Switzerland is one of the few countries that still levies a wealth tax. Understanding how this tax works is essential for expats who have accumulated assets, whether in Switzerland or abroad.
What is Swiss Wealth Tax?
Swiss wealth tax (Vermögenssteuer) is an annual tax levied on your worldwide net assets. It's calculated at the cantonal and municipal level, with rates varying significantly between cantons.
What Assets are Included?
All your worldwide assets are subject to Swiss wealth tax, including:
- Real estate (Swiss and foreign)
- Bank accounts and investments
- Cryptocurrency holdings
- Business interests
- Personal property (above certain thresholds)
Tax Rates by Canton
Wealth tax rates vary significantly between cantons. Some cantons have no wealth tax, while others can charge up to 1% annually.