Wealth tax in Vaud is progressive and driven by both cantonal base and communal coefficients. Effective planning therefore focuses on the composition and location of assets, financing structure, and the taxpayer’s place of residence within the canton.

1. Commune Selection within Vaud

Communal coefficients in Vaud vary significantly (approx. 0.60–0.85), creating measurable differences in effective tax. Moving between communes within the canton can adjust total wealth tax by up to 20%.

• Lower coefficients: Rolle, Morges, Nyon (≈ 0.60–0.70)
• Higher coefficients: Lausanne, Montreux (≈ 0.75–0.85)

2. Asset Structure Optimisation

• Pension funding: Pillar 2 buy-ins and 3a contributions shift assets into exempt categories.
• Mortgages: Maintain reasonable debt levels on real estate to offset taxable wealth.
• Company participation: Evaluate holding shares in operating or investment structures using the practitioner method valuation.
• International diversification: Non-Swiss real estate is declared for allocation but not taxed in Vaud.
• Gifting strategy: Early intra-family gifts can distribute taxable wealth among multiple taxpayers (subject to gift tax rules).

3. Timing of Events (Cut-off at 31 December)

Vaud assesses wealth at year-end (31 December). Strategic timing of asset transfers, debt payments, or capital contributions before that date can influence the taxable balance.

• Repay mortgages after year-end if aiming to reduce debt deduction effects on interest income.
• Execute pension buy-ins or 3a transfers before 31 December to lock in exemptions.
• Delay inheritances or distributions into the following year when possible.

4. Valuation Management

Ensure that official valuations reflect fair, not excessive, taxable values. For real estate, request updates to outdated valeurs fiscales. For private companies, maintain clear records of financials used for the practitioner method.

• Reassess valuations periodically for consistency with market data.
• Challenge incorrect or outdated fiscal values with supporting evidence.
• Review FTA/SSK methodology annually — thresholds and rates evolve.

5. New Arrivals & Cross-Border Residents

Expats and newcomers can choose their commune strategically before establishing Swiss tax residence. For treaty residents, only Swiss-situs wealth is taxed in Vaud, subject to allocation rules.

• Establish residence in a lower-coefficient commune where practical.
• Ensure clear residency date documentation — taxation begins on the arrival date.
• For lump-sum taxpayers (forfait fiscal), wealth tax may be replaced by a notional base; confirm eligibility in advance.

6. Family & Succession Planning

Vaud levies separate gift and inheritance taxes, but transfers to direct descendants are exempt. Coordinating lifetime transfers and wealth distribution can reduce overall exposure.

• Use family foundations or co-ownership to spread assets across multiple taxpayers.
• Confirm any tax impact of gifts to siblings or non-lineal relatives (subject to cantonal gift tax).
• Ensure liquidity planning for heirs where real estate forms a large part of wealth.

7. Advisory Takeaways

• Maintain updated records and valuations each year.
• Coordinate with income tax planning — debt, pensions, and asset mix affect both bases.
• Model commune relocation and restructuring scenarios in advance.
• For high-net-worth clients, consider combining Vaud residence with federal or treaty-based structuring.