Swiss Wealth Tax Guide
Swiss Wealth Tax Guide
Switzerland does not impose a federal wealth tax. Instead, wealth tax is levied by the cantons and municipalities. Thresholds, exemptions, and rates therefore vary by canton and even by commune.
1) Tax Authority and Legal Basis
The Federal Harmonization Law (StHG) leaves assessment and collection of wealth tax to the cantons. There is no federal wealth tax. Municipalities commonly apply a multiplier to the cantonal amount.
2) Who Is Subject to Wealth Tax?
Swiss residents are taxed on their worldwide net assets (assets minus debts). Typical assets include bank accounts and securities, real estate, life insurance surrender values, vehicles, boats/aircraft, and valuables (e.g., jewelry, art). Non-residents are taxed only on Swiss-situated assets (primarily real estate). Most cantons grant a personal allowance so only wealth above a threshold is taxable.
3) When and Where Is the Tax Assessed?
- Assessment date: Annually on December 31.
- Jurisdiction: Canton of residence; Swiss real estate is taxed where the property is located.
- Basis: Net worth = total assets – liabilities.
4) Rates and Calculation
Cantonal wealth tax is typically progressive, though some cantons apply low flat bands. Combined cantonal/municipal burdens usually fall around ~0.1% to ~1% of taxable net wealth, depending on canton and communal multipliers.
5) Exemptions and Thresholds
Each canton sets its own allowance(s), often higher for married couples and with additional deductions for dependents. Municipal multipliers and detailed progression tables can materially affect the final burden.
6) Cantonal Overview — Allowances and Rates
The figures below are rounded, indicative ranges for singles to support quick comparisons. Exact brackets, communal multipliers, marital/child allowances, and special rules vary by canton.
| Canton | Allowance (Single) | Wealth Tax Rates (approx.) |
|---|---|---|
| Aargau | CHF 100,000 | ~0.10% – 0.60% |
| Appenzell Innerrhoden | CHF 80,000 | ~0.05% – 0.30% |
| Appenzell Ausserrhoden | CHF 80,000 | ~0.05% – 0.35% |
| Basel-Landschaft | CHF 100,000 | ~0.10% – 0.55% |
| Basel-Stadt | CHF 100,000 | ~0.10% – 0.50% |
| Bern | CHF 97,000 | ~0.10% – 0.50% |
| Fribourg | CHF 100,000 | ~0.10% – 0.60% |
| Geneva | CHF 111,000 | ~0.175% – 0.45% |
| Glarus | CHF 80,000 | ~0.05% – 0.40% |
| Graubünden | CHF 100,000 | ~0.10% – 0.50% |
| Jura | CHF 100,000 | ~0.15% – 0.60% |
| Lucerne | CHF 100,000 | ~0.05% – 0.30% |
| Neuchâtel | CHF 100,000 | ~0.10% – 0.50% |
| Nidwalden | CHF 50,000 | ~0.02% – 0.0665% |
| Obwalden | CHF 80,000 | ~0.05% – 0.20% |
| Schaffhausen | CHF 100,000 | ~0.10% – 0.40% |
| Schwyz | CHF 80,000 | ~0.02% – 0.15% |
| Solothurn | CHF 100,000 | ~0.10% – 0.50% |
| St. Gallen | CHF 100,000 | ~0.10% – 0.40% |
| Thurgau | CHF 100,000 | ~0.10% – 0.40% |
| Ticino | CHF 100,000 | ~0.10% – 0.60% |
| Uri | CHF 80,000 | ~0.05% – 0.30% |
| Valais | CHF 100,000 | ~0.10% – 0.50% |
| Vaud | CHF 100,000 | ~0.10% – 0.60% |
| Zug | CHF 100,000 | ~0.0425% – 0.17% |
| Zurich | CHF 77,000 | ~0.05% – 0.30% |
Important: Ranges are indicative. Final liability depends on the canton’s progression tables, municipal multipliers, marital status, dependents, deductions, and asset valuation rules.
7) Comparison to Inheritance Tax
Wealth tax is an annual levy on net worth. Inheritance tax is a transfer tax at death (cantonal as well) and often exempts close family. The two taxes are separate and follow different rules and rates.
Summary
Swiss Wealth Tax – Frequently Asked Questions
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No. Switzerland does not levy a wealth tax at the federal level. Wealth tax is set and collected by the 26 cantons (with additional municipal multipliers), so thresholds and rates vary by location.
Residents are generally taxed on their worldwide net assets (assets minus debts). Non-residents are taxed only on Swiss-situated assets, primarily Swiss real estate and certain business assets located in Switzerland.
Included: bank accounts, securities (stocks/bonds/funds), investment and cash-value insurance, real estate, boats/vehicles, and valuables (e.g., art, jewelry). Household goods of everyday use are typically ignored.
Pensions: Occupational pension assets (Pillar 2) and tied pension savings (Pillar 3a) are generally not subject to annual wealth tax while still within the pension plan; they are taxed upon withdrawal under separate rules.
Wealth tax is assessed annually as of December 31. Listed securities are valued at year-end prices (official price lists are published). Real estate is valued using cantonal tax values or appraisal methods. Foreign assets are converted to CHF at year-end exchange rates.
Each canton sets a personal allowance (tax-free threshold) and rate schedule (progressive or low flat bands). Your commune then applies a multiplier to the cantonal amount, which can raise or lower the total liability depending on where you live.
Yes. Net wealth is calculated after deducting debts such as mortgages, margin loans, and other personal liabilities. For non-residents and for cross-border assets, debts are generally allocated proportionally to assets in and outside Switzerland under cantonal rules.
No. All cantons levy wealth tax. However, some (e.g., Zug, Schwyz, Nidwalden) apply very low rates and/or generous allowances, which can materially reduce the annual burden.
The U.S. currently has no federal wealth tax. Swiss wealth tax is generally not creditable as a foreign tax credit against U.S. income tax because it is not an income tax. Any potential U.S. deduction treatment is limited and subject to complex rules and caps; specialized advice is recommended.
U.S. persons with Swiss accounts or financial assets may have to file FBAR (FinCEN 114) and FATCA (Form 8938) if thresholds are met. These are information reports and are separate from Swiss wealth tax; non-compliance can trigger significant penalties.
Wealth tax is filed together with the annual cantonal income/wealth tax return. Deadlines vary by canton (often March–April, extensions common). Assessments are issued after filing; payments can typically be made in installments or via provisional invoices.
Typical approaches include choosing a canton/commune with favorable rates, optimizing debt allocation (e.g., mortgage leverage on Swiss property), understanding asset valuation rules, and making use of pension pillars (2/3a) which are not subject to annual wealth tax while inside the plan. Strategies should be modeled across cantons to reflect multipliers and brackets.
Need help modeling your Swiss wealth tax or coordinating with U.S. reporting? Contact us for tailored, cross-border advice.