The Swiss Wealth Tax

In Switzerland everyone pays a wealth tax from 0.17% to 0.3% for wealth of over half a million CHF. (private vehicles, bank accounts, property, all forms of wealth are taxes for everyone independent of “income”.)

Revenues from net wealth taxes made up 5.12 percent of revenues in Switzerland in 2020 …

About one-third of the Swiss population is wealthy enough to owe a “wealth tax”.

intercst

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In Switzerland everyone pays a wealth tax from 0.17% to 0.3% for wealth of over half a million CHF. (private vehicles, bank accounts, property, all forms of wealth are taxes for everyone independent of “income”.)
About one-third of the Swiss population is wealthy enough to owe a “wealth tax”. [Emphasis added.]

Intercst,

I hope that one of our readers can shed some light on why so few of the Swiss have managed to amass a mere 500,000 CHF (523,855 USD or 484,255 EUR). I don’t recall seeing mobs of homeless people in Zurich, Lucerne, or any of the mountain villages we traversed over the years, even though the acquisition of even a modest, tidy Swiss cottage requires great wealth.

The median price for houses on the market is CHF 1,150,000. The asking price for 80% of properties falls within the range between CHF 460,000 and CHF 3,330,000. The average [house] price per [square meter] in Switzerland is CHF 7,264 / [sq.m]…
The median price for apartments on the market is CHF 705,000. The asking price for 80% of properties falls within the range between CHF 340,000 and CHF 1,850,000. The average [apartment] price per [sq.m] in Switzerland is CHF 8,004 / [sq.m] (price per square meter).

https://realadvisor.ch/en/property-prices

Perhaps the tax assessors or government revenue officers are all blind or mentally challenged or perhaps the famously discrete Swiss Banks are all empty.

:wink:

Notehound writes,

I hope that one of our readers can shed some light on why so few of the Swiss have managed to amass a mere 500,000 CHF

</snip

The Swiss are wealthier than Americans. A net worth of $500,000 is the 78th percentile in the US, about 67th percentile in Switzerland. About 50% more Swiss have a net worth of $500K or more.

It may be that the Swiss have a greater understanding of economics. While 66% of Americans own a home, only 42% of the Swiss do (lowest in Europe). Perhaps they’re students of Robert Shiller’s work.

https://www.statista.com/statistics/246355/home-ownership-ra…

intercst

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Assets saved in occupational pension plans or tied private provision plans (pillar 3a) are also exempt from wealth tax, whereas life insurance policies with a surrender value count as taxable assets.

https://www.vischer.com/en/knowledge/blog/wealth-tax-and-how…

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I don’t recall seeing mobs of homeless people in Zurich, Lucerne, or any of the mountain villages we traversed over the years, even though the acquisition of even a modest, tidy Swiss cottage requires great wealth.

I don’t know about Switzerland, but the norm in Europe is a much better safety net funded by much higher taxes. Because of high taxes, executives prefer company paid perks like first class air travel and hotels rather than big bonuses (which mostly go to taxes).

Safety net means universal health insurance usually paid for by government. Lifetime employment or payments to retirement once you get a job. (Many begin as temps under contract until they get a job offer.)

The safety net means there is no need for homeless people. They get checks from the government and apparently can find a place they can afford.