Nonresidents are subject to Valais wealth tax on assets that are economically connected to the canton. In practice, this limited tax liability mainly concerns real estate and business assets located in Valais, while foreign portfolios and movable property held abroad remain outside the Valais wealth-tax base.

Valais applies a progressive wealth tax with cantonal and communal components and provides specific relief where the combined burden on income and wealth would become excessive. This guide summarises the scope, valuation framework, and compliance requirements for the 2025 tax year for nonresident individuals with assets in the canton of Valais.

1. Scope of Limited Tax Liability

A nonresident becomes liable for Valais wealth tax if they hold any of the following:

• Residential or commercial real estate situated in the canton of Valais
• Land or agricultural property located within Valais
• Permanent establishments or fixed places of business (e.g., workshops, offices, hotels, restaurants, ski operations) in the canton
• Business assets allocated to a Valais branch or permanent establishment

Assets outside Switzerland — such as foreign securities, overseas real estate, and non-Swiss bank accounts — are excluded from the Valais wealth-tax base, although they may still be relevant in the country of residence for rate progression or reporting.

2. Valuation Basis

Valais applies cantonal valuation rules harmonised with federal law but implemented locally by the cantonal tax administration:

• Real estate: Cantonal tax value (valeur fiscale), generally based on the cadastral value notified by the commune where the property is located. This tax value is usually lower than open-market value.
• Securities and bank assets: Year-end tax value using official federal security valuation lists and foreign exchange rates.
• Business assets: Book or fair value according to Swiss accounting standards, with Valais-specific practice for unlisted shares and participations where relevant.
• Pension assets: Occupational and pillar 3a pension capital is typically exempt from wealth tax until payout.

For nonresident property owners, the valeur fiscale is the key figure for wealth tax and may differ significantly from market price. For more technical detail within this canton, see Valuation Rules.

3. Debt Allocation

Debt allocation for nonresidents in Valais follows the Swiss principle of economic connection combined with proportional allocation:

• Mortgages secured on Valais property are deductible from the wealth-tax value of that property.
• Other debts are deductible only insofar as they can be economically tied to Swiss assets or allocated proportionally across Swiss and foreign assets.
• If the taxpayer owns property in several Swiss cantons, total debt is apportioned based on the relative taxable values of those assets.

Interest on debt is relevant for income tax and is apportioned across jurisdictions by reference to Swiss-sourced assets and income, including inter-cantonal allocation.

4. Allowances & Exemptions

Residents of Valais are subject to wealth tax only above certain net-wealth thresholds; below those amounts, no wealth tax is due. For nonresident taxpayers, the full set of personal and social allowances is often restricted or unavailable, as the cantonal practice focuses on property or business assets in Valais.

Irrespective of residence status, certain items are generally excluded from the Valais wealth-tax base:

• Tax-exempt pension capital (2nd pillar and pillar 3a) until withdrawal
• Normal household goods and personal belongings
• Certain non-surrenderable rights and expectations, under harmonised cantonal law

Valais also operates a specific relief mechanism limiting the combined burden of income and wealth tax where the overall effective rate would become confiscatory. For planning, however, nonresidents should assume the regular progressive scale applies unless the tax office confirms a reduction.

5. Double Tax Treaties

Under Switzerland’s double tax treaties, taxation of immovable property is typically assigned to the state in which the property is located. As a result, Valais retains the right to tax real estate and related business premises situated in the canton, even when the owner is resident abroad.

Relief is usually provided in the country of residence through:

• Exemption with progression, or
• Foreign tax credit for Valais wealth tax against home-country wealth or property taxes.

It is important to check the specific treaty between Switzerland and your country of residence and to retain Valais tax assessments and receipts as proof of Swiss tax paid.

6. Swiss Tax Representative

Nonresidents will typically need to provide a Swiss correspondence address or appoint a tax representative when dealing with the Valais tax authorities.

• Swiss fiduciaries, tax advisors, or lawyers can act as authorised representatives.
• Official correspondence and assessments are generally issued in French or German, depending on the commune.
• Using a representative helps manage deadlines, language issues, and any appeals or objections.

7. Filing & Compliance

Nonresident owners of property or business assets in Valais file a limited Swiss tax return covering Swiss-situs income and wealth. The wealth tax portion focuses on net taxable assets situated in Valais as at 31 December.

• Official confirmation of the property’s tax value (valeur fiscale) or cadastral valuation
• Mortgage and loan confirmations as of year-end
• Rental income and expense statements for let property
• Business balance sheet and asset schedules where a Valais permanent establishment exists

Filing deadlines broadly align with those for resident taxpayers. Extensions are generally available upon request, often submitted via a Swiss representative.

8. Example — Nonresident Alpine Property Owner

Profile: Resident of France, owns a holiday chalet in the canton of Valais.

• Tax value (valeur fiscale): CHF 950,000
• Mortgage balance: CHF 600,000
• Progressive wealth tax scale: between 1‰ and 3‰ (illustrative effective rate used here: 2.5‰ on this level of wealth)
• Illustrative combined cantonal/communal indexation factor: 1.65 (165 % of simple tax; within the range permitted for communes)

Step 1 — Net taxable wealth (Valais): CHF 950,000 − CHF 600,000 = CHF 350,000
Step 2 — Simple wealth tax (illustrative): CHF 350,000 × 2.5‰ = CHF 875
Step 3 — Applying communal indexation: CHF 875 × 1.65 = CHF 1,443.75
→ Indicative effective burden of about 0.41 % of net taxable wealth (figures are illustrative only; actual rates and multipliers depend on the commune and year, and reliefs may apply in high-wealth, low-income cases).

9. Ending Valais Tax Liability

Wealth tax liability in Valais normally ends when the property or business assets in the canton are sold, transferred, or otherwise disposed of. A final limited tax return must be filed and any remaining wealth tax and property gains taxes settled.

The Valais tax office should be notified promptly of the disposal to avoid continued assessments based on outdated ownership data and to ensure proper closure of the account.

10. Planning Insights for Nonresidents

• Obtain an estimate of the Valais valeur fiscale and local communal indexation factor before acquiring property.
• Align mortgage structure and debt allocation with broader cross-border wealth, inheritance, and estate planning.
• Review how Valais’s progressive wealth tax and potential “confiscatory” relief interact with home-country wealth or property taxes and relevant double tax treaties.
• Use a Swiss tax representative to manage compliance, coordinate with your home-country advisor, and handle French- or German-language correspondence.