Wealth tax in Fribourg is levied on the taxpayer’s net assets as at 31 December. The cantonal tax law (LICD) and practice of the cantonal tax administration define how the tax value (valeur fiscale / Steuerwert) of different asset classes is determined. This page summarises the key valuation methods and documentation expectations for the 2025 tax year.

Fribourg follows the general Swiss principle of valuing assets at fair market value, but uses specific formulas for certain items. For example, for foreign real estate the tax value is calculated as (1 × market value + 2 × income value) / 3, a weighted average of open-market and rental value used for wealth tax purposes.

1. Real Estate

Real estate is a central component of the Fribourg wealth tax base. The canton distinguishes between the market value, the income value (based on rental potential), and the resulting tax value (Steuerwert / valeur fiscale).

• For properties recorded in the cantonal property register, the wealth tax is based on the official tax value derived from the register. This value reflects both capital and income characteristics of the property.
• For properties abroad (and by analogy, in the general methodology) the tax administration calculates the tax value as (1 × market value + 2 × income value) ÷ 3, using purchase price or comparable sales for market value and sustainable rental income for income value.
• Where purchase documentation is old or missing, market value is estimated based on comparable transactions; the administration can assist with these estimates.
• For owner-occupied homes, the tax value usually lies below full market value, but still tracks changes in market conditions over time.

2. Business Assets & Intangibles

Movable business assets and intangibles held in a sole proprietorship or partnership are generally valued using the values in the tax balance sheet used for income tax:

• Business assets are taken at their income-tax values (after tax-accepted depreciation and provisions).
• Self-created intangibles (goodwill, internally developed IP) are valued in line with cantonal practice; where capitalised, the tax balance sheet value is key.
• Ensure that depreciation and hidden reserves are consistent with Fribourg income tax rules; aggressive write-downs may be challenged in both income and wealth tax.

3. Listed Securities

Listed securities (equities, funds, bonds) are valued at their year-end market value:

• Use the official 31 December price list issued by the Federal Tax Administration (FTA) for Swiss and many foreign securities.
• If securities are traded but not in the FTA list, use the closing price from a recognised exchange.
• Accrued interest on bonds is normally embedded in the year-end value and does not need to be added separately.
• Maintain portfolio statements as at 31 December showing all positions and their CHF value.

4. Unlisted Shares & Private Companies

For unlisted participations, Fribourg aligns with the Swiss Tax Conference (SSK) guidelines on valuation of securities without market price (KS 28 / FTA guidance):

• Where the cantonal tax administration has already set an official tax value per share based on submitted accounts, use that value.
• Otherwise, valuation typically follows the practitioner method, combining:
  • Net asset value (NAV): Book equity adjusted for hidden reserves and off-balance-sheet items.
  • Earnings value: Average sustainable profit multiplied by a capitalisation factor (often in the 7–10 range, depending on sector and risk).
• In many cases, a weighted average (e.g. 1/3 NAV and 2/3 earnings value) is used to derive the taxable value.

Documentation Fribourg typically expects:

• Financial statements for the last 2–3 years.
• Explanation of exceptional items, restructurings and non-recurring income or expenses.
• Consistency of valuation across shareholders and across tax years.

5. Life & Annuity Insurance

Life and annuity insurance contracts with a savings component form part of taxable wealth in Fribourg:

• Life insurance policies are included at their surrender value (valeur de rachat / Rückkaufswert) at 31 December.
• Refundable annuity contracts are treated similarly when they have a surrender value.
• Pure risk policies without surrender value are generally not included in wealth tax.
• Pillar 2 and pillar 3a pension assets remain exempt from wealth tax until payout.

6. Other Assets

All other assets are valued at fair market value unless a specific rule applies:

• Cryptoassets: Value at 31 December using FTA’s crypto reference list or reliable exchange averages; keep a printout of rates used.
• Precious metals: Use bullion prices (e.g. standard gold/silver quotations) at year-end.
• Art & collectibles: Use realistic fair values; for material collections, a professional appraisal or insurance valuation is recommended.
• Motor vehicles, boats, etc.: Typically valued at second-hand market value (e.g. price guides, dealer estimates).
• Cash, bank deposits, receivables: Valued at nominal amount in CHF; for doubtful receivables, the probability of loss may justify value reductions if documented.

7. Foreign Assets & Exchange Rates

Fribourg residents are taxed on worldwide net assets, so foreign property and financial assets must also be included:

• For foreign real estate, the canton explicitly states that the tax value is calculated as (1 × market value + 2 × income value) ÷ 3. Market value is usually based on purchase price or comparable sales; income value is based on sustainable rent.
• Foreign bank accounts, portfolios and other movable assets are valued at their local year-end market or nominal value and then converted into CHF.
• Use the official FTA year-end exchange rates (or the rate accepted by the Fribourg tax administration) for conversion.
• Keep originals in foreign currency plus documentation of the exchange rate used and, for real estate, any local valuation or rental evidence.

8. Liabilities (Debt Deduction)

As in other cantons, Fribourg allows the deduction of debts when determining net wealth:

• Mortgages and secured loans are deductible at their nominal balance as at 31 December.
• Personal loans, credit card balances and overdrafts are also deductible if they represent genuine enforceable obligations.
• For joint or guarantee debts, only the portion economically borne by the taxpayer should be deducted.
• Foreign-currency debts must be converted to CHF using the same year-end exchange rates applied to foreign assets.

9. Documentation & Verification

• Property tax extracts or official notices showing the current tax value for Fribourg real estate.
• Purchase agreements, rental contracts and renovation invoices for real estate, especially where values have changed significantly.
• Year-end bank and portfolio statements with positions and CHF values.
• Insurance certificates showing surrender values for life and annuity contracts.
• Financial statements and valuation memos for unlisted companies and substantial business assets.
• Evidence of foreign asset values and exchange rates used (e.g. FTA FX list printout).

10. Planning Takeaways

• Real estate: The weighted formula for tax value (1 × market + 2 × income value) means rental yield heavily influences the taxable base, especially for foreign property.
• Business assets: Because values follow the income tax balance sheet, accounting decisions (depreciation, hidden reserves) directly affect both income and wealth tax.
• Cross-border portfolios: Consistent use of FTA price and FX lists reduces the risk of queries and allows easier comparison across cantons and countries.
• Allowances: Combine careful valuation with Fribourg’s thresholds and deductions when modelling effective wealth tax using the Wealth Tax Calculator.
• Succession & inheritance: Align wealth tax values with those used for Fribourg inheritance tax and gifting strategies to avoid mismatches between lifetime and death-related valuations.