Swiss Wealth Tax Explained

The Swiss wealth tax is levied solely on a cantonal level. In most cantons, the tax burden on assets exceeding CHF 200’000 is between 0.2% and 1% percent.

Valuation of assets components

Generally speaking, the following assets are considered as taxable:

Deductions

The proven debts can be deducted from the gross wealth. This results in the net wealth. Various cantons apply social deductions which take into account factors of the taxpayer such as marital status or number of children. It should be noted that social deductions and tax allowances differ among cantons.

Conclusion

Wealth taxes are levied annually for the corresponding tax year. Taxable assets are calculated on the basis of the situation at the end of the relevant tax year and most are valued at market value. Worldwide assets must be declared, not solely those in Switzerland. Debts can be deducted, which reduces taxable assets. Since wealth tax is only levied on a cantonal level, tax rates, progressions and social deductions vary between cantons.