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What is Vermögenssteuer (Swiss Wealth Tax)?

Vermögenssteuer (impôt sur la fortune) is an annual cantonal and communal tax on a Swiss resident's worldwide net wealth above a tax-free threshold, levied at progressive rates that vary widely by canton.

Switzerland is one of the few European countries that still levies a wealth tax, but only at canton and commune level — there is no federal wealth tax. Net wealth is assessed on 31 December: financial assets, real estate (at cadastral value), private cars, valuables, less debts and a personal allowance.

Pillar 2 and Pillar 3a capital are exempt while locked. Cantonal rates differ dramatically: a CHF 2 million net wealth can mean roughly CHF 1,500 of annual wealth tax in Nidwalden vs. about CHF 18,000 in Geneva or Vaud. Tax-free thresholds for a single person range from CHF 50,000 to CHF 200,000 depending on canton.

Effective rates climb progressively, usually between 0.1% and 1.0%. Real estate is always taxed in the canton where it stands, even for non-residents. The Vermögenssteuer is one of the main drivers behind cantonal relocation decisions for high-net-worth individuals in Switzerland.

Example

A single resident of Zurich with CHF 1 million in ETFs and a CHF 1,200,000 home (cadastral value CHF 700,000) minus a CHF 600,000 mortgage has taxable net wealth of about CHF 1,100,000 and pays roughly CHF 3,000 wealth tax per year.

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Frequently asked questions

Is Pillar 3a taxed as wealth?+

No — while locked it is exempt. Once withdrawn, the capital becomes part of regular taxable wealth.

Are foreign assets included?+

Yes. Worldwide wealth is reported, but tax treaties allocate taxing rights for foreign real estate to the country where it is located.

Which cantons have the lowest wealth tax?+

Nidwalden, Obwalden, Schwyz, Zug and Appenzell-Innerrhoden are consistently the cheapest; Geneva, Vaud and Basel-Stadt the most expensive.