Zurich’s wealth tax is based on net assets, meaning total gross wealth minus qualified allowances and deductible liabilities. Correct classification and documentation of these elements can make a measurable difference to your effective tax burden.

The following overview reflects current practice under the Gesetz über die Staats- und Gemeindesteuern (StG-ZH) and the official guidance of the Zurich Cantonal Tax Office (KStA Zürich).

Personal Allowances

Zurich grants a basic personal exemption from taxable wealth that varies by filing status. The exemption applies to each taxpayer as of 31 December of the tax year.

Values shown reflect Zurich’s 2025 schedule; thresholds are periodically adjusted.

Debt Deductions

Liabilities that exist as of the balance date (31 December) may be deducted if they are legally enforceable and clearly documented. Common deductible items include:

• Mortgage balances on Swiss or foreign property
• Bank loans, margin loans, or personal notes payable
• Private loans (with written agreement and interest documentation)
• Outstanding tax liabilities (cantonal and federal)

Debts denominated in foreign currency must be converted at the official year-end exchange rate published by the Zurich tax administration.

Contingent or informal obligations (e.g., guarantees or letters of comfort) are not deductible until they become enforceable.

Pension Assets & Retirement Accounts

Assets held in Swiss occupational pension plans (2^nd pillar) and tied individual retirement accounts (pillar 3a) are exempt from wealth tax until distributed. Non-tied savings (pillar 3b) remain taxable.

Pension buy-ins (“Einkäufe in die zweite Säule”) and 3a contributions reduce income tax, but they do not directly impact wealth tax unless they alter declared account balances.

Valuation Adjustments

Certain asset categories benefit from valuation reliefs or special rules that indirectly reduce taxable wealth:

• Unlisted business interests: valued using the Praktikermethode (weighted average of capitalized earnings and net asset value) — may yield discounts vs. book value.
• Real estate: generally taxed at the official assessed value (amtlicher Wert), often below market price.
• Artwork and collectibles: taxable at fair market value if significant; ordinary household effects remain exempt.
• Cryptocurrencies: valued at the official year-end price published by the Federal Tax Administration (FTA).

Marital Property & Family Context

Married couples are taxed jointly, and assets of dependent children are attributed to the parents. If spouses live separately and are taxed individually, only the personal allowance and personal liabilities apply to each.

Gifts or inheritances received during the year are added to taxable wealth as of 31 December unless specifically exempted (e.g., qualifying pension assets or tax-free insurance payouts).

Documentation & Compliance

The Zurich tax authority expects supporting evidence for both sides of the balance sheet:

• Year-end bank and securities statements
• Mortgage balance confirmations
• Private loan agreements
• Pension account summaries (2^nd and 3a pillars)

Submitting consistent documentation across income and wealth sections helps prevent adjustments during review.

Planning Insights

• Using mortgages strategically can lower wealth tax but increases interest costs — balance both sides carefully.
• Holding non-productive assets (cash, art) in excess of exemptions can inflate the taxable base; consider efficient reallocation.
• Structured gifts or intra-family loans may shift ownership but require proper legal form to be recognized for tax purposes.