Obwalden Wealth Tax Cases

Obwalden Wealth Tax: Cases & Worked Examples

Illustrative computations showing how Obwalden’s proportional wealth tax and local tax units (Steuerfüsse) apply in practice in communes such as Sarnen, Kerns, Alpnach and Engelberg.

Obwalden applies a proportional wealth tax: the simple cantonal tax on taxable net wealth is a flat 0.2‰ (0.02%). The final bill is obtained by multiplying the simple tax by the cantonal tax foot and the communal tax units.

For individuals, the effective burden at the cantonal capital Sarnen typically remains below ≈ 0.14% of net wealth, placing Obwalden among Switzerland’s lowest wealth-tax cantons. Engelberg, as a touristic mountain commune, sits towards the upper end of the cantonal range, while Sarnen, Kerns and Alpnach are generally lighter.

Standard wealth tax allowances (rounded) are: CHF 25,000 for singles, CHF 50,000 for married couples and CHF 10,000 per child. The examples below use indicative 2025-style parameters for planning illustration only.

All numbers rounded; church tax ignored. Minimal property tax rules are not modelled explicitly.

Case A — Single Professional in Sarnen (Cantonal Capital)

Commune: Sarnen (benchmark within Obwalden)
Assets: CHF 1,000,000 (listed securities & cash)
Liabilities: none
Allowance: CHF 25,000 (single)

Net wealth	CHF 1,000,000
Less allowance	− CHF 25,000
Taxable net wealth	CHF 975,000
Simple wealth tax (0.2‰)	≈ CHF 195
Combined cantonal & communal factor	≈ ×5.0
Wealth tax due	≈ CHF 980
Effective rate	≈ 0.10% of net wealth

Observation: At around CHF 1m of financial wealth, Sarnen’s total wealth tax burden is substantially lower than in mid- or high-tax cantons, and competitive even versus central-Swiss low-tax cantons.

Case B — Married Couple with Two Children in Kerns

Commune: Kerns (slightly higher tax units than Sarnen)
Assets: CHF 2,500,000 (family home + portfolios)
Liabilities: CHF 900,000 mortgage
Allowances: CHF 50,000 (married) + CHF 20,000 (two children) = CHF 70,000

Net wealth	CHF 1,600,000
Less allowances	− CHF 70,000
Taxable wealth	CHF 1,530,000
Simple wealth tax (0.2‰)	≈ CHF 306
Combined cantonal & communal factor	≈ ×6.0
Estimated wealth tax	≈ CHF 1,840
Effective rate	≈ 0.11% of net wealth

Planning angle: Because the tariff is proportional, the main drivers are the size of net wealth (after mortgage) and the communal tax units. Small differences in the factor remain visible even at Obwalden’s low overall rate level.

Case C — Entrepreneur with Private Company Shares in Alpnach

Commune: Alpnach (moderate-to-low tax units)
Unlisted shares: CHF 3,500,000 (valued under practitioner method)
Other assets: CHF 700,000 (cash & listed portfolios)
Liabilities: CHF 1,500,000 (business and private loans)
Filing status: Married, no children (allowance CHF 50,000)

Net wealth	CHF 2,700,000
Less allowance	− CHF 50,000
Taxable wealth	CHF 2,650,000
Simple wealth tax (0.2‰)	≈ CHF 530
Combined cantonal & communal factor	≈ ×4.5
Total wealth tax	≈ CHF 2,390
Effective rate	≈ 0.09% of net wealth

Assumes consistent practitioner-method valuation for the private company and no special additional reliefs.

Planning angle: For entrepreneurs, Obwalden’s proportional wealth tax means that valuation of private participations and the choice of commune interact linearly: every additional million of net wealth carries a very predictable, relatively small absolute tax cost.

Case D — Nonresident Owning a Holiday Apartment in Engelberg

Tax nexus: Nonresident with Obwalden property only
Property value: CHF 1,200,000 (wealth-tax value)
Mortgage: CHF 800,000 (loan economically tied to the property)
Commune: Engelberg (upper end of the Obwalden tax range)
Allowance: CHF 25,000 (single, allocated to Obwalden; simplified)
Other Swiss assets: none

Swiss-situs net wealth	CHF 400,000
Less allowance (simplified)	− CHF 25,000
Taxable Swiss-situs wealth	CHF 375,000
Simple wealth tax (0.2‰)	≈ CHF 75
Combined cantonal & communal factor	≈ ×7.0
Estimated wealth tax	≈ CHF 525
Effective rate on Swiss-situs wealth	≈ 0.13%

Tip: For nonresidents, Obwalden taxes only Obwalden-situs wealth. The allocation of mortgage debt to the Engelberg property is crucial; other global assets and liabilities remain relevant primarily in the country of residence.

Case E — Comparison: Sarnen vs. Kerns vs. Engelberg

Single taxpayer with CHF 2,000,000 taxable net wealth (after allowances and debts)

	Sarnen	Kerns	Engelberg
Simple wealth tax (0.2‰ of CHF 2,000,000)	CHF 400
Indicative combined factor	≈ ×5.0	≈ ×5.8	≈ ×7.0
Total wealth tax	≈ CHF 2,000	≈ CHF 2,320	≈ CHF 2,800
Effective rate (on taxable wealth)	≈ 0.10%	≈ 0.12%	≈ 0.14%
Annual difference	Spread of roughly CHF 800 per year between Sarnen and Engelberg at identical taxable wealth

Note: Within Obwalden, the wealth tax tariff is strictly proportional; the spread between communes is driven by tax units. Engelberg illustrates the upper end of the cantonal range but still remains modest by national standards.

Key Takeaways

Obwalden is a very low wealth tax canton, with effective rates typically well below 0.15% of net wealth.
The tariff is strictly proportional (0.2‰ simple tax); communal and cantonal tax units are the main multipliers.
Standard allowances (CHF 25,000 for singles, CHF 50,000 for married couples and CHF 10,000 per child) keep modest wealth lightly taxed.
Mortgages and other deductible liabilities reduce taxable net wealth linearly, making leverage a powerful planning tool for property owners.
For entrepreneurs with significant private-company holdings, valuation methodology and the choice of commune (e.g. Alpnach vs. Engelberg) directly shape the wealth tax outcome.
Nonresidents are taxed only on Obwalden-situs wealth; in borderline cases, the separate minimal property tax regime may become relevant and should be checked with the official calculator.