Wealth Tax for Expats: What Must Be Declared in Switzerland?

Many expats in Switzerland know that their income is taxed – often via withholding tax. Less well known is the fact that Switzerland also levies a wealth tax. This tax applies to the worldwide net assets of all persons who are tax-resident in Switzerland. For expats, this means that not only Swiss bank accounts, but also foreign properties, securities and cryptocurrencies must be correctly declared.

This article explains how the wealth tax works, what exactly must be declared, and what special rules apply to expats (as of 2025).

Important note: Wealth tax is a cantonal tax. Tax rates, exemptions and thresholds vary considerably by canton. For individual calculations, the official ESTV tax calculator or professional tax advice is recommended.

Basics of Swiss Wealth Tax

What Is the Wealth Tax?

Wealth tax is a direct tax on net assets (gross assets minus debts) of a taxable natural person. It is levied exclusively by cantons and municipalities – the federal government does not levy a wealth tax. Rates vary significantly depending on the canton and municipality.

Who Is Subject to Wealth Tax?

All persons who are tax-resident in Switzerland are in principle subject to wealth tax. Tax residence arises when:

• the domicile is permanently in Switzerland (centre of life), or
• a stay of more than 30 days with gainful employment or more than 90 days without gainful employment occurs.

In practice, virtually all expats with a B or C permit who live in Switzerland are subject to wealth tax – once their net assets exceed the cantonal threshold.

Important: When Must Withholding-Tax Expats File a Tax Return?

Expats holding an L or B permit generally pay withholding tax. Their assets are not automatically assessed. However, as soon as a subsequent ordinary assessment (NOV) becomes mandatory, all worldwide assets must be declared.

A mandatory NOV is triggered when (using the canton of Zurich as an example):

TriggerThresholdGross salary from employmentCHF 120'000/yearNon-withholding-tax income (e.g. dividends, rental income)CHF 3'000/yearWorldwide taxable assets (single)CHF 80'000Worldwide taxable assets (married)CHF 160'000

The CHF 80'000 asset threshold affects many expats: Anyone with a Swiss savings account, a securities portfolio in their home country, or a property abroad can quickly reach this threshold. Once the NOV applies, the entire worldwide wealth must be declared on the tax return.

Thresholds vary by canton. It is worth checking the relevant cantonal guide.

Which Assets Must Expats Declare?

Bank Deposits and Securities

• Swiss and foreign bank accounts (balance as of 31 December)
• Securities: shares, funds, bonds, ETFs – Swiss and foreign
• Cryptocurrencies: must be declared; the ESTV publishes annual official tax values for the most common cryptocurrencies (Bitcoin, Ether, etc.) in its price list. Cryptocurrencies not listed are valued at market value as of 31 December.

Real Estate

• Swiss properties: Full declaration at the cantonal tax value (generally below market value)
• Foreign properties: Must also be declared but are only rate-determining: they increase the applicable tax rate but are not directly taxed in Switzerland (tax apportionment applies)

Insurance and Pension Assets

• Surrender values of life insurance policies (capital insurance) must be declared
• Second-pillar pension fund (Pensionskasse) and Pillar 3a assets are exempt from wealth tax until payout (statutory exemption under BVG)
• Annuities (Leibrenten): New rules apply from 1 January 2025; the taxable yield component is determined annually by the ESTV (7% for 2025)

Movable Assets

• Vehicles (cars, boats, motorcycles) must be declared at market value
• Artwork, jewellery, collections of significant value
• Household goods and personal everyday items (furniture, clothing) are generally exempt from wealth tax

Valuation of Assets

AssetBasis of valuationSwiss bank depositsBalance as of 31.12.Foreign bank depositsBalance as of 31.12., converted at ESTV year-end rateSwiss securities and fundsOfficial ESTV tax rate as of 31.12.Foreign securitiesESTV price list; unlisted securities: market valueCryptocurrenciesESTV price list; otherwise market value as of 31.12.Swiss real estateCantonal tax value (often 60–80% of market value)Foreign real estateMarket value or locally recognised comparable valueVehiclesMarket value (e.g. Eurotax lists)

The ESTV publishes official tax rates and cryptocurrency values at the beginning of each year for the previous tax year.

Deductions from Wealth Tax

Debts

All evidenced liabilities can be deducted from gross assets:

• Mortgages on Swiss and foreign properties
• Personal loans, consumer loans, lease liabilities (note: for leased vehicles, no asset entry since no ownership applies)
• Credit card balances and overdrafts as of 31 December

Flat-Rate Deductions and Administration Costs

Some cantons allow flat-rate deductions for securities administration costs (e.g. Canton Zurich: 3‰ of securities tax value, max. CHF 6'000). These are deductible as income-earning costs in the income tax return.

Exemptions and Entry Thresholds by Canton

CantonThreshold / Exemption (single)Threshold / Exemption (married)ZurichCHF 80'000 (entry threshold)CHF 159'000BernCHF 100'000 (true exemption)CHF 200'000ZugCHF 100'000CHF 200'000GenevaCHF 82'000CHF 164'000Basel-CityCHF 77'900CHF 155'800

Important distinction: In Zurich, the CHF 80'000 threshold is an entry threshold – only the portion above this amount is taxed. In the canton of Bern, once the exemption is exceeded, the entire net wealth is taxed.

Wealth Tax Rates

Rates are set by each canton and are progressive. Expressed in per mille (‰) of the basic cantonal tax:

CantonRate (basic cantonal tax)Approx. total effective burdenZurich0 – 3 ‰0.1 – 0.65% of taxable wealthZugVery low (cheapest canton)Approx. 0.02 – 0.1%GenevaHigherApprox. 0.2 – 1%BernMid-rangeApprox. 0.1 – 0.5%

The effective burden is: basic cantonal tax × cantonal tax multiplier × municipal tax multiplier. The tax multiplier varies significantly by municipality – choice of residence is therefore an important tax consideration.

Special Considerations for Expats

Double Taxation and Tax Apportionment

Foreign real estate is taxed in the country of location. Switzerland therefore applies tax apportionment (Steuerausscheidung): foreign assets influence the tax rate (rate-determining) but are not taxed twice. In practice, this means the tax rate on Switzerland-based assets is higher than it would be without the foreign property – but the foreign property itself is not directly taxed in Switzerland.

Withholding Tax on Swiss Capital Income

The federal government levies a withholding tax (Verrechnungssteuer) of 35% on interest and dividends from Swiss securities. This can be reclaimed in full via the tax return – but only if the relevant income and securities have been fully declared. For expats subject to a mandatory NOV, this is a significant incentive for complete declaration.

Departure from Switzerland

Upon departure, assets must be declared up to the date of deregistration. Wealth tax is levied pro rata temporis (proportional to the period of tax liability in the tax year). After departure, wealth tax falls to the new country of residence.

Practical Examples

Example 1: Expat with Bank Accounts in Multiple Countries

An expat with a B permit lives in Basel. He has a Swiss account (CHF 30'000), a German account (EUR 40'000 ≈ CHF 38'000) and a securities portfolio in Germany (CHF 25'000). Total assets approximately CHF 93'000. As net assets exceed CHF 80'000 (threshold in Zurich / Basel-City), a mandatory NOV is required. All three accounts must be declared, converted using the ESTV year-end exchange rate.

Example 2: Expat Family with Property in Italy

An expat couple (married, Canton Zurich) owns a holiday apartment in Milan valued at EUR 350'000 (approx. CHF 330'000). Their Swiss bank assets amount to CHF 80'000. Total gross assets: approx. CHF 410'000. The Italian property is declared on the tax return but only rate-determining. Taxable assets in Switzerland are CHF 80'000, but the tax rate is calculated as if the total wealth (CHF 410'000) were in Switzerland – resulting in a higher rate on the Swiss portion.

Example 3: Expat with Cryptocurrencies

An expat with a B permit holds 0.5 Bitcoin and Swiss bank assets of CHF 40'000. According to the ESTV price list, Bitcoin is valued at CHF 94'500 as of 31.12.2024 (0.5 BTC = CHF 47'250). Total assets: CHF 87'250 → above the NOV threshold. The cryptocurrencies must be declared in the securities inventory.

Common Mistakes and Tips

Common Mistakes

• Foreign bank accounts not declared: Full declaration is mandatory – even for accounts with very small balances.
• Unaware of NOV obligation above CHF 80'000: Many B-permit expats do not know that a complete tax return may already be required at relatively modest asset levels.
• Incorrect valuation of foreign properties: Using the historical purchase price instead of market value is not permitted.
• Forgetting cryptocurrencies: These must be declared; failure to declare constitutes tax evasion.
• Not reclaiming the withholding tax: Anyone who fails to declare Swiss securities in full loses the right to reclaim the 35% withholding tax.
• Incorrectly declaring pension fund and Pillar 3a assets: These are exempt from wealth tax and do not belong in the asset schedule.

Tips for Expats

• Prepare bank statements and securities inventories as of 31 December early and keep them on file.
• Use the ESTV price list for the correct valuation of foreign securities and cryptocurrencies (published annually at estv.admin.ch).
• Document foreign property values with a local appraisal or comparable evidence.
• Check NOV obligation early: As soon as worldwide assets exceed CHF 80'000 (single) or CHF 160'000 (married), a mandatory NOV applies in Zurich – check for cantonal differences.
• Reclaim withholding tax: Complete declaration of all Swiss income ensures the 35% withholding tax refund is secured.
• Engage tax advice for international assets – especially for foreign properties, stakes in companies or complex portfolio structures.

Conclusion

Wealth tax is an important but often underestimated part of the tax obligation in Switzerland. Expats who are tax-resident here must declare their entire worldwide net assets – from bank deposits to foreign properties. For withholding-tax expats, the rules are frequently misunderstood: a mandatory tax return can already be triggered at net assets of just CHF 80'000 (single).

Those who know the cantonal thresholds, apply the correct valuations, deduct all debts and make use of the withholding tax refund can fulfil their wealth tax obligations correctly and avoid unnecessary legal risk.