In the Canton of Bern, wealth tax is charged on a taxpayer’s net wealth (Reinvermögen): total worldwide assets minus deductible liabilities and any applicable personal allowances. Because Bern uses a progressive wealth tax scale, the level of taxable net wealth after allowances and deductions can significantly influence the overall burden.

This overview reflects current practice under the Steuergesetz des Kantons Bern (StG-BE) and the implementation rules of the Kantonale Steuerverwaltung Bern (KStA BE), including recent adjustments to tax parameters.

Personal Allowances

Bern grants basic wealth tax exemptions which reduce the taxable net wealth base. The level of exemption depends on filing status. The relevant status is the situation as at 31 December of the tax year.

Exact allowance amounts for the current year are specified in Bern’s official tax parameter sheet (Steueranlage) and the wealth tax section of the cantonal tax guide. Always refer to the tables for the relevant tax year when preparing a return.

Debt Deductions

Wealth tax in Bern is based on net wealth, so legally enforceable, documented liabilities as at 31 December may be deducted from the gross asset base. Typical deductible items include:

• Mortgage balances on Swiss and foreign real estate held privately
• Bank loans, investment credit lines and margin loans
• Private loans evidenced by written agreements and interest documentation
• Outstanding federal, cantonal and municipal tax liabilities

Foreign-currency debts must be converted into CHF using the official year-end exchange rates recognised by the Bern tax authorities (typically those issued by the Federal Tax Administration).

Contingent or informal obligations (such as guarantees, sureties or letters of comfort) are not deductible until they become actual, enforceable liabilities.

Pension Assets & Retirement Accounts

As in other Swiss cantons, Bern treats certain retirement savings as wealth-tax-exempt while funds remain within the pension structure. In particular:

• Assets held in Swiss occupational pension schemes (2^nd pillar / BVG) are exempt from wealth tax until withdrawal.
• Tied individual retirement accounts (pillar 3a) are also excluded from taxable wealth.

Non-tied savings and investment products (pillar 3b) remain fully subject to wealth tax and must be declared at their taxable value.

Pension buy-ins (“Einkäufe in die zweite Säule”) and 3a contributions primarily reduce income tax; they affect wealth tax only indirectly by shifting assets out of taxable private accounts into exempt pension vehicles.

Valuation Adjustments

Bern’s wealth tax rules follow the general Swiss principle of valuing assets at fair or tax value as of 31 December, with specific rules that may reduce taxable wealth versus simple market value:

• Household effects: normal household goods and personal belongings (Hausrat und persönliche Gebrauchsgegenstände) are exempt from wealth tax.
• Securities and funds: listed securities are valued at their official year-end prices; collective investments often have specific taxable values published by the authorities.
• Unlisted business interests: typically valued under practice methods that combine capitalised earnings and net asset value, in line with guidance from the Swiss tax conference and cantonal practice; this may result in a taxable value below book equity.
• Real estate: private property in Bern is usually assessed at its tax value (amtlicher oder steuerlicher Wert), which is often below open-market value; separate rules apply for agricultural property.
• Life and annuity policies: policies with a surrender value are taxed on that value; non-surrenderable claims are generally excluded from the wealth tax base.
• Cryptocurrencies and digital assets: generally valued at the official year-end prices published by the Federal Tax Administration.

Marital Property & Family Context

In Bern, married couples living in an undissolved marriage are generally taxed jointly. Their income and wealth are aggregated for tax purposes irrespective of the matrimonial property regime, and the joint allowance and brackets apply.

The assets of minor children under parental authority are usually attributed to the parents’ tax return for wealth tax purposes, with any child-related allowances calculated on that basis. Separate treatment may apply where children have significant independent income or assets under special arrangements.

Gifts, inheritances and other extraordinary inflows during the year are included in taxable wealth as at 31 December, unless they fall under specific exemptions (for example, certain pension or insurance benefits). Separate rules govern inheritance and gift tax in Bern and should be considered together with wealth tax planning.

Documentation & Compliance

The Bern tax administration expects clear, consistent documentation to support both assets and liabilities declared for wealth tax, such as:

• Year-end bank and custody statements for cash, securities and fund holdings
• Mortgage and loan balance confirmations as at 31 December
• Written agreements and interest evidence for private loans
• Pension fund statements (2^nd pillar) and pillar 3a account summaries
• Valuation reports or tax values for real estate and major private company interests, as needed

Ensuring that the figures in the income tax and wealth tax sections of the return reconcile (for example for portfolios or rental properties) reduces the risk of follow-up questions and adjustments during assessment.

Planning Insights

• Because Bern uses a progressive wealth tax scale, managing taxable net wealth around key brackets can provide recurring savings, especially for higher-net-worth households.
• Strategic use of mortgages and investment loans can reduce taxable net wealth, but the associated interest reduces overall returns and can affect income tax — model both impacts before restructuring.
• Concentrated positions in low-yield or non-productive assets (excess cash, collectibles) above the allowance thresholds can increase wealth tax; reallocating into diversified portfolios or tax-advantaged pension vehicles may improve both risk/return and tax outcomes.
• Intra-family planning (gifts, loans, early transfers of business interests or real estate) can shift wealth tax exposure between generations. Only properly documented arrangements are recognised and they may also trigger inheritance or gift tax, so coordination is crucial.