In Obwalden, the wealth tax (Vermögenssteuer) for individuals is based on the net wealth as at 31 December. The Steuergesetz (StG) and Vollziehungsverordnung (StV) define how assets and liabilities are valued (Art. 43–55 StG; Art. 21–24 StV). The Kantonsblatt Obwalden for natural persons summarises these provisions under “Bewertung des Vermögens”.

According to the Kantonsblatt, assets (Aktiven) are generally valued at fair market value (Verkehrswert). For insurance, securities and real estate, specific valuation methods may apply, and business assets are valued at the amounts used for income tax.

1. General Valuation Principle

The Kantonsblatt Obwalden summarises Art. 44–52 StG and Art. 21–24 StV as follows:

• General rule: Assets are in principle valued at fair market value. The federal Steuerharmonisierungsgesetz (StHG) and Obwalden law require valuation at Verkehrswert.
• Special rules: For insurance, securities and real estate specific valuation methods can apply that deviate from pure market value.
• Business assets: For the taxpayer’s business (Geschäftsvermögen), assets are valued at the value relevant for income tax, i.e. tax balance sheet values (Art. 44–48 StG).

2. Real Estate

Real estate (Grundstücke) is treated as a central “cantonal particularity” in Obwalden’s Kantonsblatt. Wealth tax uses the Steuerwert determined under Art. 45–47 StG, which must not exceed market value.

2.1 Tax value and net tax value

• Under Art. 44(2) StG, real estate is valued at its tax value (Steuerwert), determined in accordance with Art. 45–47 StG, and the tax value may not exceed the market value.
• The net tax value (Netto-Steuerwert) for non-agricultural property is defined in Art. 46 StG and Art. 23(2) StV. From the 2025 tax period, Obwalden sets the net tax value of non-agricultural property at 60% of the tax value.
• This 60% net tax value is used both to determine the taxable wealth from property and the minimum property tax (Art. 46 StG; Art. 23 StV; Kantonsblatt Obwalden).

2.2 Non-agricultural property

• Art. 45 StG provides that, for non-agricultural property, the tax value is based on either a real value (Realwert) or an earnings value (Ertragswert) determined by the tax administration.
• The government issues implementing rules to ensure consistent valuation; a formula-based method can be used, provided that key quality characteristics (location, use, condition) are appropriately reflected.
• The valuation formula must be chosen such that, at the upper end of the valuation band, tax values do not exceed 90% of actual market value.
• If the tax value does not reflect the actual circumstances, an individual valuation may be carried out under recognised property valuation principles (Art. 45(3) StG).

2.3 Real value and earnings value (Art. 21–22 StV)

• Under Art. 21 StV, the earnings value corresponds to the capitalised rental or lease value of the property at a rate that covers both a reasonable return on invested capital and operating costs. Imputed rental use by the owner is included.
• Art. 22 StV defines the real value as the sum of:
  • Land value: value of comparable land in the same area that can reasonably be expected over time.
  • Building value: new-build value minus age-related depreciation (Zeitbauwert).
• All valuation figures (earnings value, real value, market value, tax value) are set in accordance with the cantonal Schätzungs- und Grundpfandgesetz and its implementing ordinance.

2.4 Agricultural property

• Art. 47 StG governs agricultural and forestry property. Land and forests used for agriculture or forestry, including necessary buildings, are valued primarily based on earnings value.
• Properties acquired or obviously held for investment purposes are treated as non-agricultural and taxed accordingly, even if they have an agricultural character.
• Agricultural property within building zones is treated like non-agricultural property and valued under the standard property rules (Art. 47(3)–(4) StG).

3. Listed Securities

While the Kantonsblatt notes only that securities can have “other valuations”, Obwalden in practice follows the standard Swiss method for listed securities:

• Exchange-listed shares, bonds, ETFs and funds are valued at the 31 December market price.
• Taxpayers typically rely on the Federal Tax Administration (FTA) year-end price list (Steuerkursliste) or on the tax values reported in bank year-end statements.
• For foreign-currency securities, conversion into CHF uses the official year-end FX rates from the FTA list.
• Where 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 thin.

4. Unlisted Shares & Private Companies

For unlisted participations (non-listed shares, GmbH interests, cooperative shares), Obwalden aligns with the Swiss Tax Conference (SSK) Circular KS 28 on the valuation of securities without a market price:

• If another canton (typically the company’s seat) has set an official tax value per share, this value is normally adopted for Obwalden taxpayers as well.
• Otherwise, the practitioner method is applied:
  • Net asset value (NAV): book equity adjusted for hidden reserves and off-balance items.
  • Earnings value: average sustainable profit capitalised with an appropriate factor based on industry and risk.
• The wealth tax value is usually a weighted average of NAV and earnings value (commonly 1/3 NAV and 2/3 earnings value), unless specific circumstances justify a different weighting.

In practice, Obwalden will expect:

• 2–3 years of financial statements (balance sheet, income statement, notes).
• A short valuation memo explaining normalisation adjustments and chosen capitalisation factors.
• Consistency of the valuation across all shareholders and across tax years.

5. Business Assets & Agricultural Movables

Art. 48 StG and the Kantonsblatt specify how business assets are handled:

• Movable business assets and intangible assets belonging to a business are valued at the income-tax balance sheet value, i.e. after tax-accepted depreciation and provisions.
• Existing hidden reserves remain embedded and are not automatically uplifted for wealth tax as long as the accounts are accepted by the tax authorities.
• Business real estate follows the tax balance sheet, but the underlying tax value must still be compatible with the property valuation framework under Art. 45–47 StG.
• For agriculture, self-produced feed stocks for the taxpayer’s own livestock are expressly exempt from wealth tax (Art. 48(3) StG; Kantonsblatt Obwalden).

6. Life & Annuity Insurance

The Kantonsblatt lists rückkaufsfähige Lebens- und Rentenversicherungen as part of the wealth tax object (Art. 43 StG). In line with Swiss practice:

• Life insurance policies and refundable annuity contracts are included at their surrender value (Rückkaufswert) as at 31 December, including any bonuses.
• Pure risk insurance without a surrender value is not wealth-taxable.
• Occupational pension assets (pillar 2) and tied retirement savings (pillar 3a) remain exempt from wealth tax until payout, even if vested benefits are shown on statements.

7. Other Movable Assets

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

• Cash and bank deposits: nominal CHF balances at year-end.
• Receivables: nominal value; for clearly doubtful receivables, a lower value can be justified if the loss risk is documented.
• Cryptoassets: valued at 31 December using prices from a recognised exchange or the FTA’s crypto list, converted to CHF where necessary.
• Precious metals: bullion and investment coins valued using year-end market prices.
• Art, jewellery and collectibles: realistic market value; for substantial collections, appraisals or insurance valuations may be expected.
• Motor vehicles, boats, aircraft: second-hand market value based on price guides or dealer estimates.
• Ordinary household goods and personal effects are generally not valued item by item; only unusual concentrations of value need to be reported.

8. Foreign Assets & Exchange Rates

Obwalden residents are wealth-taxed on their worldwide net wealth. Foreign assets therefore enter the Obwalden wealth tax base, subject to allocation rules:

• Foreign bank accounts and portfolios: value at local year-end nominal or market value and convert into CHF using the official 31 December FX rates (FTA list).
• Foreign real estate: value based on local market value or official tax value accepted by the Obwalden tax administration, then convert to CHF. These values matter both for wealth tax and for allocating tax rights between Switzerland and the foreign country.
• Foreign life insurance and pensions: apply the same principles as for Swiss policies; savings components are taxable at surrender value, while occupational pension assets are exempt until payout.
• Retain all foreign documentation in the original currency along with proof of FX rates used, in case the Obwalden tax office requests clarification.

9. Liabilities (Debt Deduction)

Obwalden levies tax on net wealth. The Kantonsblatt summarises Art. 53–55 StG as: gross wealth minus debts equals net wealth; net wealth minus allowances equals taxable wealth.

• Mortgages on Swiss and foreign real estate are deductible at their nominal balance as at 31 December.
• Bank loans, private loans, overdrafts and credit card balances are deductible where they represent genuine, enforceable obligations.
• Joint debts, guarantees or similar obligations are deductible only to the extent the taxpayer must economically bear them.
• Foreign-currency debts are converted into CHF using the same year-end exchange rates applied to foreign assets.

The resulting net wealth is then reduced by Obwalden’s personal allowances (Art. 54 StG) and taxed at the flat wealth tax rate of 0.2‰ (Art. 55 StG), subject to the cantonal and communal multipliers and the separate minimum property tax on real estate (Art. 56 StG).

10. Planning Takeaways

• Real estate and 60% net tax value: Because non-agricultural property enters wealth tax at 60% of its tax value, understanding and, where appropriate, challenging or updating the underlying tax value is crucial in Obwalden.
• Agricultural vs. investment use: The distinction between genuine agricultural property and property held for investment can materially affect wealth tax, as the latter is treated like non-agricultural property.
• Business assets: Since business assets follow the income-tax balance sheet, accounting policy (depreciation, reserves, location of real estate) directly influences the wealth tax base.
• Private companies: KS 28-based valuations and consistent application across shareholders and years are key to avoiding disputes and unwelcome revaluations.
• Modelling the impact: Use the Wealth Tax Calculator together with Obwalden’s allowances and the 0.2‰ rate to test scenarios (property purchases, restructurings, business exits).