Wealth Tax & Other Taxes – Switzerland

All 26 cantons levy annual wealth tax on worldwide net assets. Lowest: Nidwalden 0.10%, Schwyz 0.15%, Obwalden 0.20%. Highest: Bern 0.88%, Geneva ~0.80%, Vaud ~0.75%. Most cantons: 0.3-0.5% range. Progressive rates in some cantons (higher wealth = higher %), flat in others.

Taxable wealth includes: bank accounts, securities, crypto, real estate (Swiss and foreign), business interests, cash value of life insurance, art/jewelry (if significant), cars/boats. Liabilities deducted: mortgages, loans, debts. Net wealth = total assets minus liabilities.

Each canton sets exempt amount before wealth tax applies. Single persons: typically CHF 50,000-100,000. Married couples: CHF 100,000-200,000. Families with children: higher exemptions. Example: Zurich CHF 79,000 single, CHF 158,000 married. Small/moderate wealth often pays zero wealth tax.

No separate annual property tax in most cantons - real estate included in wealth tax calculation. Valued at market value (estimated by canton) or purchase price if recent. Some cantons have small separate real estate taxes (~0.1-0.3%). Much lower than US property taxes (1-3%).

One-time tax on property transfers. Varies by canton: Schwyz 1.0%, Zug 2.2%, Zurich 3.0%, Geneva 3.0%, Vaud 3.3%. Calculated on transaction value. Paid by buyer (or sometimes split). Includes land registry fees. Total transaction costs including notary: typically 3-5%.

Real estate capital gains = cantonal tax (not income tax). Rates vary by canton and holding period. Typically progressive: short holding (0-5 years) = 30-40% tax, long holding (20+ years) = 0-10% tax. Primary residence often exempt after minimum holding. Complex canton-specific rules.

Most cantons: no inheritance/gift tax for spouses or direct descendants (children, grandchildren). Growing trend - Schwyz, Zug, Lucerne, others abolished all inheritance taxes. Federal government: no inheritance/gift tax. Attractive for intergenerational wealth transfer.

Siblings, nieces/nephews, other relatives: rates vary by canton and degree of relationship. Typically 5-30% depending on canton and amount inherited. Non-relatives: can face 30-50% rates in some cantons. Each canton sets own rules and progressive scales.

Double taxation treaties affect cross-border estates. Swiss residents inheriting foreign assets: may face both Swiss and foreign inheritance taxes. Careful planning essential. Trusts and foundations used for tax-efficient estate planning. Specialist advisors recommended.

Swiss companies withhold 35% tax on dividend payments. Swiss residents reclaim full 35% through tax return (effectively 0% withholding for residents). Foreign investors: reclaim portion based on double taxation treaty (typically 15% US treaty rate). Administrative burden for reclaims.

Value Added Tax: 8.1% standard rate (increased from 7.7% in 2024 to fund AHV). Reduced rate 2.6% (food, books, medication, newspapers). Special rate 3.8% (accommodation). Businesses with turnover >CHF 100,000 must register for VAT.

Members of recognized churches (Catholic, Protestant) pay church tax: typically 10-20% of income/wealth tax amount. Varies by canton. Completely optional - can opt out by officially leaving church. Collected by canton alongside other taxes if member.