In the Canton of Ticino, the wealth tax (imposta sulla sostanza) for individuals is based on net wealth as at 31 December. The cantonal tax law (Legge tributaria, LT), the law on official valuation of real estate (Legge sulla stima ufficiale della sostanza immobiliare) and the annual instructions for individuals (Istruzioni PF) define how assets and liabilities must be valued for wealth tax purposes.

As a starting point, assets are valued at fair market value (valore venale / valore di mercato). For real estate, Ticino uses an official valuation (valore ufficiale di stima) as the tax base, while securities and other financial assets follow federal valuation lists. Net wealth is then reduced by Ticino’s personal allowances before applying the progressive wealth tax scale.

1. General Valuation Principle

Ticino follows the federal harmonisation framework for wealth tax, with some cantonal particularities:

• General rule: Assets (attivi) are valued at their fair market value at the end of the tax period or at the end of tax liability unless specific rules apply (e.g. for real estate, insurance).
• Business assets: Assets invested in a business or agricultural enterprise are valued at the values relevant for income tax (tax balance sheet values), with hidden reserves remaining embedded as long as the accounts are accepted.
• Taxable wealth object: Ticino’s wealth tax covers movable and immovable assets, business wealth, and surrenderable life and annuity insurance contracts.
• Household goods and everyday personal effects are generally not wealth-taxable; only unusual concentrations of value (e.g. major art collections) are relevant.

2. Real Estate

Real estate (sostanza immobiliare) is valued using the Ticino system of official valuations. A separate cantonal law regulates the official appraisal of real estate and states that the official valuation serves as the basis for public taxes.

2.1 Official valuation (valore ufficiale di stima)

• The values for real estate are determined through an official valuation process and recorded as official valuation (valore ufficiale di stima).
• According to the Ticino instructions for individuals, the value to be reported in the tax return is the official valuation in force at 31 December of the tax year (or at the end of tax liability).
• The official valuation is generally fixed for a period (e.g. 20 years) and is not intended to track short-term market fluctuations, but it forms the binding tax base for wealth tax, income from real estate and other property-related taxes.
• The land registry and valuation office issue valuation notices; these should be retained as primary documentation for wealth tax.

2.2 Market value and updates

• The official valuation is designed to approximate a long-term market-consistent value, but individual properties may diverge from current market prices.
• When major changes occur (new construction, significant renovations, subdivision, change of use), an updated official valuation can be triggered, either by the authorities or on request.
• For planning, it is useful to compare the official valuation with an estimated market price; if the valuation is disproportionately high, reviewing the appraisal with the valuation office may be appropriate.

2.3 Usufruct and similar rights

• Where a person holds an usufruct right over a property, the usufructuary typically declares the official valuation of the property as part of their taxable wealth and the imputed rental value or rental income as income.
• In such cases, related debts may be allocated to the usufructuary for wealth tax purposes, depending on how economic ownership is structured.

3. Listed Securities

For listed securities, Ticino applies the standard Swiss approach, using official price lists to ensure uniform valuation across cantons.

• Exchange-listed shares, bonds, ETFs and funds are valued at their market price on 31 December of the tax year.
• Taxpayers normally rely on the Federal Tax Administration (FTA) year-end price list (Steuerkursliste / elenco dei corsi fiscali) or the values shown in bank tax statements.
• For foreign-currency securities, the year-end market price is converted into CHF using the official FTA 31 December exchange rates.
• Where a listed security is missing from the FTA list, the closing price on a recognised exchange at year-end (or a reasonable average for thinly traded stocks) can be used.

4. Unlisted Shares & Private Companies

For unlisted participations (private company shares, GmbH interests, cooperative shares), Ticino follows the Swiss Tax Conference (SSK) guidance on securities without a market price (KS 28) and generally aligns with the practice in the canton where the company is resident.

• If the canton of the company’s seat has set an official wealth tax value per share, Ticino typically adopts this value for its residents.
• Otherwise, unlisted shares are valued using the practitioner method, which combines:
  • Net asset value (NAV): book equity adjusted for hidden reserves and off-balance items.
  • Earnings value: sustainable average profit capitalised at a rate that reflects the company’s risk profile and industry.
• The final taxable value is usually a weighted average of NAV and earnings value (commonly 1/3 NAV and 2/3 earnings value), unless specific circumstances justify another weighting.
• The Ticino tax administration expects consistency of valuation across shareholders and years; significant changes in value should be supported by financial data and a short valuation memo.

5. Business Assets & Intangibles

For self-employed taxpayers and partners in partnerships (impresa individuale, società di persone), business assets are valued in line with income tax:

• Movable business assets (inventory, machinery, operating vehicles, equipment) and intangibles (capitalised goodwill, patents, trademarks, software) are taken at their tax book values after depreciation and provisions recognised by the tax authorities.
• Hidden reserves arising from depreciation or provisions remain embedded; there is no separate wealth tax uplift as long as the accounts are tax-accepted.
• Business real estate appears in the accounts at book value, but underlying valuations are derived from the official valuation framework for real estate (see section 2).
• For agricultural businesses, movable agricultural assets are also valued at income-tax values, while the land and required buildings follow the rules for agricultural property.

6. Life Insurance, Annuities & Pensions

Ticino follows the general Swiss approach for life insurance and annuity policies when determining taxable wealth.

• Capital life insurance policies and refundable annuity contracts are included at their surrender value (valore di riscatto) as at 31 December, including any bonuses.
• Pure risk insurance without a surrender value is not wealth-taxable.
• Occupational pension assets (2nd pillar) and tied retirement savings (pillar 3a) are exempt from wealth tax until payout, even though providers issue statements showing vested-benefits values.
• Year-end policy statements from insurers usually show the surrender value; these are the relevant figures for the Ticino wealth tax return.

7. Other Movable Assets

All other assets not specifically covered above must still be declared at their fair market value at year-end:

• Cash, bank and postal accounts: nominal CHF balances at 31 December.
• Receivables: nominal value; for clearly doubtful or disputed claims, a lower value can be justified where the loss risk is documented.
• Cryptoassets: value at 31 December using prices from a recognised exchange or from the FTA’s crypto list, converted into CHF where the asset is 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 values, based on price guides or dealer quotes; collectors’ vehicles should be valued realistically rather than at token amounts.
• Normal household contents and everyday personal items are generally not itemised unless there is an unusually high concentration of value.

8. Foreign Assets & Exchange Rates

Ticino residents are taxed on their worldwide net wealth. Foreign assets therefore enter the wealth tax base, subject to allocation rules between cantons and states.

• Foreign bank accounts and portfolios: value at local year-end balances or market values, then convert to CHF using the official FTA 31 December exchange rates.
• Foreign real estate: typically valued at local market values or official foreign tax valuations accepted by the Ticino tax administration; the resulting CHF value is used to determine overall net wealth and to allocate taxing rights.
• Foreign life insurance and pensions: savings-type policies are taxed at surrender value, whereas genuine occupational pension entitlements remain exempt until payout.
• The Ticino tax authorities can adjust foreign property values if they appear inconsistent, for example by referencing foreign cadastral values or other objective valuations.
• Keep foreign statements, valuation reports and a record of FX rates used, as the tax office may request supporting evidence.

9. Liabilities & Net Wealth

Ticino levies wealth tax on net wealth. In broad terms, the process is: gross wealth minus debts = net wealth; net wealth minus personal 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 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.
• Debts denominated in foreign currencies are converted into CHF using the same FTA year-end exchange rates applied to assets in that currency.

The resulting net wealth is then reduced by Ticino’s wealth tax allowances (see the Allowances page for current amounts). Progressive wealth tax rates between roughly 1‰ and 3‰ apply up to a defined level of net wealth, with a proportional rate of about 2.5‰ above higher thresholds, before cantonal and communal multipliers.

10. Planning Takeaways

• Official property values drive the base: In Ticino, the valore ufficiale di stima is the cornerstone of wealth taxation for real estate. Monitoring valuations and understanding when an update is appropriate are central to wealth tax planning.
• Private companies and business assets: Practitioner-method valuations, tax balance sheet values and hidden reserves can materially affect the wealth tax base for entrepreneurs; documentation is key.
• Insurance and pensions: Surrender values of life and annuity contracts can be significant. Coordinating insurance planning with wealth, income and inheritance tax is particularly important in Ticino.
• International dimension: With worldwide net wealth in scope, consistent valuation of foreign real estate and portfolios – and proof of FX rates – is essential for avoiding double taxation and for correct allocation.
• Modelling scenarios: Use the Wealth Tax Calculator with Ticino’s allowances and progressive rates to test how property purchases, business exits, inheritances or relocations influence your long-term wealth tax burden.