Waltz Bécsben született, Johannes Waltz és Elisabeth Urbancic gyermekeként. Nagyszülei színészek voltak, Waltz maga is színjátszást tanult a bécsi Max Reinhardt Szemináriumban, valamint a New York-i Lee Strasberg Theatre and Film Institute-ban. Színházi színészként kezdte pályafutását, játszott Zürichben és a bécsi Burgtheaterben.
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