Zurich Wealth Tax Guide:

cases cases

Zurich Wealth Tax cases

Zurich Wealth Tax: Cases & Worked Examples

Illustrative scenarios showing how cantonal progression, municipal multipliers, allowances, and deductions interact in practice.

These examples are for educational planning and mirror the mechanics described in Rates & Municipal Differences, Allowances & Deductions, and Valuation Rules. Use the Wealth Tax Calculator to adapt the numbers to your circumstances and municipality.

All figures rounded; municipal multipliers are indicative (e.g., 1.19 = 119%). Exact outcomes depend on the official Zurich tariff and your commune’s current-year multiplier.

Method Snapshot

  1. Compute net wealth = assets − liabilities (31 Dec).
  2. Subtract Zurich allowances (CHF 77k single / CHF 154k married + CHF 15k per child).
  3. Apply cantonal progressive base to taxable net wealth → CHF base amount.
  4. Multiply by municipal factor (and church component if applicable).

Case A — Single Professional (City of Zurich)

  • Municipality factor: 1.19 (City of Zurich)
  • Assets: CHF 1,250,000 (securities & cash)
  • Liabilities: CHF 0
  • Allowances: CHF 77,000
Net wealthCHF 1,250,000
Less allowances− CHF 77,000
Taxable net wealthCHF 1,173,000
Cantonal base (illustrative)≈ CHF 1,700
Municipal & church factors× (1 + 1.19 + 0.00) = 2.19
Estimated wealth tax≈ CHF 3,723
Effective rate on net wealth≈ 0.30%

Use the calculator to vary the municipal factor or add church component if applicable.

Case B — Married Couple with One Child (Küsnacht)

  • Municipality factor: 0.85
  • Assets: CHF 2,400,000 (home assessed value CHF 1,100,000; securities CHF 1,000,000; cash CHF 300,000)
  • Liabilities: CHF 700,000 mortgage
  • Allowances: CHF 154,000 + CHF 15,000 (child) = CHF 169,000
Net wealthCHF 1,700,000
Less allowances− CHF 169,000
Taxable net wealthCHF 1,531,000
Cantonal base (joint, illustrative)≈ CHF 2,500
Municipal & church factors× (1 + 0.85 + 0.00) = 1.85
Estimated wealth tax≈ CHF 4,625
Effective rate on net wealth≈ 0.27%
Planning angle: modest leverage (mortgage) reduces the wealth base; compare with alternative municipalities using the comparison box in the Calculator.

Case C — Entrepreneur (Unlisted Company, Suburban Commune)

  • Municipality factor: 1.05
  • Assets: CHF 3,500,000 (30% stake in operating AG valued via practitioner method at CHF 2.4m; securities CHF 1.0m; cash CHF 100k)
  • Liabilities: CHF 200,000 bank loan
  • Filing status: Married (no children)
  • Allowances: CHF 154,000
Net wealthCHF 3,400,000
Less allowances− CHF 154,000
Taxable net wealthCHF 3,246,000
Cantonal base (illustrative)≈ CHF 5,900
Municipal & church factors× (1 + 1.05 + 0.00) = 2.05
Estimated wealth tax≈ CHF 12,095
Effective rate on net wealth≈ 0.36%

Valuation of the private company follows Zurich practice (earnings/NAV weighting). Document the worksheet and assumptions.

Case D — Nonresident Owning Zurich Apartment

  • Tax nexus: Nonresident with Swiss real estate in Zurich
  • Municipality factor: 1.10
  • Assets in Zurich: Apartment assessed value CHF 900,000
  • Liabilities: Mortgage CHF 550,000 (allocated to Swiss property)
  • Allowances: nonresident treatment varies; use Zurich guidance (no personal exemption in many cases)
Net Swiss wealthCHF 350,000
Taxable net wealth (illustrative)CHF 350,000
Cantonal base (illustrative)≈ CHF 350
Municipal factor× (1 + 1.10) = 2.10
Estimated wealth tax≈ CHF 735
Note: Nonresident allocation and personal allowances depend on Zurich’s practice and treaty context. See the Nonresident Guide.

Case E — Relocation Within Zurich (Rate Delta)

Comparing City of Zurich (1.19) vs. Lower-multiplier suburb (0.85) on the same profile:

  • Profile: Married couple, two children (allowances CHF 184,000)
  • Net wealth before allowances: CHF 2,300,000
  • Taxable net wealth: CHF 2,116,000
  • Cantonal base (illustrative): ≈ CHF 3,700
City of Zurich (1.19) Suburb (0.85)
Multiplier factor (1 + 1.19) = 2.19 (1 + 0.85) = 1.85
Estimated wealth tax ≈ CHF 8,103 ≈ CHF 6,845
Annual delta ≈ CHF 1,258 (favouring the suburb)
Model your own delta in the Calculator by toggling two municipalities.

Case F — Cash-Heavy Portfolio vs. Mortgage Leverage

Two approaches for a single homeowner with the same property and gross wealth:

Strategy 1 — Low debt

  • Assets: Apartment CHF 1,000,000; Cash/Securities CHF 800,000
  • Liabilities: Mortgage CHF 300,000
  • Net wealth: CHF 1,500,000

Strategy 2 — Higher mortgage

  • Assets: Same
  • Liabilities: Mortgage CHF 600,000
  • Net wealth: CHF 1,200,000

Higher leverage can reduce wealth tax, but increases interest costs and risk. Evaluate holistically (income tax, liquidity, rate environment).

What To Do Next