In the canton of St. Gallen, wealth tax (Vermögenssteuer) is levied on an individual’s net wealth as at 31 December. The Steuergesetz (StG) and Steuerverordnung (StV) set out the rules on valuation (Art. 54–61 StG; Art. 30bis–32 StV), as summarised in the cantonal Kantonsblatt. :contentReference[oaicite:0]{index=0}

As a starting point, assets are valued at fair market value (Verkehrswert). For insurance, securities and real estate, special valuations can apply, and business assets are taken at the value relevant for income tax. The tax-free wealth allowance is currently CHF 75,000 per taxpayer plus CHF 20,000 per minor child (Art. 64 StG), and the simple wealth tax rate is 1.7‰ (Art. 65 StG). :contentReference[oaicite:1]{index=1}

1. General Valuation Principle

The St. Gallen Steuergesetz and Kantonsblatt summarise the wealth valuation framework as follows: :contentReference[oaicite:2]{index=2}

• General rule (Art. 54 StG): Assets (Aktiven) are in principle valued at fair market value. This corresponds to the price that could usually be obtained between independent parties under normal conditions.
• Special rules: For insurance, securities and real estate, the law allows distinct valuation methods (e.g. surrender value, market price, earnings value).
• Business assets: For assets invested in a business or agricultural enterprise, the valuation corresponds to the value relevant for income tax (tax balance sheet value).
• Household goods and personal effects are explicitly exempt from wealth tax (Art. 63 StG; Wegleitung). :contentReference[oaicite:3]{index=3}

2. Real Estate

Real estate (unbewegliches Vermögen) is a key cantonal “particularity” in St. Gallen, with distinct rules for ordinary and agricultural property. :contentReference[oaicite:4]{index=4}

2.1 Ordinary real estate: market value

• Under Art. 57 StG, the market value of property corresponds to the average price at which comparable properties (similar size, location and condition) are sold in the area. :contentReference[oaicite:5]{index=5}
• The tax administration determines a tax valuation (Schatzungswert) based on this market value concept; such valuations are used for wealth tax and real estate gains tax.
• For wealth tax, you normally declare the current official tax value notified by the St. Gallen tax office rather than computing a value yourself.
• Where a property has been extended, rebuilt or significantly renovated and the new work is not yet reflected in an official valuation, the Kantonsblatt notes that an 80% uplift of the new/extension costs is added to the existing valuation until a formal reassessment is carried out. :contentReference[oaicite:6]{index=6}

2.2 Agricultural & forestry property

• Under Art. 58 StG, properties falling under the federal bäuerliches Bodenrecht and used predominantly for agriculture or forestry are valued at their earnings value (Ertragswert). :contentReference[oaicite:7]{index=7}
• The earnings value is determined under the specific federal and cantonal rules for agricultural valuation and is typically below full market value.
• If agricultural land is clearly held for investment or development rather than genuine farming or forestry, it may be treated as ordinary property and valued at market value.

3. Listed Securities

For listed securities, St. Gallen follows the standard Swiss approach, as reflected in Art. 54–61 StG and explained in practice-oriented guides. :contentReference[oaicite:8]{index=8}

• Exchange-listed shares, bonds, ETFs and funds are valued at their 31 December market price.
• Taxpayers typically use the Federal Tax Administration (FTA) year-end price list (Steuerkursliste) or the tax values shown on bank year-end statements.
• For foreign-currency securities, the market price is converted into CHF using the official FTA year-end exchange rates.
• Where a listed security is not included in the FTA list, the closing price on a recognised exchange at year-end (or a reasonable average of recent prices for thinly traded securities) is acceptable.

4. Unlisted Shares & Private Companies

For unlisted participations (private company shares, GmbH interests, cooperative shares), St. Gallen applies the nationwide Swiss Tax Conference (SSK) guidance, KS 28, and its own case law confirms the use of the practitioner method. :contentReference[oaicite:9]{index=9}

• Where another canton (usually the company’s seat) has set an official tax value per share, St. Gallen typically adopts this value for residents holding that participation.
• Otherwise, the valuation combines:
  • Net asset value (NAV): book equity adjusted for hidden reserves and off-balance items.
  • Earnings value: sustainable average profit capitalised at an appropriate rate based on the company’s risk and sector.
• The taxable value is generally a weighted average of NAV and earnings value (in many cases 1/3 NAV and 2/3 earnings value), in line with KS 28 practice.
• St. Gallen’s administrative and court practice emphasises consistency across shareholders and years; abrupt changes in valuation must be well documented.

In practice you should provide:

• 2–3 years of financial statements (including notes).
• A short valuation memo setting out adjustments, capitalisation factor and any special circumstances.
• Confirmation that all St. Gallen-resident shareholders use the same per-share value.

5. Business Assets & Intangibles

Assets invested in a business or agricultural enterprise are treated as business wealth and valued using the income-tax balance sheet. :contentReference[oaicite:10]{index=10}

• Movable business assets (inventory, machinery, operating vehicles, tools) and intangibles (capitalised goodwill, patents, trademarks) are taken at their tax book values, after depreciation and provisions accepted for income tax.
• Hidden reserves embedded through depreciation or provisions are not separately added back for wealth tax, provided the accounts are accepted by the tax authorities.
• Business real estate appears at book value in the accounts, but the underlying property valuation is still broadly aligned with the valuation framework in section 2.
• Agricultural equipment and livestock forming part of a business are also valued at tax book values; earnings-value rules apply primarily to the land and necessary buildings.

6. Life & Annuity Insurance

St. Gallen treats life insurance and annuities with a savings component as part of taxable wealth, with explicit rules in the Steuergesetz and in the Wegleitung. :contentReference[oaicite:11]{index=11}

• Life insurance policies with a surrender value are included at their surrender value (Rückkaufswert) at 31 December.
• Refundable annuity policies are treated in the same way and taxed at surrender value.
• Pure risk insurance and non-refundable annuities are not wealth-taxable.
• Occupational pension assets (2nd pillar) and tied 3rd pillar (3a) savings are exempt from wealth tax until payout, even though statements show a vested benefits value.

7. Other Movable Assets

All remaining assets must be declared at their fair market value at year-end unless a specific exemption applies. :contentReference[oaicite:12]{index=12}

• Cash and bank deposits: nominal CHF balances at 31 December.
• Receivables: nominal value; for disputed or clearly doubtful claims, a lower value can be used where the loss risk is documented.
• Cryptoassets: 31 December value from a recognised exchange or the FTA crypto list, converted into CHF if quoted in foreign currency.
• Precious metals: bullion and investment coins at year-end market prices.
• Art, jewellery and collectibles: realistic market value; for substantial collections, recent appraisals or insurance values are advisable.
• Motor vehicles, boats, aircraft: second-hand market value based on price guides or dealer quotes.
• Household goods & personal effects: normal household contents and personal-use items (furniture, clothes, basic jewellery, sports equipment etc.) are exempt from wealth tax and do not need to be declared, unless there is an unusually high concentration of value. :contentReference[oaicite:13]{index=13}

8. Foreign Assets & Exchange Rates

St. Gallen residents are taxed on their worldwide net wealth, so foreign assets also enter the wealth tax base and are then allocated for inter-cantonal and international purposes. :contentReference[oaicite:14]{index=14}

• Foreign bank accounts and portfolios: use local year-end balances or market values, converted into CHF with the official FTA 31 December exchange rates.
• Foreign real estate: generally valued at local market value or official tax value accepted by the St. Gallen tax authorities, then converted to CHF; these figures are also used for allocation between Switzerland and the foreign state.
• Foreign insurance and pensions: follow the same principles as Swiss arrangements (surrender value for savings-type policies; exemption for genuine occupational pensions until payout).
• Keep foreign documentation (statements, valuations, FX rates) in case the St. Gallen tax office requests evidence supporting the CHF figures.

9. Liabilities & Net Wealth

Wealth tax in St. Gallen is levied on net wealth. The process in Art. 62–65 StG and the Kantonsblatt is: gross wealth minus debts gives net wealth, net wealth minus allowances gives taxable wealth. :contentReference[oaicite:15]{index=15}

• 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 where they represent genuine, legally enforceable obligations.
• Joint debts, guarantees and similar obligations are deductible only to the extent the taxpayer must economically bear them.
• Foreign-currency debts are converted into CHF using the same year-end FX rates applied to assets in that currency.

From net wealth you then deduct the St. Gallen wealth tax allowances (CHF 75,000 per taxpayer plus CHF 20,000 per qualifying child) to determine taxable wealth, which is taxed at the linear 1.7‰ rate before cantonal/communal multipliers. :contentReference[oaicite:16]{index=16}

10. Documentation & Verification

• Real estate: Official valuation notices, purchase contracts and invoices for new builds, renovations and extensions.
• Securities: Year-end bank and broker statements, including the full Wertschriften- und Guthabenverzeichnis with 31 December values and FTA-based tax prices.
• Business assets: Tax balance sheets and income statements for sole proprietorships and partnerships, showing business assets and liabilities.
• Insurance: Annual certificates with surrender values for life and annuity policies and the status of 2nd and 3rd pillar accounts.
• Foreign assets: Account statements, local property valuations and evidence of the FX rates used.
• Debt: Mortgage statements, loan contracts and bank confirmations of outstanding balances.

11. Planning Takeaways

• Property-driven base: With market- and earnings-value-based valuations and the 80% uplift rule for new builds, real estate valuations are central to the St. Gallen wealth tax base.
• Agricultural vs. non-agricultural: The distinction between genuine agricultural/forestry use (earnings value) and investment/development motives (market value) can substantially change the taxable base.
• Private companies: KS 28 and St. Gallen case law around the practitioner method make thorough documentation of sustainable earnings and NAV crucial.
• Business vs. private wealth: Because business assets follow tax balance sheet values, decisions on depreciation, reserves and holding structures (e.g. where to park real estate) directly affect wealth tax.
• Leverage allowances and linear rate: Combine accurate valuations, debt allocation and the CHF 75,000 + CHF 20,000-per-child allowances with the linear 1.7‰ rate using the Wealth Tax Calculator to model the impact of major transactions, inheritances or relocations.