Nonresidents are subject to Bern wealth tax on assets that are economically connected to the canton. In practice, this limited tax liability mainly concerns real estate and business assets located in Bern, while foreign portfolios and movable property held abroad remain outside the Bern tax base.

This guide summarises scope, valuation, and compliance requirements for the 2025 tax year for nonresident individuals with assets in the canton of Bern.

1. Scope of Limited Tax Liability

A nonresident becomes liable for Bern wealth tax if they hold any of the following:

• Residential or commercial real estate situated in the canton of Bern
• Land or agricultural property located within Bern
• Permanent establishments or fixed places of business (e.g., workshops, offices, hotels, restaurants) in Bern
• Business assets allocated to a Bern branch or place of effective management

Assets outside Switzerland — such as foreign securities, overseas real estate, and non-Swiss bank accounts — are excluded from the Bern wealth-tax base, but may be relevant in the country of residence for rate or reporting purposes.

2. Valuation Basis

Bern applies cantonal valuation rules that are harmonised with federal law but implemented through its own practice:

• Real estate: Cantonal tax value (Steuerwert), typically below full market value
• Securities and bank assets: Year-end tax value based on official federal tax value lists and foreign exchange rates
• Business assets: Book or fair value according to Swiss accounting standards, subject to any Bern-specific adjustments
• Pension assets: Occupational and pillar 3a pension assets are generally exempt from wealth tax until payout

The Steuerwert for real estate in Bern generally reflects a fraction of market value, based on location, use, and type of property. For more technical details on valuation within this canton, see Valuation Rules.

3. Debt Allocation

Debt allocation for nonresidents in Bern follows the Swiss principle of economic connection combined with proportional allocation:

• Mortgages secured on Bern property are deductible from the taxable wealth value of that property.
• Other debts are deductible only insofar as they can be economically tied to Swiss assets or allocated proportionally.
• If the taxpayer owns property in several Swiss cantons, debt is allocated among cantons based on the relative taxable values of those assets.

Interest on debt is relevant for income tax but is allocated between jurisdictions (and within Switzerland between cantons) by reference to Swiss-sourced assets and income.

4. Allowances & Exemptions

Nonresident taxpayers in Bern generally do not receive the full range of personal allowances and deductions granted to resident individuals. However, certain items are normally excluded from the wealth-tax base:

• Tax-exempt pension capital (2nd pillar and pillar 3a) until withdrawal
• Normal household goods and personal effects
• Small technical or statutory exemptions required under harmonised cantonal law

For nonresidents, the effective burden is mainly driven by the Steuerwert, the cantonal and municipal wealth tax scale, and debt allocation, rather than personal allowances.

5. Double Tax Treaties

Under Switzerland’s double tax treaties, taxation of immovable property is typically assigned to the state where the property is located. As a result, the canton of Bern retains the right to tax Bern-situated real estate and related business premises, even if the owner is resident abroad.

Relief is then usually granted in the country of residence through:

• Exemption with progression (Swiss wealth is exempt but counted for rate determination), or
• Foreign tax credit (Bern wealth tax is credited against home-country wealth or property taxes).

It is important to check the specific treaty between Switzerland and your country of residence and to retain Bern tax assessments and receipts as evidence of Swiss tax paid.

6. Swiss Tax Representative

Nonresidents will usually need to provide a Swiss correspondence address or appoint a tax representative for dealings with the Bern tax authorities.

• Swiss fiduciaries, tax advisors, or lawyers can act as authorised representatives.
• Official correspondence and assessments are issued in German (and in certain districts also in French, depending on the commune).
• Using a representative helps manage deadlines, language issues, and any appeals or objections.

7. Filing & Compliance

Nonresident owners of property or business assets in Bern file a limited Swiss tax return covering Swiss-situs income and wealth. The wealth tax portion focuses on net taxable assets situated in Bern as at 31 December.

• Official confirmation of the property’s Steuerwert
• Mortgage and loan confirmations as of year-end
• Rental income and expense statements for let property
• Business balance sheet and asset schedules where a Bern permanent establishment exists

Filing deadlines in Bern broadly align with those for resident taxpayers. Extensions are generally possible upon request, often submitted through a Swiss representative.

8. Example — Nonresident Apartment Owner

Profile: Resident of the United Kingdom, owns an apartment in Bern city.

• Steuerwert: CHF 900,000
• Mortgage balance: CHF 600,000
• Combined cantonal/municipal multiplier (illustrative): 1.60 (160 % of simple tax)

Step 1 — Net taxable wealth: CHF 900,000 − CHF 600,000 = CHF 300,000
Step 2 — Simple wealth tax (illustrative progressive rate): 3.5‰ of CHF 300,000 = CHF 1,050
Step 3 — Applying multipliers: CHF 1,050 × 1.60 = CHF 1,680
→ Indicative effective burden of about 0.56 % of net taxable wealth (for illustration only; actual rates depend on year and commune).

9. Ending Bern Tax Liability

Wealth tax liability in Bern normally ends when the property or business assets in the canton are sold, transferred, or otherwise disposed of. A final limited tax return must be filed and any remaining wealth tax and property gains taxes settled.

The Bern tax office should be notified promptly of the disposal to avoid continued assessments based on outdated ownership records.

10. Planning Insights for Nonresidents

• Obtain an estimate of the Bern Steuerwert and local multipliers before acquiring property.
• Align mortgage structure and debt allocation with your broader cross-border wealth and estate planning.
• Review how Swiss wealth tax interacts with home-country rules and relevant double tax treaties.
• Use a Swiss tax representative to manage filings, handle German-language correspondence, and coordinate with your home-country advisor.