In the Canton of Fribourg, wealth tax is levied on net wealth (fortune nette): worldwide assets minus deductible liabilities and any applicable tax-free thresholds. Fribourg applies a progressive wealth tax rate that typically ranges from around 0.9‰ to 3.3‰ of taxable net wealth, so the way allowances and deductions are applied has a direct impact on the final tax bill.

This overview reflects current practice under the Loi sur les impôts cantonaux directs (LICD-FR), in particular the provisions on impôt sur la fortune (Art. 52 ff. LICD), and guidance of the Service cantonal des contributions Fribourg.

Personal Allowances

Fribourg uses minimum taxable wealth thresholds that effectively act as wealth tax allowances. Only net wealth above these levels is subject to cantonal and communal wealth tax. The applicable threshold depends on the taxpayer’s situation as at 31 December of the tax year.

Values reflect current practice for the Fribourg wealth tax minimum thresholds for individuals and couples. Exact figures and brackets are set out in the cantonal wealth tax scales (barème fortune) and may be adjusted periodically. Always use the official tables for the relevant tax year.

Debt Deductions

Wealth tax in Fribourg is based on net wealth, so legally enforceable, clearly documented liabilities outstanding on 31 December can be deducted from gross assets. Typical deductible debts include:

• Mortgage balances on Swiss and foreign real estate in private ownership
• Bank loans, investment credit lines and margin loans
• Private loans supported by written agreements and interest documentation
• Outstanding federal, cantonal and communal tax liabilities

Debts denominated in foreign currency must be converted into CHF at the official year-end exchange rate used by the tax authorities (typically those published by the Federal Tax Administration).

Contingent or informal obligations (e.g. guarantees, sureties or letters of comfort) are not deductible until they crystallise as an actual, enforceable liability.

Pension Assets & Retirement Accounts

As in other Swiss cantons, Fribourg exempts certain retirement savings from wealth tax as long as the funds remain within recognised pension vehicles. The following are wealth-tax-exempt while in the plan:

• Occupational pension assets in Swiss 2^nd pillar schemes (berufliche Vorsorge / prévoyance professionnelle (BVG/LPP)).
• Tied individual retirement accounts (pillar 3a).

Ordinary savings and investments (pillar 3b) remain fully taxable and must be declared at their taxable value.

Pension buy-ins and pillar 3a contributions primarily reduce income tax. They affect wealth tax only indirectly by shifting assets from taxable private accounts into exempt pension structures.

Valuation Adjustments

Under the LICD-FR and Fribourg tax practice, the wealth tax base generally reflects market value (valeur vénale) of assets as at 31 December, subject to specific valuation rules and reliefs:

• Household effects: normal household goods and personal items of daily use (mobilier de ménage et objets personnels d’usage courant) are exempt from wealth tax.
• Securities and funds: listed securities are valued at their official year-end prices; many collective investments and non-listed instruments have tax values published or accepted by the authorities.
• Unlisted business interests: for private participations in Swiss companies (non-listed shares and cooperative participations) held as private assets, Fribourg grants relief on the average wealth tax rate — in certain cases the average wealth tax attributable to these participations is reduced (e.g. by a percentage) to support business ownership.
• Real estate: private property is valued based on cantonal rules (tax value / market value depending on type and use); agricultural property may be assessed using income-based methods and special rules.
• Life and annuity policies: policies with a surrender value are taxable at that value; non-surrenderable claims generally fall outside the wealth tax base.
• Cryptocurrencies and digital assets: typically valued at the official year-end prices published by the Federal Tax Administration.

Marital Property & Family Context

Married couples living in an undissolved marriage are generally taxed jointly in Fribourg. Their income and wealth are aggregated for tax purposes, regardless of the matrimonial property regime, and the higher minimum wealth threshold (CHF 35,000) applies to their combined net wealth if they form a common household.

The assets of minor children under parental authority are usually attributed to the parents’ wealth tax return. This can influence which threshold applies and, in some cases, the progression of the wealth tax scale.

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

Documentation & Compliance

To support the wealth tax declaration, the Fribourg tax administration expects clear, consistent documentation for assets and liabilities, including:

• 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 accepted tax values for real estate and significant private company interests

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

Planning Insights

• Because Fribourg applies a progressive wealth tax rate with relatively low minimum thresholds (CHF 20k / CHF 35k), accurate calculation of net wealth and proper use of debt deductions can have a noticeable impact even at moderate wealth levels.
• For entrepreneurial taxpayers, Fribourg’s relief for non-listed business participations in private wealth can significantly reduce the effective wealth tax burden on shareholdings; structuring business interests correctly is therefore important.
• Mortgages and investment loans can lower taxable net wealth, but interest costs reduce overall returns and affect income tax. Any debt restructuring should be evaluated across both wealth and income tax.
• Large holdings of low-yield or non-productive assets (excess cash, collectibles) above the minimum thresholds can drive wealth tax without improving returns. Reallocating into diversified portfolios or tax-efficient pension vehicles may improve both risk/return and tax outcomes.
• Intra-family planning (gifts, loans, early transfers of real estate or business interests) can shift wealth tax exposure between generations. Only properly documented arrangements are recognised for tax purposes, and they may also trigger inheritance or gift tax, so coordinated advice is recommended.