How does Swiss wealth tax (Vermögenssteuer) work?

Switzerland has a wealth tax (Vermögenssteuer) at the cantonal and communal level — there is no federal wealth tax. It applies to net worldwide assets of Swiss residents: bank accounts, securities, real estate, business interests, vehicles, and other valuables, minus debts. Pillar 2 and Pillar 3a balances are generally excluded.

Rates are low by international standards. Most cantons charge between 0.1% and 0.7% of net assets per year, with higher amounts taxed at higher rates (progressive). Some cantons like Zug and Schwyz have especially low rates. Social deductions apply — for example, Canton Zurich allows a deduction of CHF 92,000 per adult and CHF 25,000 per child before applying the rate.

Assets are valued at tax value, not always market value. Listed securities use the year-end market price. Real estate is valued at the official assessed value (Steuerwert), which is often lower than market value. You declare all assets on your annual tax return.

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