Wealth tax in the Canton of Neuchâtel (impôt sur la fortune) is levied on the taxpayer’s net assets as at 31 December. The cantonal tax administration states that wealth tax is calculated on the totality of movable and immovable property owned at the end of the tax period or at the end of Neuchâtel tax liability.

Neuchâtel applies the general Swiss principle of fair market value, but for real estate it relies on the official cadastral (fiscal) estimation. For securities and unlisted participations the canton follows federal and Swiss Tax Conference (SSK) valuation guidance, ensuring consistency with other cantons.

1. General Valuation Principle

In line with Swiss harmonisation rules, Neuchâtel taxes wealth based on:

• Worldwide net assets for Neuchâtel residents, subject to allocation and treaty rules.
• Market value as at 31 December for most assets, unless a specific rule (e.g. cadastral value) applies.
• For business assets, values are aligned with the tax balance sheet used for income tax purposes.

2. Real Estate (Cadastral / Fiscal Estimation)

For Neuchâtel wealth tax, real estate in private wealth is valued using the official cadastral (fiscal) estimation determined by the cantonal tax authority:

• The value to be declared for private wealth tax is equal to the cadastral estimation as at 31 December of the tax year.
• The cadastral estimation is a reference value also used to compute the deemed rental value and certain other property taxes; it is updated following construction, renovation, change of use or on request.
• If, when completing the tax return, the cadastral estimation is not yet available, the taxpayer may temporarily declare 70% of the purchase price or total investment cost in place of the fiscal value. Once the final cadastral estimation is issued, the tax authority adjusts the assessment accordingly.
• Separate technical instructions exist for non-agricultural buildings and land (REI) and for rural / agricultural property (REIAgr), but for private wealth tax the result is still a single cadastral value per property.

For properties outside Neuchâtel:

• Swiss property in other cantons: declare the local tax value (valeur fiscale / Steuerwert) as defined by that canton.
• Foreign property: declare the local market value or equivalent official value, then convert to CHF (see Foreign Assets).

3. Listed Securities

Neuchâtel follows the standard Swiss approach for listed securities:

• Shares, bonds, ETFs and funds quoted on an exchange are valued at their 31 December market price.
• In practice, the tax authorities expect the use of the Federal Tax Administration (FTA) year-end price list for many Swiss and foreign securities to ensure consistent valuation.
• If a security is not in the FTA list, use the closing price on a recognised exchange at year-end or a reasonable average of recent prices where liquidity is limited.
• Accrued interest on bonds is usually embedded in the quoted price; separate adjustments are rarely needed for private investors.
• Attach or retain year-end portfolio statements showing ISINs/tickers, quantities and total CHF values.

4. Unlisted Shares & Private Companies

For participations in private companies and other unlisted securities, Neuchâtel aligns with the Swiss Tax Conference (SSK) guidance (KS 28) used across Switzerland:

• Where the canton of residence of the company has already set an official tax value per share, that value should be used by all Neuchâtel-resident shareholders.
• If no official value exists, unlisted shares are generally valued using the practitioner method, combining:
  • Net asset value (NAV): book equity adjusted for hidden reserves and off-balance-sheet items.
  • Earnings value: average sustainable profit capitalised with a suitable factor reflecting risk and sector.
• The taxable value is often a weighted average (for example 1/3 NAV and 2/3 earnings value), unless the company’s specific circumstances justify a different weighting.

In terms of documentation, Neuchâtel typically expects:

• Financial statements for the last 2–3 business years.
• Explanations of any exceptional or non-recurring items affecting profits or equity.
• Consistent valuations across all shareholders and tax years.

5. Business Assets & Self-Employment

For sole proprietors and partners, business assets (fortune commerciale) are generally valued based on the values used for income tax:

• Movable business assets (machinery, inventory, operating vehicles) are taken at their tax balance sheet value after tax-accepted depreciation and provisions.
• Intangible assets such as goodwill or patents follow the tax accounts where capitalised; self-created goodwill is usually only considered if expressly recognised.
• Hidden reserves formed via accepted depreciation or provisions remain embedded and are not automatically added back for wealth tax, as long as the accounts are accepted by the tax administration.
• Business real estate is reflected at its tax balance sheet value, but in the background this must remain broadly consistent with the cadastral and market-based valuation framework.

6. Life & Annuity Insurance

Neuchâtel follows standard Swiss practice for life and annuity insurance:

• Life insurance policies and refundable annuity contracts with a savings component are included in taxable wealth at their surrender value (valeur de rachat) at 31 December.
• Pure risk insurance policies without a surrender value are not considered part of taxable wealth.
• Occupational pension assets (pillar 2) and tied retirement savings (pillar 3a) remain exempt from wealth tax until payout.

7. Other Assets

Any assets not covered above must still be declared at their fair market value as at 31 December:

• Cryptoassets: Value using 31 December prices from a recognised exchange or the FTA’s crypto reference list and convert into CHF if quoted in foreign currency.
• Precious metals: Use bullion market prices at year-end for standard bars and coins.
• Art & collectibles: Use realistic market values; for significant collections the tax administration may expect appraisals or current insurance valuations.
• Motor vehicles, boats and similar assets: Use second-hand market values based on price guides or dealer quotations.
• Cash, bank deposits and receivables: Use nominal balances; for clearly doubtful receivables a lower value can be justified if the risk of loss is documented.
• Ordinary household goods and personal effects are generally considered part of the normal living environment, not individually valued for wealth tax.

8. Foreign Assets & Exchange Rates

Neuchâtel residents are wealth-taxed on their worldwide net wealth. Foreign assets therefore need to be included in the Neuchâtel tax return:

• Foreign bank accounts and portfolios: Value at local year-end market or nominal value and convert into CHF using the official 31 December exchange rates (typically the FTA FX list).
• Foreign real estate: Use local market value or official tax value as accepted by the Neuchâtel tax administration, then convert to CHF. These values are used both for wealth tax and for inter-cantonal or international allocation purposes.
• Foreign life insurance and pensions: Apply the same principles as for Swiss insurance; wealth-tax exemption of foreign occupational pensions depends on Swiss tax treatment, not foreign law labels.
• Retain original foreign statements and valuations plus evidence of FX rates used, in case the tax office requests clarification or documentation.

9. Liabilities (Debt Deduction)

Neuchâtel taxes net wealth, so debts are deducted from total assets to arrive at the taxable base:

• Mortgages on real estate are deductible at their nominal balance at 31 December, whether the property is in Neuchâtel, another canton or abroad.
• Personal loans, bank overdrafts and credit card balances are also deductible if they represent genuine, enforceable obligations.
• For joint debts or guarantees, only the portion economically borne by the taxpayer should be deducted.
• Debts denominated in foreign currency must be converted into CHF using the same year-end exchange rates used for assets in that currency.

After subtracting liabilities, Neuchâtel applies its personal allowances and progressive wealth tax scale (starting around CHF 50,000 of net wealth and rising to a maximum rate in the 3–4‰ range) to determine the final cantonal and communal wealth tax.

10. Documentation & Verification

• Cadastral extracts for each Neuchâtel property, showing the official cadastral value as at 31 December.
• Purchase agreements, renovation invoices and, where relevant, correspondence regarding cadastral revisions or expert valuations.
• Year-end bank and portfolio statements listing positions, market values and total CHF value.
• Insurance certificates showing the surrender value for life and annuity contracts.
• Financial statements and valuation notes for significant unlisted participations or business assets held privately.
• Evidence of foreign asset values and exchange rates used (FTA FX list printouts or bank confirmations).

11. Planning Takeaways

• Real estate focus: In Neuchâtel, the cadastral value directly sets the wealth tax base for property. Understanding and, where appropriate, challenging or updating this value can materially affect the annual bill.
• Debt allocation: Because wealth tax is levied on net wealth, allocating mortgages and other loans efficiently across properties and cantons can optimise the taxable base.
• Private companies & business assets: KS 28 valuations and the link to the tax balance sheet mean that accounting policy, profit smoothing and reserve management affect both income and wealth tax.
• Cross-border investors: Consistent use of FTA price and FX lists simplifies coordination between Neuchâtel returns and foreign filings and supports double-tax relief claims.
• Modelling impact: Combine accurate valuation and debt data with Neuchâtel’s allowances and progressive rates using the Wealth Tax Calculator to anticipate effective wealth tax exposure under different scenarios.