Wealth Tax in Switzerland: Who Pays and How Much?

In addition to income tax, Switzerland imposes another significant tax: the wealth tax. Many expats and Swiss residents underestimate it because comparable taxes are rare in other countries. Wealth tax applies to a person’s net assets and is levied exclusively by cantons and municipalities, resulting in substantial differences depending on where you live.

This article explains who is subject to wealth tax, how assets are assessed, which exemptions apply, and what the actual tax burden looks like.

Basics of Wealth Tax

Who is subject to wealth tax?

All persons who are tax-resident in Switzerland must pay wealth tax. This includes:

• Swiss citizens with a Swiss residence
• Foreign nationals with tax residency or a stay in Switzerland
• Married couples and registered partners (jointly taxed)

Non-residents only have to declare Swiss assets (e.g., real estate).

Tax Object

The tax applies to net assets, calculated as:

Assets − Liabilities = Taxable Wealth

Which Assets Are Taxable?

• Bank accounts and securities:
  • Swiss and foreign bank balances
  • Stocks, funds, bonds, and other securities
  • Cryptocurrencies (using official Swiss Federal Tax Administration (FTA) values)
• Real estate:
  • Swiss properties are fully taxable
  • Foreign properties affect the tax rate (progression), but are not directly taxed in Switzerland
• Other assets:
  • Vehicles, jewelry, and art of significant value
  • Surrender values of life insurance policies

Asset Valuation

• Bank accounts & securities: valued at year-end balances; the FTA publishes official yearly rates.
• Real estate:
  • Swiss properties: cantonal tax value (often below market value)
  • Foreign properties: market value or locally accepted valuation
• Cryptocurrencies: valued at the official FTA price list

Deductions and Exemptions

• Liabilities: Mortgages, loans, and private debts can be deducted
• Exemptions: Each canton grants exemptions, reducing taxable wealth. Examples (2025, rounded):
  • Zurich: CHF 77,000 for individuals, CHF 154,000 for couples
  • Geneva: CHF 82,000 for individuals, CHF 164,000 for couples
  • Zug: CHF 100,000 for individuals, CHF 200,000 for couples

Tax Rates and Cantonal Differences

• Progressive rates: Most cantons levy wealth tax progressively—the higher the assets, the higher the rate.
• Examples of typical rates:
  • Zurich: ~0.05–0.3 %
  • Geneva: ~0.1–1 %
  • Zug: ~0.05–0.2 %

A wealth of CHF 1 million can thus be taxed very differently depending on the canton.

Practical Examples

Example 1: Individual in Zurich

An investor has CHF 500,000 (bank accounts and securities). After deducting the CHF 77,000 exemption, taxable wealth is CHF 423,000. Wealth tax amounts to approximately CHF 1,000–1,200.

Example 2: Married couple in Geneva with foreign property

A couple has CHF 1.5 million in assets, including a French apartment. The French property is considered for progression but not directly taxed. Taxable wealth is reduced by the CHF 164,000 exemption.

Common Mistakes and Tips

Common Mistakes

• Not declaring foreign accounts or properties
• Incorrect valuation of real estate
• Failing to deduct mortgages or other debts correctly

Tips

• Declare all assets and liabilities fully
• Use official valuation and tax rates
• Consider double taxation agreements for international assets
• Observe deadlines for filing tax returns

Conclusion

Wealth tax is a key component of the Swiss tax system, affecting all residents. The actual tax burden varies significantly by canton, making location a critical factor.

Properly valuing assets, using exemptions, and understanding cantonal differences can optimize tax liability and avoid legal risks.