In Nidwalden, the wealth tax (Vermögenssteuer) is levied on an individual’s net wealth as at 31 December. The cantonal Steuergesetz and Steuerverordnung specify how assets and liabilities must be valued, while the cantons-wide harmonisation rules require that assets are generally reported at fair market value (Verkehrswert).

For 2025 and later tax years, important updates apply to the official valuation of real estate, as all Nidwalden properties are being revalued and new rules on investment costs and agricultural property come fully into force. Wealth tax remains linear, with a simple rate of 0.25‰ and a reduced 0.2‰ rate for qualifying participations, but the valuation base still matters in absolute terms.

1. General Valuation Principle

Nidwalden follows the federal framework: assets are in principle valued at fair market value. The cantonal practice clarifies:

• As a starting point, all assets (movable, immovable, rights, claims and participations) are valued at their market value at 31 December.
• Exceptions / special rules apply to real estate, securities, insurance contracts and certain business assets, where specific methods or official values are prescribed.
• Business assets belonging to a sole proprietorship or partnership are generally taken at the values used for income tax (tax balance sheet values).

2. Real Estate

Nidwalden provides detailed statutory rules for the valuation of real estate (unbewegliches Vermögen), which are particularly relevant from the 2025 tax period onward.

2.1 Official valuation and fair value

• The fair value of properties is determined by an official valuation carried out by the cantonal tax office as of a reference date.
• This official value (Steuerwert / Güterschatzung) is used for wealth tax and for the cantonal minimal tax on real estate.
• The government defines the detailed valuation rules in a separate ordinance; taxpayers typically rely on the valuation notice issued by the tax office rather than self-computing the value.

2.2 Properties within building zones

• Non-agricultural built property within the building zone is valued using a formula-based method, depending on property category, either on a real value basis or an earnings (yield) value basis.
• Agricultural property within building zones can still be taxed at agricultural earnings value if it is not intended for imminent development and generally exceeds certain minimum area thresholds (e.g. around 2,500 m²).
• Non-agricultural undeveloped land within the building zone is valued on a real value basis, taking into account zoning, location and potential use.
• If, at year-end, value-increasing investments (e.g. renovations, extensions) are not yet reflected in the official valuation, 80% of these costs are added to the existing official value until the next formal reassessment.

2.3 Agricultural property outside building zones

• Land and forest used for agricultural purposes outside the building zone, including necessary buildings, is valued at earnings value (Ertragswert).
• Livestock values follow Swiss Tax Conference (SSK) guidelines and are usually only relevant where agricultural assets form part of the taxpayer’s private wealth.

3. Listed Securities

Nidwalden’s official guidance on the valuation of securities is explicit and closely aligned with the Federal Tax Administration (FTA) approach.

• Exchange-listed shares, bonds, ETFs and funds are generally valued using the closing price on the last trading day in December.
• In practice, the tax value can be taken directly from the bank’s year-end tax statement or from the official FTA securities price list (Steuerkursliste).
• For foreign-currency securities, the conversion into CHF uses the exchange rates and security prices in the FTA list as at 31 December.
• Where a security is listed but not in the FTA list, the year-end exchange price from a recognised exchange is used; if liquidity is thin, a reasonable average of recent prices is acceptable.

For the tax return, Nidwalden expects a complete securities and bank account schedule showing each position, ISIN/ticker, quantity, year-end price and total CHF value.

4. Unlisted Shares & Private Companies

For unlisted participations (shares in private companies, GmbH interests, cooperative shares), Nidwalden refers to the nationwide Swiss Tax Conference (SSK) guidance, KS 28, on valuing non-listed securities.

• Where an official tax value per share has already been set (often by the canton where the company is based), this value should also be used in Nidwalden.
• Otherwise, the valuation follows the practitioner method:
  • Net asset value (NAV): book equity adjusted for hidden reserves and off-balance items.
  • Earnings value: sustainable average profit capitalised with an appropriate factor.
• The taxable value is typically a weighted average of NAV and earnings value (for example, 1/3 NAV and 2/3 earnings value), although variations are possible where justified.
• For participations of at least 10% in a company, Nidwalden offers a reduced wealth tax rate on the corresponding share of wealth (0.2‰ instead of 0.25‰) – but the valuation itself follows the same rules.

In practice, Nidwalden will expect 2–3 years of financial statements, plus a short valuation note explaining assumptions and any exceptional items.

5. Business Assets & Intangibles

For self-employed taxpayers and partners, business assets are valued using the income-tax balance sheet:

• Movable business assets (machinery, inventory, operating vehicles) are taken at their tax book values after tax-accepted depreciation and provisions.
• Intangible assets (e.g. capitalised goodwill, patents, trademarks) follow their tax balance sheet values; self-generated goodwill is normally not recognised separately unless it has been explicitly valued.
• Hidden reserves created through accelerated depreciation or provisions remain embedded and are not automatically added back for wealth tax as long as the accounts are accepted by the tax authorities.
• Business real estate is reflected via its book value, but in the background the valuation must still remain consistent with the official valuation framework described in section 2.

6. Life & Annuity Insurance

Nidwalden’s practice for insurance contracts corresponds to general Swiss rules, but the cantonal Wegleitung makes the treatment explicit:

• Life insurance policies with a savings component are included in taxable wealth at their surrender value (Rückkaufswert) including bonuses at 31 December.
• Refundable annuity insurance contracts are treated in the same way and taxed at their surrender value.
• Pure risk insurance policies without surrender value are not wealth-taxable.
• Occupational pensions (pillar 2) and tied retirement plans (pillar 3a) are exempt from wealth tax until payout, even if annual statements show a vested benefits value.

The insurance company’s annual certificate is the decisive evidence for the values to declare in the Nidwalden wealth tax return.

7. Other Assets

All other assets must be declared at their fair market value as at year-end, even if no specific Nidwalden rule exists:

• Cryptoassets: Use 31 December prices from a recognised exchange or the FTA’s crypto list; convert into CHF using official FX rates if quoted in foreign currency.
• Precious metals (gold, silver, platinum etc.): Use year-end bullion prices; the Wegleitung refers to the official price and currency list for foreign bank notes, coins and bullion.
• Art & collectibles: Use realistic market values; for significant collections, appraisals or up-to-date insurance valuations may be expected.
• Motor vehicles, boats and similar assets: Value at realistic second-hand market value (price guides or dealer quotations).
• Cash, bank deposits and receivables: Use nominal balances; for demonstrably doubtful receivables a lower value may be justified, but supporting documentation should be kept.
• Ordinary household goods and personal effects are normally not valued line-by-line; only unusual concentrations of value (e.g. high-end art, jewellery collections) are explicitly declared.

8. Foreign Assets & Exchange Rates

Nidwalden residents are taxed on their worldwide net wealth, meaning foreign assets also enter the wealth tax calculation:

• Foreign bank accounts and portfolios are declared at local nominal or market value and then converted to CHF using the official 31 December exchange rates (FTA list).
• Foreign real estate is generally valued at its local market value or statutory tax value, converted to CHF. These figures are also relevant for allocation between Switzerland and the foreign state.
• Foreign insurance policies and pensions follow the same principles as Swiss ones: surrender value for savings-type policies, wealth-tax exemption for true occupational pensions and pillar-3a-equivalent arrangements.
• Retain foreign statements and valuation documents in the original currency together with evidence of the FX rates applied, as the Nidwalden tax office may request them in case of queries.

9. Liabilities (Valuation for Deduction)

Nidwalden levies tax on net wealth. Debts can therefore be deducted from gross assets when determining the taxable base:

• Mortgages on real estate (in Switzerland or abroad) are deductible at their nominal balance as at 31 December.
• Bank loans, private loans, overdrafts and credit card balances are also deductible where they represent genuine, legally enforceable obligations.
• Joint obligations and guarantees are only deductible to the extent the taxpayer must economically bear them.
• Debts denominated in foreign currency are converted to CHF using the same 31 December exchange rates used for assets in that currency.

The resulting net wealth is then reduced by Nidwalden’s tax-free allowances (e.g. CHF 70,000 for married couples, CHF 35,000 for singles plus CHF 15,000 per dependent child) before the linear wealth tax of 0.25‰ (or 0.2‰ for qualifying participations) and the relevant cantonal and communal tax multipliers are applied.

10. Documentation & Verification

• Real estate: Official valuation notices/Güterschatzung for each Nidwalden property, plus purchase contracts and renovation invoices for major work not yet reflected in the valuation.
• Securities: Year-end bank and broker statements, including the full Wertschriften- und Guthabenverzeichnis with 31 December values and FTA-based tax prices.
• Business assets: Tax balance sheets and income statements for self-employed and partners.
• Insurance: Annual certificates showing surrender values for life and annuity policies.
• Foreign assets: Account statements, local property valuations and proof of FX rates used.
• Debt: Mortgage statements, loan contracts and bank confirmations of outstanding balances.

11. Planning Takeaways

• Property-driven base: With updated property valuations from 2025 onwards, checking how the new official values compare to market reality is essential, especially where significant renovations or redevelopment potential exist.
• Leveraging participations: Nidwalden’s reduced wealth tax rate for qualifying shareholdings (at least 10%) makes it attractive to hold business interests directly, provided valuations are carefully documented and coordinated.
• Business vs. private wealth: Because business assets follow tax balance sheet values, accounting and structuring decisions (e.g. where to hold real estate, how to manage reserves) directly impact wealth tax.
• Cross-border investors: Consistent use of FTA price and FX lists, together with accurate foreign valuations, simplifies coordination with foreign tax returns and double-tax-relief claims.
• Model the impact: Combine accurate valuation and debt data with Nidwalden’s linear wealth tax and allowances using the Wealth Tax Calculator to forecast the impact of major transactions (real estate, business exits, portfolio shifts).