Nidwalden Wealth Tax Cases

Nidwalden Wealth Tax: Cases & Worked Examples

Illustrative computations showing how Nidwalden’s proportional 0.25‰ wealth tax and comparatively low municipal tax rates play out in communes such as Stans, Hergiswil, Ennetbürgen, Stansstad and Buochs.

Nidwalden is the only Swiss canton with a strictly proportional wealth tax: the simple tax on taxable net wealth is a flat 0.25‰ (0.025%), regardless of wealth level. The final amount is:

Wealth tax = taxable net wealth × 0.25‰ × combined cantonal & municipal tax rate (Steuerfuss).

In practice, municipal tax rates range roughly from 4.05 to 5.16 units (without churches), resulting in overall effective wealth tax rates typically around 0.10–0.13% of net wealth in most communes.

Standard allowances (rounded) are: CHF 35,000 for singles, CHF 70,000 for married couples and CHF 15,000 per child. The examples below use indicative 2025-style values for planning illustration only.

All numbers rounded; church tax ignored. Certain qualifying participations may benefit from a reduced 0.20‰ rate, which is not modelled in full detail here.

Case A — Single Professional in Hergiswil (Low-Tax Commune)

Commune: Hergiswil (Steuerfuss ≈ 4.05)
Assets: CHF 1,000,000 (securities & cash)
Liabilities: none
Allowance: CHF 35,000 (single)

Net wealth	CHF 1,000,000
Less allowance	− CHF 35,000
Taxable net wealth	CHF 965,000
Simple wealth tax (0.25‰)	≈ CHF 241
Steuerfuss Hergiswil (≈ 4.05)	× 4.05
Wealth tax due	≈ CHF 980
Effective rate	≈ 0.10% of net wealth

Observation: Even at CHF 1m net wealth, Hergiswil’s linear 0.25‰ system leads to a very low absolute tax amount compared to most other Swiss cantons.

Case B — Married Couple with Two Children in Stans (Cantonal Capital)

Commune: Stans (Steuerfuss ≈ 4.81)
Assets: CHF 2,500,000 (family home + portfolios)
Liabilities: CHF 900,000 mortgage
Allowances: CHF 70,000 (married) + CHF 30,000 (two children) = CHF 100,000

Net wealth	CHF 1,600,000
Less allowances	− CHF 100,000
Taxable wealth	CHF 1,500,000
Simple wealth tax (0.25‰)	CHF 375
Steuerfuss Stans (≈ 4.81)	× 4.81
Estimated wealth tax	≈ CHF 1,805
Effective rate	≈ 0.11% of net wealth

Planning angle: With a flat rate, the key levers are the mortgage (directly reducing taxable wealth) and the communal Steuerfuss. There is no progression or step effect at higher wealth levels.

Case C — Entrepreneur with Private Company Shares in Ennetbürgen

Commune: Ennetbürgen (Steuerfuss ≈ 4.16)
Unlisted shares: CHF 3,500,000 (practitioner-method valuation)
Other assets: CHF 700,000 (cash & listed portfolios)
Liabilities: CHF 1,500,000 (business and private loans)
Filing status: Married, no children (allowance CHF 70,000)

Gross assets	CHF 4,200,000
Less liabilities	− CHF 1,500,000
Net wealth	CHF 2,700,000
Less allowance	− CHF 70,000
Taxable wealth	CHF 2,630,000
Simple wealth tax (0.25‰)	≈ CHF 658
Steuerfuss Ennetbürgen (≈ 4.16)	× 4.16
Total wealth tax	≈ CHF 2,735
Effective rate	≈ 0.10% of net wealth

In practice, qualifying participations (≥10%) may benefit from a slightly reduced 0.20‰ rate on the share component, lowering the result further. This example uses the standard 0.25‰ for simplicity.

Planning angle: For entrepreneurs, Nidwalden offers a highly predictable wealth tax burden. Valuation and leverage matter, but there is no progressive “penalty” at higher levels of net wealth.

Case D — Nonresident Owning an Apartment in Buochs

Tax nexus: Nonresident with Nidwalden property only
Property value: CHF 1,200,000 (wealth-tax value)
Mortgage: CHF 800,000 (loan economically tied to the property)
Commune: Buochs (Steuerfuss ≈ 4.93)
Other Swiss assets: none
Allowance: single allowance CHF 35,000 allocated to NW-situs wealth (simplified)

Swiss-situs net wealth	CHF 400,000
Less allowance (simplified)	− CHF 35,000
Taxable Swiss-situs wealth	CHF 365,000
Simple wealth tax (0.25‰)	≈ CHF 91
Steuerfuss Buochs (≈ 4.93)	× 4.93
Estimated wealth tax	≈ CHF 450
Effective rate on Swiss-situs wealth	≈ 0.11%

Tip: For nonresidents, only the portion of debt economically linked to the Nidwalden property is deductible in Nidwalden. Global assets and liabilities remain relevant primarily in the country of residence.

Case E — Comparison: Hergiswil vs. Stans vs. Buochs

Single taxpayer with CHF 2,000,000 taxable net wealth (after allowances and debts)

	Hergiswil (4.05)	Stans (4.81)	Buochs (4.93)
Simple wealth tax (0.25‰ of CHF 2,000,000)	CHF 500
Steuerfuss (without churches)	4.05	4.81	4.93
Total wealth tax	≈ CHF 2,025	≈ CHF 2,405	≈ CHF 2,465
Effective rate (on taxable wealth)	≈ 0.10%	≈ 0.12%	≈ 0.12%
Annual difference	Spread of roughly CHF 400–450 per year between a low-tax commune (Hergiswil) and a higher-tax option (Buochs) at identical taxable wealth

Note: Because Nidwalden’s rate is proportional, all communes share the same 0.25‰ base. The only intra-canton lever is the Steuerfuss, which still creates a visible, though modest, spread in annual wealth tax at higher wealth levels.

Key Takeaways

Nidwalden is a very low wealth tax canton, with effective rates often around 0.10–0.13% of net wealth in many communes.
The wealth tax is strictly proportional (0.25‰ simple tax): there is no progression as wealth increases.
Municipal tax rates (Steuerfüsse) are the main intra-canton planning lever; Hergiswil and Ennetbürgen are slightly lighter than communes with higher Steuerfüsse.
Standard allowances (CHF 35,000 for singles, CHF 70,000 for married couples and CHF 15,000 per child) keep modest wealth lightly taxed.
Mortgages and other deductible liabilities reduce taxable net wealth linearly, making leverage an important planning tool for property owners.
For entrepreneurs, consistent valuation of private company participations and potential use of the reduced 0.20‰ rate are central to managing the wealth tax base.
Nonresidents are taxed only on Nidwalden-situs wealth, with debt allocation playing a key role in determining the Swiss taxable base.