REAL ESTATE TAXES
Various taxes apply to real estate in Switzerland
- Property gains tax
- Imputed rental value
- Transfer tax
Property gains tax
Property gains tax is calculated on the difference between the sale price and the original purchase price. Only the difference is taxed. It is legitimate to claim value-enhancing investments (e.g. loft conversion) or sales costs (estate agent’s commission) in addition to the original purchase price. This reduces the difference between the sale and purchase price and the tax liability is also reduced. When calculating the amount of tax, the length of time the property has been in the seller’s possession is also taken into account. The longer the property has been in the seller’s possession, the lower the taxes will be.
Imputed rental value
This tax is about equality between tenants and homeowners. Think of the imputed rental value as fictitious income: The amount of imputed rental value is based on the amount you would receive as income if you were renting. You have to pay tax on this constructed income. With this tax, you can deduct mortgage interest and maintenance costs from your taxable income.
Transfer tax
If the owner of the property changes (through purchase, inheritance or gift), transfer tax is due. In contrast to property gains tax, it is not the profit that is taxed, but the costs of the change at the land registry. Please note the cantonal regulations that apply to you: Depending on the canton, there is no transfer tax (but higher fees for the buyer’s registration) or the tax is shared between the buyer and seller.
Save taxes
Your HYPOTEQ advisor will consider and highlight all tax aspects for you so that you are not faced with unpleasant surprises before and after the house purchase.
