What assets are subject to Swiss wealth tax and what deductions apply?

Swiss wealth tax applies to the net worldwide assets of every resident — bank balances, securities portfolios, real estate, cars, boats, business stakes, and other valuables. Debts including mortgages, personal loans, and outstanding tax liabilities are subtracted to arrive at net taxable wealth. Pillar 2 vested benefits and Pillar 3a balances are exempt from wealth tax while locked in the pension system.

Each canton sets its own rate and tax-free allowances. Canton Zurich provides a deduction of CHF 92,000 per adult and CHF 25,000 per dependent child before applying its progressive rate, which starts below 0.1% and peaks near 0.7% for very large fortunes. Low-tax cantons like Zug and Schwyz apply rates roughly half those of Zurich or Geneva, making residency choice significant for wealthy individuals.

Securities are valued at the official year-end market price published by the FTA. Real estate uses the cantonal assessed value (Steuerwert), which often understates market value. Unlisted company shares require a formula-based valuation. Reporting all assets correctly is mandatory; undisclosed foreign accounts discovered after an amnesty period attract penalties.

This is general information only, not professional tax advice. Consult a qualified tax professional for your specific situation.