The Valais Loi fiscale (LF) defines the wealth tax (impôt sur la fortune) in Articles 53bis and following. Taxable wealth comprises all movable and immovable assets, business assets and certain insurance contracts. As a starting point, wealth is valued at fair market value (valeur vénale) at 31 December, subject to special rules for real estate, agricultural property and specific financial assets.

Net wealth is determined by subtracting deductible debts from gross assets. For the calculation of taxable wealth, Valais grants a basic allowance of CHF 30,000 for single taxpayers and CHF 60,000 for couples and single parents with dependent children, before applying the progressive wealth tax rates. Further municipal multipliers apply on top of the cantonal tax.

1. General Valuation Principle

Article 53bis LF defines taxable wealth as the sum of all movable and immovable assets, and states that wealth is in principle valued at fair market value (valeur vénale), unless specific provisions provide another method.

• Taxable wealth object: all movable and immovable assets, including real estate, business assets, securities, life insurance with surrender value and other rights with economic value.
• Fair market value: the price that could realistically be obtained between independent parties under normal conditions.
• Special rules: for real estate, agricultural and forestry property, securities, business assets, life insurance and livestock, the LF contains specific valuation rules (Arts. 55–57 LF).
• Household furniture and everyday personal belongings are not taxable wealth.

2. Real Estate

Valais distinguishes between non-agricultural property and agricultural/forestry property. The rules are set out in Art. 55 LF (Evaluation de la fortune immobilière).

2.1 Non-agricultural property

• Non-agricultural real estate (residential, commercial, investment property) is valued at its fair market value (valeur vénale).
• The law explicitly allows the earnings value (valeur de rendement) to be taken into account appropriately when determining market value, particularly for income-generating property.
• In practice, the tax authorities determine a tax value based on market data and earnings capacity; this value is used consistently for wealth tax and other property-related taxes.
• Major renovations, changes of use or significant market movements can justify an updated valuation, often initiated through a formal appraisal.

2.2 Agricultural & forestry property

• Property used for agriculture or forestry is valued at its earnings value (valeur de rendement) rather than open-market value.
• Earnings value is determined using specific cantonal and federal rules that take into account sustainable agricultural income, production conditions and legal restrictions on sale.
• If agricultural land is no longer genuinely used for agriculture or forestry, but held as an investment or for development, the tax administration may treat it as non-agricultural real estate and value it at market value instead.

3. Listed Securities & Financial Investments

Article 56 LF (Evaluation de la fortune mobilière) provides specific rules for movable wealth, including listed securities.

• Listed shares, bonds, ETFs and funds are valued at their fair market value, defined in the LF as the average market price over the last month of the tax period.
• In practice, taxpayers typically rely on the Federal Tax Administration (FTA) price list or the tax values in bank year-end statements, which already reflect the accepted tax value.
• Foreign-currency securities are converted into CHF using the official FTA year-end exchange rates.
• Accrued interest on bonds is normally included in the quoted value or shown separately in bank statements and is part of taxable wealth.

4. Unlisted Shares & Private Companies

For unlisted participations (private company shares, GmbH interests, cooperative shares), Valais applies the national Swiss Tax Conference (SSK) practice as reflected in Art. 56 LF.

• Unlisted securities are valued based on a combination of:
  • Intrinsic value: essentially net asset value (book equity adjusted for hidden reserves and off-balance-sheet items).
  • Earnings value: capitalised sustainable profit, taking into account the company’s risk profile.
• The law explicitly refers to using both intrinsic value and earnings value; in practice, a weighted average (often 1/3 NAV and 2/3 earnings value) is applied, following SSK circular KS 28.
• Where another canton (usually the company’s seat canton) has published an official tax value per share, the Valais tax administration will generally adopt that value for Valais-resident shareholders.
• Maintain 2–3 years of financial statements and, ideally, a short valuation memo; the tax administration expects consistent valuation across shareholders and years.

5. Business Assets & Livestock

Article 56 LF distinguishes between commercial movable assets and securities.

• Commercial movable assets (machinery, vehicles, inventory, equipment) that form part of business wealth are valued at their value relevant for income tax — i.e. tax book values.
• Hidden reserves created via depreciation or provisions remain embedded; they are not added back for wealth tax as long as the accounts are tax-accepted.
• Livestock is valued at a unitary value that reflects an average of fair market value and earnings value; the Valais Chamber of Agriculture is consulted for setting these unit values.
• Business real estate is subject to the real estate valuation rules (section 2), even if carried at a different book value in the accounts.

6. Life & Annuity Insurance

Valais explicitly regulates life insurance and annuity policies in Art. 56 LF.

• Life insurance policies are valued at their surrender value (valeur de rachat) as at 31 December.
• Annuity insurance contracts that are capable of surrender are treated as life insurance and likewise valued at their surrender value as long as the annuity payments are deferred.
• Pure risk insurance without a surrender value is not included in taxable wealth.
• Occupational pension assets (2nd pillar) and tied 3rd pillar (3a) savings remain exempt from wealth tax until payout, as under general Swiss practice.

7. Other Movable Assets

Assets not covered by the specific categories above fall under the general fair market value principle in Art. 53bis LF and the more detailed rules in Art. 56 LF.

• Cash, bank and postal accounts: nominal CHF balances at 31 December.
• Receivables: nominal value; doubtful claims and disputed rights may be valued taking into account the probability of recovery.
• Cryptoassets: value at 31 December using the FTA’s crypto list or prices from a recognised exchange; convert foreign-currency values into CHF using official year-end FX rates.
• Precious metals: bullion and investment coins at year-end market prices.
• Art, jewellery, collectibles, boats, aircraft, “toy” vehicles: realistic market value; for substantial collections, appraisals or insurance values are advisable.
• Household furniture and ordinary personal effects are specifically excluded from taxable wealth; only exceptional concentrations of value merit separate declaration.

8. Foreign Assets & Exchange Rates

Valais residents are wealth-taxed on their worldwide net wealth. Foreign assets must be included and converted to CHF.

• Foreign bank accounts and portfolios: use local year-end balances or portfolio values, converted into CHF using the FTA 31 December exchange rates.
• Foreign real estate: usually valued at foreign market value or official tax value that the Valais tax administration accepts as a proxy; convert into CHF at year-end FX rates.
• Foreign insurance and pensions: treat like Swiss arrangements — savings-type policies at surrender value, occupational pensions generally exempt until payout.
• Retain foreign documentation (tax returns, valuations, statements) and FX calculations in case the Valais tax office requires evidence.

9. Liabilities & Net Wealth

Wealth tax in Valais is levied on net wealth. Article 58 LF sets the rules for debts (passifs).

• Debts for which the taxpayer alone is liable are taken into account at their full nominal amount.
• Other debts, such as joint and several liabilities and guarantees, are deductible only to the extent that the taxpayer must effectively bear them.
• Obligations to pay an annuity can be treated as a deductible debt, valued at the present value of the annuity, where they are onerous and not based on family law obligations.
• Foreign-currency debts are converted into CHF using the same official FX rates applied to foreign assets.

The result is net wealth. For the wealth tax calculation, net wealth is reduced by the Valais allowances (CHF 30,000 for single taxpayers and CHF 60,000 for couples and certain single parents), and the progressive 1–3‰ cantonal wealth tax scale is applied, followed by communal multipliers.

10. Documentation & Verification

• Real estate: property valuation notices, purchase contracts, renovation invoices and correspondence with the tax or valuation office.
• Securities & financial assets: year-end bank and broker statements, including tax valuations and FX details.
• Business assets: tax balance sheets, income statements and asset registers for self-employed businesses and partnerships.
• Insurance: year-end policy statements showing surrender values for life and annuity contracts, and status reports for pensions.
• Foreign assets: local tax returns, valuations and account statements plus evidence of the FX rates used for conversion.
• Liabilities: mortgage statements, loan agreements and confirmations of balances at 31 December, plus documentation for annuity obligations.

11. Planning Takeaways

• Market vs earnings value for real estate: For non-agricultural property, valeur vénale is decisive, but earnings value can influence the final number. For agricultural and forestry property, earnings value is central and usually lower than full market value.
• Private companies: Because unlisted shares rely on intrinsic and earnings value, up-to-date accounts and a coherent valuation model (aligned with SSK KS 28) are crucial.
• Business vs private wealth: Commercial assets are taken at tax book values, so accounting policy (depreciation, reserves) and asset location (private vs business) directly impact the wealth tax base.
• Insurance & pensions: Surrender values of life and annuity policies can be significant; these should be considered in overall wealth and inheritance planning.
• Allowances and progressive rates: With allowances of CHF 30,000 / 60,000 and a 1–3‰ scale, precise valuation and debt allocation around these thresholds can materially change the effective burden.
• Scenario modelling: Use the Wealth Tax Calculator to project the impact of property purchases, business exits, inheritances or moves on your Valais wealth tax exposure.