In the Canton of Solothurn, wealth tax (Vermögenssteuer) is levied on an individual’s net wealth as at 31 December. The cantonal tax law (Steuergesetz, §§ 60–71) and the implementing ordinance (VVStG, §§ 33–35) define how assets and liabilities are valued, as summarised in the Solothurn Kantonsblatt for natural persons.

As a starting point, assets are generally valued at fair market value (Verkehrswert). For insurance, securities and real estate, Solothurn law provides specific rules, and business assets are valued at the amounts used for income tax purposes. Net wealth is then reduced by social allowances (currently CHF 100,000 for certain married and single-parent taxpayers, CHF 60,000 for others plus CHF 20,000 per child) before the progressive wealth tax scale (approx. 0.75–1.3‰) is applied.

1. General Valuation Principle

The Solothurn Kantonsblatt summarises the wealth valuation framework as follows:

• General rule: In line with federal harmonisation law, assets (actives) are generally valued at fair market value. Fair market value is the price achievable between independent parties under normal conditions.
• Special rules apply to insurance, securities and real estate, where the tax law prescribes distinct valuation methods (Katasterwert for property, yield-based rule for certain securities).
• Business assets (Geschäftsvermögen) are valued at the amounts relevant for income tax – in practice, the tax balance sheet values of the self-employed or partnership business.

2. Real Estate

Real estate is one of Solothurn’s key cantonal particularities for wealth tax. The law distinguishes between ordinary property and agricultural property.

2.1 Ordinary property: cadastral value

• Under § 62 Steuergesetz, properties and buildings are valued at their cadastral value (Katasterwert).
• The cadastral value is determined by taking both market value and earnings value into account. Public-law restrictions (e.g. zoning constraints, nature and heritage protection) must be appropriately considered when fixing the value.
• The cantonal parliament (Kantonsrat) determines in more detail how market value and earnings value are to be weighted for different types of property and buildings.
• For wealth tax returns, the latest cadastral value notice is the decisive reference for Solothurn-located property.

2.2 Agricultural property

• For properties covered by the federal Bundesgesetz über das bäuerliche Bodenrecht (BGBB), § 63 Steuergesetz provides that the cadastral value equals the earnings value.
• This earnings value is at the same time the tax value for wealth tax purposes.
• Agricultural property that no longer serves genuine agricultural use or is held for investment may lose access to the earnings-value privilege and be valued like ordinary property.

3. Listed Securities & Yield Rule

Solothurn follows the general Swiss approach for listed securities but adds a specific yield rule for wealth tax values of certain interest-bearing assets and participations.

• As a baseline, listed shares, bonds, ETFs and funds are valued at their 31 December market price, typically using the Federal Tax Administration (FTA) year-end price list or the values on the bank’s tax statement.
• For securities, claims and participation rights in private wealth, § 67 Steuergesetz introduces a Solothurn-specific rule: if the capitalised sum of actual yields in the tax period (using the average savings interest rate at year-end) is lower than fair market value, the wealth tax value is the average of the two (i.e. (market value + capitalised yield value) / 2).
• This rule mitigates high wealth tax values where an asset’s market price is high relative to its sustainable yield (for example, low-yield bonds or equity with unusually low dividends).
• For foreign-currency securities, conversion into CHF uses the official FTA 31 December exchange rates.

4. Unlisted Shares & Private Companies

For unlisted participations (private company shares, GmbH interests, cooperative shares), Solothurn applies the general Swiss practice based on the Swiss Tax Conference (SSK) guidelines:

• The taxable wealth value of participations without a market price is based on the tax-audited results of the two most recent financial years, following the FTA and SSK valuation guidance.
• In practice, this corresponds to the practitioner method (KS 28): a weighted combination of net asset value (NAV) and earnings value.
• Where another canton (often the seat of the company) has determined an official tax value per share, that value is usually applied consistently for Solothurn-resident shareholders.
• The Solothurn tax administration expects consistent valuation across all shareholders and tax years unless material changes in the company’s financial situation justify an update.

Recommended documentation:

• Financial statements for the last two (ideally three) financial years.
• A valuation memo explaining normalisations, capitalisation rate and any exceptional items.
• Confirmation that all Solothurn-resident shareholders use the same per-share value.

5. Business Assets & Movables

For self-employed persons and partners, business assets are valued using the income-tax balance sheet.

• Under § 66(1) Steuergesetz, movable assets belonging to business wealth – such as livestock, inventory, machinery, vehicles, tools, instruments, furniture and securities – are valued at the value relevant for income tax.
• This is typically the tax book value after depreciation and provisions accepted by the Solothurn tax office.
• Hidden reserves created through depreciation or provisions remain embedded and are not automatically uplifted for wealth tax as long as the accounts are accepted.
• Business real estate is reflected at its book value, but in the background its tax value must still be compatible with the cadastral value framework described in section 2.

6. Life Insurance, Annuities & Pensions

Solothurn’s tax law contains explicit rules for insurance and pension rights (§ 69 Steuergesetz, § 35 VVStG):

• Capital life insurance policies are subject to wealth tax at their surrender value (Rückkaufswert) as at 31 December.
• Refundable annuity insurance contracts are treated in the same way – they are wealth-taxable at their surrender value.
• Non-refundable life insurance, pure risk insurance and non-insurance-based life annuities do not fall under wealth tax (§ 35 VVStG).
• Occupational pension assets (2nd pillar) and tied retirement savings (pillar 3a) are exempt from wealth tax as long as they remain bound under the applicable pension rules.

7. Other Assets

All remaining assets must still be declared at their fair market value at year-end, even if no specific Solothurn rule exists:

• Cash and bank deposits: nominal CHF balances at 31 December.
• Receivables: nominal value; for disputed or clearly doubtful claims, a lower value may be used if the loss risk is properly documented.
• Cryptoassets: 31 December values from a recognised exchange or the FTA crypto list, converted into CHF where necessary.
• Precious metals: bullion and investment coins at year-end market prices.
• Art, jewellery and collectibles: realistic market values; for substantial collections, recent appraisals or insurance values are advisable.
• Motor vehicles, boats, aircraft: second-hand market value based on price guides or dealer quotations.
• Ordinary household goods and everyday personal items are generally not itemised; only unusual concentrations of value are explicitly declared.

8. Foreign Assets & Exchange Rates

Solothurn residents are taxed on their worldwide net wealth. Foreign assets must therefore be included in the wealth tax calculation and then allocated according to Swiss and treaty rules.

• Foreign bank accounts and portfolios: value at local year-end nominal or market value and convert to CHF using the official FTA 31 December exchange rates.
• Foreign real estate: value based on local market value or official tax value accepted by the Solothurn tax administration, then convert to CHF. These values are also used for inter-cantonal and international allocation.
• Foreign insurance and pensions: apply the same principles as for Swiss arrangements: savings-type policies at surrender value, genuine occupational pensions exempt until payout.
• Keep original foreign documents and FX evidence, as the Solothurn tax office may request them in a review.

9. Liabilities & Net Wealth

Solothurn taxes net wealth. Under §§ 70–71 Steuergesetz, the process is: gross wealth minus debts = net wealth; net wealth minus social allowances = taxable wealth.

• Mortgages on Swiss and foreign real estate are deductible at their nominal balance as at 31 December.
• Bank loans, private loans, overdrafts and credit card balances are deductible if they represent genuine, legally enforceable liabilities.
• Joint obligations and guarantees are deductible only to the extent the taxpayer must economically bear them.
• Foreign-currency debts are converted into CHF using the same official year-end FX rates used for assets in that currency.

After deducting debts, Solothurn’s social allowances (CHF 100,000 / CHF 60,000 plus CHF 20,000 per child) are applied to determine the taxable wealth. The progressive cantonal wealth tax rates are then combined with municipal multipliers.

10. Documentation & Verification

• Real estate: Cadastral value notices for each Solothurn property; purchase agreements and renovation invoices for major changes not yet reflected in the cadastral value.
• Securities: Year-end bank and broker statements showing positions, market values and total CHF value, plus any yield calculations relevant for the Solothurn yield rule.
• Business assets: Tax balance sheets and income statements for self-employed and partnerships.
• Insurance: Annual certificates showing surrender values of life and annuity policies and the status of 2nd and 3rd pillar accounts.
• Foreign assets: Account statements, local property valuations and evidence of FX rates used.
• Debt: Mortgage statements, bank confirmations and loan agreements stating year-end balances.

11. Planning Takeaways

• Cadastral values drive the base: In Solothurn, wealth tax on real estate is anchored in the Katasterwert. Monitoring and, where needed, challenging this value can materially influence the wealth tax burden.
• Securities and yield rule: The special rule using the average of market value and capitalised yield can soften the wealth tax impact for low-yield assets. Modelling different portfolios through this lens can be worthwhile for larger investors.
• Business vs. private wealth: Because business assets are taken from the tax balance sheet, decisions on depreciation, reserves and where to hold real estate (privately vs. in a business) directly shape the wealth tax base.
• Use of allowances: The relatively generous social allowances (CHF 100,000 / 60,000 plus child allowances) mean that precise valuation and debt allocation around these thresholds can be important for families in the mid-wealth range.
• Scenario modelling: Combine accurate valuations and Solothurn’s progressive rates using the Wealth Tax Calculator to anticipate the impact of major events (property purchases, inheritances, business exits) on Solothurn wealth tax.