Wealth Tax: Definition
Wealth tax is levied on a person's net worth. In Fribourg, what is considered wealth is moveable goods (money, jewellery, etc.) and immovable ones (like houses, flats. etc.).
Taxable assets: movable and immovable property
Exempt goods: household furniture and everyday personal items.
Houses
Furniture
Flats
Silverware
Works of art
Paintings
Cash
Clothing
Precious metals
Electronic objects (TV, tablet, smartphone, etc.).
Incurred debts are subtracted from the total amount of wealth. That is, once the total amount of wealth is calculated, the total amount of debts will be deducted from a taxpayer's total wealth.
Once debts have been deducted from total wealth, the net wealth is obtained, on which the tax calculation is based.
Who is Affected by this Tax?
In the canton of Fribourg, not everyone is subject to wealth tax. In fact, a person is only liable for this tax starting from a certain amount. The minimum amounts for being subject to this tax are:
- 20'000 CHF for a single person
- 35'000 CHF for a couple or a taxpayer with family responsibilities (children, adults in need of caretaking)
A person is not subject to wealth tax once they leave Switzerland. Similarly, someone who arrives in Switzerland, in the canton of Fribourg, will be subject to this tax, if she meets the criteria.
The Tax Rate for Wealth Tax in Fribourg
In Fribourg, the tax rate for wealth tax is gradual, i.e. it increases in line with the amount of net wealth. The tax rate is between 0,9‰ and 3,3‰ of a person's net worth.
For example, if a single taxpayer has a net wealth of CHF 100,000, he exceeds the minimum of CHF 20,000 and will be taxed on wealth. If the tax rate is 0.9‰, the wealth tax will be 90 CHF a year.
How to Calculate Wealth Tax?
To calculate wealth tax, one must first determine taxable wealth, which corresponds to the net worth. To do this, you need to determine the value of all your assets, both movable and immovable, and subtract any debts.
This will determine whether a person is liable to wealth tax. If wealth exceeds 20’000 CHF for a single person and 35’000 CHF for a married couple, it will be subject to tax. The next step is to apply the tax rate, which is between 0,9‰ and 3,3‰.
Calculation Example
Let's imagine a person with a net worth of 500 000 CHF :
Hypothetical tax rate: 2‰
Tax calculation: 500 000 CHF x 2‰ = 1 000 CHF
So, on a net worth of CHF 500,000, wealth tax in Fribourg would be around 1 000 CHF. Note that the actual rate may vary depending on the exact progressive scale and that specific deductions or rules may apply depending on the taxpayer's personal situation.
How Can you Reduce your Tax Burden?
It is possible to reduce the amount of wealth tax you pay in the canton of Fribourg, if you:
Declare All Debts
Make sure to declare all debts and loans so that they are subtracted from your total wealth.
Profitez des déductions
Take advantage of the social deductions granted by the canton of Fribourg, which offers a deduction of 105’000 CHF if your net worth is under 125’000 CHF, if you are :
- A married couple
- A single person who is a parent or caretaker
Invest
Investing in property is a good way of reducing your tax burden. Property is generally valued at its purchase value, which can reduce your overall net worth and subsequently the amount of tax you'll pay.
Fribourg par rapport aux autres cantons
Fribourg's tax rate is not particularly advantageous compared to other cantons. In Geneva, the rate is between 1.75‰ and 4.5‰ while in Zug it is between 0.425‰ and 1.9‰, making it one of the most attractive cantons for wealth tax.
Frequently Asked Questions
What is wealth tax in Fribourg?
Wealth tax in Fribourg is a direct tax levied on a taxpayer's net wealth. It concerns both movable assets (such as furniture, jewellery or collections) and immovable assets (house, land, flat). Any debts are deducted to arrive at the net wealth.
Who must pay wealth tax in Fribourg?
Only those whose net worth exceeds a minimum threshold are subject to this tax:
20’000 CHF for a single person
35’000 CHF for a couple or single person who is a parent or catetaker
New residents of Fribourg become taxable if their assets reach these amounts.
How is wealth tax calculated in Fribourg?
To calculate this tax, follow these steps:
- Determine the total value of your movable and immovable assets.
- Subtract your debts to obtain your net wealth.
- If net wealth exceeds the tax thresholds, apply the progressive rate between 0.9‰ and 3.3‰.
Example :
For net assets of CHF 500,000 with a rate of 2‰, the tax would be:
500,000 x 2‰ = CHF 1,000.
What is the wealth tax rate in Fribourg?
The tax rate in Fribourg is progressive: it varies between 0.9‰ and 3.3‰ depending on the amount of net wealth. For example, for net wealth of CHF 100,000, with a rate of 0.9‰, the tax would be CHF 90/year.
