In the canton of Schaffhausen, wealth tax (Vermögenssteuer) is levied on an individual’s net wealth as at 31 December. The cantonal tax law (Steuergesetz) and the Schaffhausen Kantonsblatt for natural persons set out how assets and liabilities are valued (Art. 43–45 StG; § 31 StV, section “Bewertung des Vermögens”).

In line with federal harmonisation rules, assets are generally valued at fair market value (Verkehrswert), while special methods exist for life/annuity insurance, securities, real estate and business assets. Net wealth is then reduced by cantonal social allowances (currently CHF 100,000 for married couples and CHF 50,000 for other taxpayers) before applying the progressive wealth tax scale.

1. General Valuation Principle

The Schaffhausen Kantonsblatt summarises the cantonal rules for valuation of wealth as follows:

• General rule: All assets (Aktiven) are in principle valued at fair market value. This corresponds to the price that could be achieved on an open market between independent parties.
• Exceptions / special methods apply to insurance, securities and real estate, where cantonal practice prescribes specific valuation criteria or official values.
• Business assets of the taxpayer (sole proprietorship/partnership) are valued at the same values used for income tax, i.e. tax balance sheet values.

2. Real Estate (Art. 45 StG)

Real estate (unbewegliches Vermögen) is one of Schaffhausen’s “cantonal particularities” in the Kantonsblatt. The law defines a specific tax value (Steuerwert) based on both market and income criteria:

• The tax value of a property is calculated with fair consideration of both market value and earnings value.
• Market value is defined as the typical price that could be obtained on the open property market, taking supply and demand into account.
• The cantonal government issues detailed rules for property valuation; these govern the treatment of land value, building value and income from rental or lease.
• The tax value must remain within a reasonable range of market value; in practice the official assessment (amtliche Schätzung) is decisive for wealth tax declarations.

2.1 Agricultural and forestry property

The law distinguishes agricultural/forestry property from other real estate:

• Land and forests that are used for agricultural or forestry purposes are valued based on earnings value (Ertragswert).
• Agricultural use is deemed to exist where land is subject to the federal bäuerliches Bodenrecht and is predominantly farmed; similarly for forestry use where the land is subject to forest police rules and predominantly used for forestry.
• Agricultural property that is acquired or held primarily for investment or speculative purposes may be treated as non-agricultural and valued accordingly.

3. Listed Securities

The Kantonsblatt notes that for securities alternative valuation methods may apply, and Schaffhausen in practice follows the standard Swiss approach for listed instruments:

• Exchange-listed shares, bonds, ETFs and funds are valued at their market price on 31 December.
• Taxpayers usually rely on the Federal Tax Administration (FTA) year-end price list or on the “tax values” shown on the bank’s year-end tax statement.
• For foreign-currency securities, conversion into CHF is made using the FTA’s official year-end exchange rates.
• Where a security is listed but does not appear in the FTA list, the closing price on a recognised exchange at year-end (or a reasonable average of recent prices) can be used.

4. Unlisted Shares & Private Companies

For unlisted participations (shares in private companies, GmbH interests, cooperative shares), Schaffhausen follows the Swiss Tax Conference (SSK) guidelines for securities without a market price (KS 28) and has issued its own Wegleitung über Beteiligungen:

• If an official tax value per share has been set (often by the canton where the company is based), this value is also used for Schaffhausen wealth tax.
• Otherwise, unlisted securities 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 factor reflecting sector and risk.
• The resulting tax value is typically a weighted average of NAV and earnings value, consistent with KS 28 practice.
• The Schaffhausen participation guidance requires disclosure of the fair market value only for participations below 10%; larger holdings are primarily relevant for participation relief and business tax planning.

In practice, provide 2–3 years of financial statements plus a short valuation note and ensure that all Schaffhausen-resident shareholders use the same value per share.

5. Business Assets & Intangibles

For sole proprietorships and partnerships, business assets are valued in line with income tax:

• Movable business assets (inventory, machinery, operating vehicles) and intangibles (capitalised goodwill, IP) are taken at their tax balance sheet value after tax-accepted depreciation and provisions.
• Hidden reserves embedded in business assets remain embedded and are not automatically uplifted for wealth tax as long as the accounts are accepted by the tax authorities.
• Business real estate is reflected at book value, but in the background the valuation must remain broadly consistent with the property valuation rules in section 2.

6. Life & Annuity Insurance

The Schaffhausen Kantonsblatt highlights life and annuity insurance as a cantonal particularity:

• Under Art. 44(1)(e) StG, capital and annuity insurance policies are subject to wealth tax at their surrender value (Rückkaufswert).
• The insurer’s year-end statement usually shows the relevant surrender value for each policy.
• Pure risk policies without a surrender value are not part of taxable wealth.
• Occupational pensions (2nd pillar) and tied 3rd pillar (3a) savings remain exempt from wealth tax until payout, despite having an underlying vested benefits value.

7. Other Movable Assets

Assets that do not fall under real estate, securities, insurance or business assets must still be declared at their fair market value:

• Cash and bank deposits: nominal CHF balances at 31 December.
• Receivables: nominal value; for clearly doubtful or disputed receivables a lower value can be justified where the risk of loss is documented.
• Cryptoassets: valued at 31 December using prices from a recognised exchange or the FTA’s crypto rate list, converted into CHF if needed.
• Precious metals: bullion and investment coins valued at year-end metal prices.
• Art, jewellery and collectibles: realistic market value; appraisals or up-to-date insurance values are advisable for substantial collections.
• Motor vehicles, boats and aircraft: second-hand market value based on price guides or dealer quotes.
• Ordinary household goods and everyday personal items are generally not valued item-by-item; only unusual or concentrated value (e.g. high-end collections) is explicitly declared.

8. Foreign Assets & Exchange Rates

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

• Foreign bank accounts and portfolios are valued at local year-end nominal or market value and converted into CHF using the official FTA 31 December exchange rates.
• Foreign real estate is valued using local market or official tax values and then converted into CHF. These valuations are also used when allocating taxing rights between Schaffhausen, other cantons and foreign states.
• Foreign insurance and pensions follow the same principles as Swiss arrangements: savings-type policies at surrender value, true occupational pensions exempt until payout.
• Retain all foreign documentation in the original currency together with FX evidence to support the CHF figures used in the Schaffhausen tax return.

9. Liabilities & Net Wealth

Wealth tax in Schaffhausen is levied on net wealth. The Kantonsblatt summarises the process in two steps:

• Gross wealth minus debts gives net wealth (Reinvermögen).
• Net wealth is then reduced by social allowances (CHF 100,000 for married taxpayers in an intact marriage, CHF 50,000 for other taxpayers) to arrive at taxable wealth.

Debts are recognised as follows:

• Mortgages and bank loans are deductible at their nominal balance as at 31 December.
• Private loans, overdrafts and credit card balances are deductible if they represent genuine, legally enforceable obligations.
• Joint or guarantee obligations are deductible only to the extent the taxpayer must economically bear them.
• Debts denominated in foreign currency are converted into CHF using the same year-end FX rates as for assets in that currency.

10. Planning Takeaways

• Real estate focus: Schaffhausen’s property tax value blends market and earnings value. Monitoring the official valuation and requesting a review where it diverges from reality can materially affect annual wealth tax.
• Agricultural vs. investment property: The distinction between genuine agricultural/forestry use and investment use determines whether earnings value or market/value-based methods apply.
• Private companies: KS 28-based valuations and the Schaffhausen participation guidance make documentation of sustainable earnings and capitalisation factors critical.
• Business vs. private wealth: Because business assets are taken from the income-tax balance sheet, accounting policy (depreciation, reserves, property holding structures) directly shapes the wealth tax base.
• Use of allowances and rates: Combine accurate valuations and debt allocation with Schaffhausen’s wealth tax allowances and progressive rates. Use the Wealth Tax Calculator to model scenarios (property acquisitions, business exits, portfolio shifts).