Aargau combines progressive but moderate wealth tax rates, meaningful allowances and municipal Steuerfüsse that vary by commune. While Swiss law does not allow aggressive deferral or broad exemptions, a disciplined approach to residence, valuation, and structuring can noticeably optimise the effective burden over time.

1. Residence & Municipality Selection

In Aargau, the total wealth tax is calculated by applying both the cantonal tax rate and the municipal Steuerfuss to the simple tax. Municipal rates differ significantly between communes, so the choice of municipality can have a recurring impact on the effective rate.

• Compare key municipalities such as Aarau, Baden, Wettingen, Wohlen, Lenzburg and lower-tax surrounding communes in terms of their total cantonal + municipal burden.
• Review other factors beyond tax: commuting and transport links, schooling, housing market, and local services.
• As in all Swiss cantons, tax residence must reflect the genuine centre of life (Lebensmittelpunkt); artificial relocations are at risk of challenge.

2. Using Leverage Strategically

Aargau allows deduction of documented debt when determining taxable net wealth (Nettovermögen). Properly structured leverage can reduce the tax base while still fitting within a conservative Swiss risk profile.

• Ensure financing arrangements are genuine: arm’s-length interest, repayment terms, and appropriate collateral.
• Mortgage debt on Aargau real estate and bank or business loans are normally deductible; intra-group or intra-family loans require evidence of economic substance.
• Test whether the after-tax cost of debt is justified — interest may be deductible for income tax, but the overall financing still needs to be commercially sound.

Highly leveraged or circular structures that lack commercial rationale can be challenged and debt may be partially disallowed.

3. Valuation Reviews & Timing

Because Aargau applies detailed valuation rules and has recently updated its property valuation basis, regular valuation reviews are central to wealth tax planning. Key areas:

• Real estate: Aargau uses an official wealth tax value (Vermögenssteuerwert) derived from market value under the cantonal model. Following the comprehensive revaluation of properties, check whether the official value still aligns with current market conditions.
• Private companies: For unlisted shares, Aargau applies the federal practitioner method (Praktikermethode). Ensure the mix of net asset value and capitalised earnings is well documented and that any adjustments (e.g. for start-up risk or one-off profits) are defensible.
• Investments and new asset classes: Listed securities follow year-end market values. For assets such as crypto or private funds, confirm the valuation source and consistent reporting as at 31 December.

4. Pension & Retirement Coordination

As in other cantons, Aargau residents can use pillar 2 buy-ins and pillar 3a contributions to reduce taxable income while sheltering assets from wealth tax inside the pension system. Integrating these decisions into broader wealth planning is often more valuable than treating them as stand-alone deductions.

• Use the full 3a allowance where cash-flow permits, particularly in higher-income years or ahead of major transactions (e.g. sale of a business).
• Review options for voluntary pension top-ups and how they interact with early or phased retirement plans.
• Plan pension and 3a withdrawals over several tax years to avoid concentrated income and high marginal rates at the time of retirement.

5. Family & Succession Planning

Aargau levies inheritance and gift tax at the cantonal level, but spouses, registered partners, direct descendants and parents are exempt. For more distant relatives and non-related heirs, progressive rates apply, making timing and choice of beneficiary an important planning lever alongside wealth tax.

• Consider gradual transfers to the next generation, especially where future value growth is expected in private companies or real estate portfolios.
• Use formal valuations for gifts of unlisted shares and track prior transfers to avoid double counting between wealth tax and inheritance/gift tax reporting.
• For families with assets or heirs across multiple cantons or countries, coordinate situs rules (where assets are taxed) and treaty relief with the Aargau inheritance tax position.

6. Nonresident Considerations

Nonresidents with Aargau-situs assets — particularly real estate and business interests — can usually limit wealth tax exposure to those assets allocated to Aargau. However, there is still room for optimisation via loan allocation, valuation management, and clear documentation of ownership and use.

Review:

• Whether mortgage and other debt has been appropriately allocated to Aargau-situs property and related investments.
• How Aargau’s valuation rules interact with the home-country tax treatment of the same assets.
• The need for a Swiss tax representative and proper filing where Aargau assets are held through foreign companies or trusts.

See Nonresident Guide for details on limited tax liability and cross-border coordination.

7. Integration with Broader Planning

Effective wealth tax planning in Aargau should be aligned with income, corporate and estate strategies, rather than pursued in isolation. For families, entrepreneurs and cross-border taxpayers:

• Model the combined effective tax load (income tax, wealth tax and social security contributions) under different residence and structuring options.
• Use consolidated reporting where portfolios are spread across Switzerland and abroad, so that Aargau filings draw from a consistent data set.
• Coordinate with investment managers, pension providers, trustees and accountants to avoid mismatches between economic reality and what is reported to the Aargau tax authorities.

Summary — Aargau Planning Features

• Progressive wealth tax with generally moderate effective rates by Swiss standards, influenced by the chosen municipality and household profile.
• Clear framework for net-wealth determination, including debt deductions and official valuation rules for real estate and private companies.
• Standard Swiss tools (pillar 2, pillar 3a, corporate structuring and intergenerational transfers) can all be integrated into a coherent Aargau-focused plan.
• Active management of residence, valuation and leverage can produce material savings over the medium to long term, especially at higher wealth levels.