Wealth tax in Aargau is based on the fair value of assets as at 31 December. The canton follows federal valuation standards and uses several official reference lists and cantonal valuation models to ensure consistent practice. This page summarises key valuation methods and documentation requirements relevant for the 2025 tax year.

1. Real Estate

In Aargau, real property is valued for wealth tax purposes using the official wealth tax value (Vermögenssteuerwert), derived from the property’s market value under the cantonal valuation model. As of 2025, Aargau has implemented a comprehensive revaluation of all properties to align tax values with an updated market basis.

• Include all Aargau property at its current Vermögenssteuerwert as at 31 December.
• For property in other cantons, declare the local official tax value and note it for allocation (repartition) purposes.
• Maintain the most recent assessment notice from the cantonal valuation authority or property tax statement.

2. Listed Securities

Aargau adopts the official year-end price list published by the Federal Tax Administration (FTA). These lists cover Swiss and international equities, bonds, and funds to ensure uniform valuation across cantons.

• Use FTA’s Kursliste (31 December) for each security or fund unit.
• Apply the official tax value or closing price as indicated; no separate averaging is usually required.
• Accrued interest on bonds is included in the year-end value under the FTA list.
• Attach portfolio statements showing 31 December holdings and total market value in CHF.

3. Unlisted Shares & Private Companies

For unlisted companies, Aargau follows the federal practitioner method (Praktikermethode) as set out in the Swiss Tax Conference (SSK) guidelines (KS 28). This combines two components:

• Net asset value (NAV): Book equity adjusted for hidden reserves and off-balance-sheet items.
• Capitalised earnings value: Average sustainable profit × capitalisation factor (typically 7–10, depending on risk and industry).

The taxable value is typically the weighted average (often 1/3 NAV + 2/3 earnings value). In justified cases (start-ups, restructuring, exceptional profits), alternative weightings or methods may be accepted if documented.

• Provide financial statements for the last 2–3 years, including notes and any valuation reports.
• Explain exceptional items affecting earnings (one-off gains/losses, restructurings, COVID-related measures, etc.).
• Ensure valuation consistency across owners and years; divergent values for the same shares may prompt review.
• Check Aargau-specific practice on reductions for certain participations (e.g. percentage reductions from the gross tax value) and apply them consistently where applicable.

4. Other Assets

Assets not falling under real estate or listed securities must still be declared at their fair market value as at 31 December:

• Cryptoassets: Value at 31 December using FTA’s crypto rate list or, where not listed, a recognised exchange average (document the source).
• Precious metals: Use published market prices (e.g., standard bullion quotations) at year-end.
• Art & collectibles: Insure and declare at realistic fair value; obtain an appraisal where values are material.
• Cash, deposits, receivables: Nominal balance in CHF equivalent, including any accrued but unpaid interest.
• Insurance surrender values: Use the insurer’s official year-end surrender value statement.

5. Foreign Assets & Exchange Rates

All assets must be expressed in CHF using the official year-end exchange rates published by the FTA. This ensures consistency among cantons and facilitates the allocation of wealth for inter-cantonal and international tax purposes.

• Apply 31 December spot rates from the FTA’s official FX list for each foreign currency position.
• Retain evidence of balances in original currency (bank statements, portfolio reports) and the conversion rate used.
• For foreign real estate, declare the local market value and convert to CHF at the year-end rate; allocation rules are handled separately.

6. Liabilities (Valuation for Deduction)

Liabilities are recognised at their nominal value as at 31 December. For foreign-currency debt, apply the same official CHF conversion rate as for assets. Interest accrued but unpaid is generally included in the liability balance if it is part of the year-end statement.

• Include mortgages, bank loans, private loans, and credit card balances at the outstanding amount on 31 December.
• Ensure that liabilities are allocated correctly between cantons where you have property or business interests in more than one canton.
• Keep loan contracts and year-end statements available in case the tax office requests supporting evidence.

7. Documentation & Verification

• Maintain statements for all assets and liabilities dated precisely at 31 December (or the closest available statement for illiquid assets).
• Ensure valuation consistency year over year — abrupt increases or decreases should be explainable (e.g., disposals, acquisitions, revaluations).
• Attach or retain valuation reports for unlisted shares or real estate where values deviate materially from previous years.
• For complex structures (trusts, foundations, carried interest), prepare a short memo explaining the valuation approach and underlying documents.

8. Planning Takeaways

• Valuation discipline is central in Aargau’s system — even with moderate rates, small valuation differences can materially affect long-term wealth tax costs.
• Review new Vermögenssteuerwerte for properties following the 2025 revaluation and consider requesting a review if the value appears significantly above realistic market value.
• For business owners, maintain clear documentation of practitioner-method assumptions (capitalisation rate, normalised earnings, adjustments).
• Coordinate wealth tax valuations with inheritance, gift, and income tax planning to avoid double counting or inconsistent values across tax types.
• Where significant foreign assets are involved, ensure consistent FX conversion and documentation to mitigate queries from the tax office.