This page focuses on how Basel-Stadt expects you to determine the tax value of assets for wealth tax purposes. Allowances and rates (including the progressive tariff of approx. 4.5–7.9‰ and tax-free amounts) are covered on the Allowances & Deductions and Rates pages.

1. General Valuation Principle

Under Basel-Stadt law, assets are in principle valued at fair market value (Verkehrswert). The Kantonsblatt summarises the rule as follows:

• Assets (Aktiven) are generally valued at fair market value.
• For insurance policies, securities and real estate, specific valuation rules apply.
• Business assets (Geschäftsvermögen) are valued at the value used for income tax (tax balance sheet value).

2. Real Estate (§46 StG; §§50–51, 53–54 StV)

Basel-Stadt distinguishes between self-used property, rented property and special categories such as building land and underused land:

• General rule: Real estate is valued at fair market value; the earnings value may be appropriately taken into account (§46(4) StG).
• Self-used single-family houses and condominiums: must be valued based on the real value (Realwert) (§46(4) StG, §51 StV). The real value is composed of a building component and a land component.
• Rented or leased properties: are in principle valued at earnings value (Ertragswert), both in private and business assets (§50(1) StV). The earnings value is determined using regulated capitalisation rules.
• Building land & underused property: plots held for redevelopment or resale and certain low-yield agricultural/forest parcels are valued at fair market value (§53 StV).
• Out-of-canton properties: are valued according to Basel-Stadt rules, with conversion using SSK factors and inter-cantonal allocation practice (§54 StV).

3. Securities & Receivables (Wertschriften; §46(2) StG; §48 StV)

Basel-Stadt provides detailed rules for securities and receivables:

• General rule: Securities and receivables are valued at their market price (Kurswert). If there is no market price, valuation is based on fair market value or intrinsic value.
• If the capitalised total earnings value (sum of income, capitalised at a rate set by the government) is lower than the total market value of the portfolio, the taxable value is the average of these two values (§46(2) StG). This can be attractive for low-yield portfolios.
• Listed securities:
  • Use the stock exchange price at the valuation date.
  • For Swiss-listed securities at year-end, use the FTA year-end price list (§48(1)(b) StV).
• Unlisted securities: must be valued following the SSK / FTA guidelines for securities without market price (Wegleitung zur Bewertung von Wertpapieren ohne Kurswert für die Vermögenssteuer, KS 28), taking into account any observable over-the-counter trades (§48(1)(c) StV).
• Employee participations:
  • Employee shares under §18b(1) StG are valued at fair market value; lock-up periods are recognised by a 30% deduction from market value (§48(2) StV).
  • Employee participations under §18b(3) and §18c StG must be declared at grant but with zero wealth tax value at that time (§46(2) StG).

4. Unlisted Shares & Private Companies (KS 28 Practice)

For participations in unlisted companies where Basel-Stadt has not yet set a specific tax value, the cantonal practice follows the Swiss Tax Conference’s Circular No. 28 (KS 28):

• Valuation relies on the company’s annual financial statements (Jahresrechnung).
• Typically, a practitioner method is applied: combination of net asset value and capitalised earnings value.
• Once a tax value per share is determined, it is used consistently across shareholders and tax years unless updated.

For private business holdings, you should:

• Provide 2–3 years of financial statements and any relevant notes.
• Highlight exceptional items and explain normalisation adjustments.
• Ensure all shareholders use the same valuation base to avoid mismatches in assessments.

5. Business Assets & Intangibles

The Kantonsblatt states that business assets of the taxpayer are valued at the value used for income tax. In practice this means:

• Movable business assets and intangibles are taken at their tax balance sheet values (after tax-accepted depreciation and provisions).
• Hidden reserves in business assets (e.g. depreciated real estate or securities) are preserved for income tax and do not require separate wealth tax adjustments, as long as the tax balance sheet is accepted.
• Business real estate is valued following the same real/earnings value rules as private real estate, but within the business balance sheet context.

6. Life & Annuity Insurance (§46(5) StG)

Basel-Stadt law includes a specific rule for life insurance and similar products:

• Life insurance policies (including refundable annuity insurance) are subject to wealth tax at their surrender value (Rückkaufswert) at year-end.
• Pure risk insurance without surrender value does not form part of taxable wealth.
• Pension assets in the second pillar and tied 3a pillar remain exempt from wealth tax.

Insurer statements as at 31 December are the primary evidence for the declared values.

7. Other Movable Assets & Exempt Property

All other assets follow the general fair market value principle unless a specific rule applies:

• Cash & deposits: declared at nominal value in CHF (or converted from foreign currency at the year-end rate).
• Precious metals: valued at bullion market prices at 31 December.
• Art & collectibles: valued at realistic market prices; high-value collections should be supported by appraisals or insurance values.
• Cryptoassets: not yet specifically regulated in Basel-Stadt law but typically treated like financial assets and valued using recognised exchange rates or FTA crypto reference lists at year-end.
• Household goods & personal effects: are usually treated as personal items and in practice form part of tax-free basic household property rather than actively valued item by item.

8. Foreign Assets & Exchange Rates

Basel-Stadt follows the harmonised Swiss practice for foreign assets:

• Foreign-currency assets and liabilities are converted into CHF using official year-end exchange rates (typically the FTA list).
• Foreign real estate is valued according to local market/official values and then converted to CHF. For allocation across cantons, Basel-Stadt uses the SSK conversion coefficients for inter-cantonal property valuation.
• Keep original statements in foreign currency plus documentation of the rates used to avoid later disputes.

9. Liabilities & Net Wealth Determination

Under the wealth tax rules, gross wealth minus debts equals net wealth; net wealth minus allowances equals taxable wealth (§47–49 StG). While the Kantonsblatt does not spell out a separate “debt valuation article”, standard practice applies:

• Debts for which the taxpayer is personally liable (mortgages, loans, credit lines) are recognised at their nominal value as at 31 December.
• Joint or guarantee debts are deductible only to the extent the taxpayer must economically bear them.
• Foreign-currency debts are converted at the same year-end exchange rate used for assets in that currency.

The resulting net wealth is then reduced by personal allowances (e.g. CHF 150,000 for married couples / certain single parents, CHF 75,000 for others plus CHF 15,000 per child) before applying the progressive wealth tax tariff (§49–50 StG).

10. Documentation & Verification

• Real estate: latest Basel-Stadt valuation notices (Realwert/Ertragswert), especially following the general revaluation of self-used properties and any subsequent adjustments.
• Securities: portfolio statements at 31 December plus FTA price list references for listed securities and KS 28 valuations for unlisted shares.
• Business assets: tax balance sheet and supporting schedules used in the income tax return.
• Insurance: insurer certificates showing surrender values at year-end for life and annuity contracts.
• Foreign assets & liabilities: original currency statements and FX documentation (e.g. FTA rate list).

11. Planning Takeaways

• Real vs. earnings value: Basel-Stadt’s split between real value (self-used) and earnings value (rented) can materially affect your wealth tax base. Changes in use (self-use vs. letting) may shift the valuation basis.
• Low-yield portfolios: The rule that allows using the average of market value and capitalised earnings value for securities can offer relief where yields are low relative to market prices.
• Business & unlisted shares: KS 28 valuations and consistent tax values for all shareholders are central to predictable outcomes in Basel-Stadt.
• Employee shares: The 30% discount for lock-up periods and zero-value treatment at grant for certain participations are important levers in cross-border or long-term incentive planning.
• Interaction with allowances and reliefs: Combine accurate valuation with Basel-Stadt’s wealth tax allowances and reliefs for low-income taxpayers and low-yield assets (§49–52 StG) to manage the effective burden.