Zurich Wealth Tax Valuation Rules
Zurich Wealth Tax: Valuation Rules
How assets are measured for Zurich’s wealth tax as at 31 December — from listed securities and real estate to private companies and digital assets.
Zurich assesses wealth tax on the net fair value of assets at 31 December. While cash is straightforward, other asset classes follow specific cantonal and Swiss-wide valuation practices. Applying the correct method — and documenting it — is essential to avoid adjustments.
This page summarises the prevailing practice under the Zurich Tax Code (StG-ZH) and guidance from the Zurich Cantonal Tax Office. Where federal or inter-cantonal coordination exists (e.g., official price lists, circulars), we note it discreetly.
Valuation by Asset Class (Summary)
| Asset Class | Valuation Reference (31 Dec) | Notes | Documentation |
|---|---|---|---|
| Cash & sight deposits | Nominal CHF balance | Foreign currency at official year-end FX rate | Bank statements |
| Listed shares, ETFs, bonds | Official year-end price list | Use the Federal Tax Administration (FTA) official securities list where available | Depot statement; FTA price reference |
| Funds (unlisted/limited pricing) | Official net asset value or FTA table | If no official price, use last available NAV adjusted to 31 Dec with evidence | Fund report/NAV notice |
| Real estate (Zurich) | Amtlicher Wert (assessed value) | Often below market; separate from imputed rental value (income tax topic) | Assessment extract; municipal registry |
| Real estate (outside Zurich) | Local cantonal assessment practice | Allocate inter-cantonal wealth appropriately | Local assessment notice |
| Private companies (unlisted) | Praktikermethode (earnings & net asset value weighting) | Standardised Swiss practitioner method; apply sector-typical weights | Financials; valuation worksheet |
| Partnerships / sole proprietorships | Business equity value | Similar principles to private companies | Balance sheet; profit statements |
| Precious metals | Official year-end indicative prices | Bullion at quoted 31 Dec price; numismatics at fair value | Dealer statements; price sheets |
| Art & collectibles | Fair market value | Household effects are generally exempt; significant works taxable | Appraisals; invoices; insurance schedules |
| Life insurance (savings) | Surrender value | Risk-only policies not part of wealth | Insurer certificate |
| Cryptocurrencies / tokens | Official 31 Dec prices (FTA list) where available | If not listed officially, use robust exchange reference and document | Wallet/exchange statements; FTA price table |
Always cross-check Zurich’s current-year guidance and official price lists for the filing year.
Listed Securities & Funds
For exchange-traded instruments (shares, ETFs, bonds), Zurich follows the official year-end price lists used nationwide. Where the Federal Tax Administration publishes a price, use that value. For funds without a daily market, use the official NAV closest to 31 December and disclose the cut-off date.
Real Estate
Zurich property
Zurich uses the amtlicher Wert (official assessed value) for wealth tax. This value is determined under cantonal methodology and is typically below market price. Note that the Eigenmietwert (imputed rental value) affects income tax, not wealth tax.
Out-of-canton property
Apply the respective canton’s assessment approach and allocate inter-cantonal wealth accordingly. Mortgages are apportioned proportionally to property values across cantons for wealth tax purposes.
Private Companies & Business Interests
Unlisted shareholdings are generally valued using the Swiss Praktikermethode, i.e., a weighted mix of capitalised earnings and net asset value. Sector-typical weighting is applied (often earnings-heavy for operating companies and NAV-heavy for holding/asset companies). Start-ups with negative earnings may be valued on a modified capital-based approach.
Adjustments for non-operating assets, unusual expenses, or shareholder loans are standard. Minority and illiquidity discounts can be considered where justified by facts and Zurich practice.
Alternatives, Precious Metals, Art
Physical gold and silver are valued at the 31 December indicative price. For art and collectibles, declare fair market value where the pieces are significant; ordinary household goods are not part of the taxable base. Private equity and hedge funds follow their official NAV; if not final by year-end, use the best available estimate and footnote.
Cryptoassets
Zurich relies on the official year-end price list published at federal level where available. For tokens not covered, use a reputable exchange closing price on 31 December and retain a screenshot or price feed export.
Self-custodied wallets should be backed by address proofs (e.g., signed message or explorer link) and reconciled to your records.
Foreign Currency Conversion
Assets and liabilities in foreign currency are translated using the official 31 December FX rates recognised for Swiss tax purposes. For multi-currency portfolios, provide a conversion table showing balances, rates, and CHF equivalents.
Liabilities (for Netting)
Deduct only legally enforceable liabilities outstanding at year-end (mortgages, loans, taxes due). Contingent liabilities are excluded until they become due. See Allowances & Deductions for rules and examples.
Worked Valuation Examples (Illustrative)
Example A — Mixed securities portfolio
- Listed equities & ETFs: CHF 1,450,000 (FTA 31 Dec prices)
- Corporate bond: CHF 120,000 (official price)
- USD cash: USD 250,000 → CHF using official 31 Dec rate
Declared wealth: CHF values per official price list/FX; attach depot statement and FX table.
Example B — Private AG with operating business
- Normalised earnings (3-yr avg): CHF 800,000
- Capitalisation rate: 9% → Earnings value ≈ CHF 8.9m
- NAV (adjusted): CHF 6.2m
- Weighting: 2/3 earnings, 1/3 NAV → Equity value ≈ CHF 8.0m
Shareholder’s interest (30%): ≈ CHF 2.4m (consider minority discount if justified).
Example C — Zurich apartment and mortgage
- Official assessed value (amtlicher Wert): CHF 850,000
- Mortgage balance (31 Dec): CHF 520,000
Net addition to wealth base: CHF 330,000 (plus other assets, less other debts).
Compliance & Evidence
- Cut-off: Values must reflect the position on 31 December.
- Price sources: Use the official FTA securities and crypto lists where available; keep references.
- Real estate: Retain the latest assessment notice; for changes (renovations, subdivision), include municipal correspondence.
- Private companies: Provide a transparent worksheet; align with Zurich practice on weights/normalisations.
- FX: Attach or reproduce the official FX table used for conversion.