42 StG). The supplementary tax is calculated on the difference between the mean of the income values and the mean of the official values over the relevant period, for up to 20 years.:contentReference[oaicite:6]{index=6}

3. Business Assets & Patents

According to the Kantonsblatt, business assets are valued at the same value that is decisive for income tax:​:contentReference[oaicite:7]{index=7}

• Movable business assets and intangibles are taken at their tax balance sheet value (after tax-accepted depreciation and provisions).
• Hidden reserves can remain embedded in business assets as long as the tax balance sheet is accepted by the tax authorities.

Glarus also provides for a specific relief on business wealth tied to patents and comparable rights:

• Under Art. 38(2a) StG, the taxable wealth is reduced in proportion to patents and comparable rights (Art. 63a StG) relative to total business assets.:contentReference[oaicite:8]{index=8}
• This effectively means that a portion of business wealth linked to qualifying IP can benefit from wealth tax relief, consistent with the Glarus “patent box” regime.

4. Securities & Receivables

While the Kantonsblatt does not list each detail for securities, it states that assets are generally valued at fair market value, and that special valuation rules exist for securities.:contentReference[oaicite:9]{index=9} In practice, Glarus follows the standard Swiss approach:

• Listed securities: Shares, funds and bonds are valued at their 31 December market price, normally using the Federal Tax Administration (FTA) year-end price list.
• Unlisted securities: are valued under the Swiss Tax Conference KS 28 guidelines for securities without a market price, using a practitioner method that combines net asset value and earnings value.
• Receivables: are valued at nominal value; for disputed or clearly doubtful receivables, the probability of loss can justify a lower value when properly documented.

5. Life & Annuity Insurance

The Kantonsblatt explicitly includes rückkaufsfähige Lebens- und Rentenversicherungen in the object of wealth tax:​:contentReference[oaicite:10]{index=10}

• Life insurance and refundable annuity contracts are part of taxable wealth, typically valued at their surrender value (Rückkaufswert) at 31 December.
• Pure risk life insurance without surrender value is generally not treated as wealth for tax purposes.
• Second pillar and tied third pillar (3a) pension assets remain exempt from wealth tax until payout.

6. Other Movable Assets & Tax-Free Items

For all other assets, the general rule of valuation at fair market value applies, unless a specific exemption or rule is provided:

• Cash and bank deposits: valued at their nominal CHF value as at 31 December.
• Precious metals: valued at bullion market prices at year-end.
• Art & collectibles: valued at realistic fair value; professional appraisals are advisable for high-value holdings.
• Motor vehicles, boats, aircraft: valued at second-hand market value based on standard price guides or dealer quotes.
• Cryptoassets: not yet specifically regulated in Glarus law, but typically treated like financial assets and valued using year-end exchange rates or FTA crypto reference lists.

As in other cantons, basic household goods and personal items are not systematically valued as part of taxable wealth; they are treated as part of the normal living environment rather than as individual investment assets.

7. Foreign Assets & Exchange Rates

Glarus residents are wealth-taxed on their worldwide net assets. Foreign assets must therefore also be valued:

• Foreign financial assets (accounts, portfolios, loans) are valued at their local year-end market or nominal value and then converted into CHF using official year-end exchange rates, typically the FTA list.
• Foreign real estate is valued according to local value determination (market and income value), then converted into CHF for Glarus wealth tax and inter-cantonal allocation.
• The Kantonsblatt clarifies that assets are generally valued at fair market value, and this principle applies equally to foreign assets.:contentReference[oaicite:11]{index=11}

8. Liabilities & Net Wealth Determination (Art. 44–45 StG)

The Kantonsblatt explains that gross wealth minus debts equals net wealth, and that further allowances and social deductions then yield taxable wealth (Art. 44–45 StG).:contentReference[oaicite:12]{index=12} Standard Swiss practice applies:

• Mortgages and other loans for which the taxpayer is personally liable are deductible at their nominal value as at 31 December.
• Joint debts and guarantees are deductible only to the extent the taxpayer must economically bear them.
• Foreign-currency debts are converted at the same year-end exchange rates that apply to foreign assets in that currency.

9. Timing & Measurement of Wealth

Glarus uses the calendar year as the tax period, and the Kantonsblatt states that wealth tax is assessed on the wealth at the end of the tax period (normally 31 December).:contentReference[oaicite:13]{index=13}

• The relevant valuation date for all assets and debts is 31 December of the tax year.
• For economic ties without residence (wirtschaftliche Zugehörigkeit), the Steuergesetz provides that the wealth tax base is prorated according to the period of attachment where the tax liability only exists for part of the year.:contentReference[oaicite:14]{index=14}
• Business assets follow the closing balance sheet of the business year that falls into the tax period, consistent with income tax rules.

10. Planning Takeaways

• Agricultural property: The use of income value for agricultural land and the supplementary wealth tax on change of use make long-term land-use planning crucial.
• Business & IP: Because business assets are linked to income-tax values and Glarus offers relief for IP-related business assets, accounting and IP structuring decisions can significantly affect wealth tax exposure.
• Securities & private companies: Applying KS 28 valuations consistently across shareholders reduces the risk of disputes and unexpected reassessments.
• Foreign assets: Align Glarus valuations with foreign reporting (e.g. for US, German or other tax returns) and keep clear FX documentation to manage double-tax and disclosure issues.
• Allowances: Combine precise valuation with Glarus wealth tax allowances (CHF 77,300 / 154,600 plus child and IV relief) and the flat 3‰ rate to model the effective burden using the Wealth Tax Calculator.