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Taxes on house sales.
Which taxes are incurred when selling a house in Switzerland?
Property gains tax is the main tax to consider when selling a property in Switzerland. This tax is levied on the gain generated between the purchase and sale and is generally paid by the seller. The amount of tax payable varies depending on the canton and how long the property has been owned for. Some cantons also apply a transfer of ownership tax, which is usually paid by the buyer although, depending on the canton, the seller may also be liable for either the full amount or half of it. Early tax planning is recommended.
What is transfer of ownership tax?
Transfer of ownership tax is a levy regulated at cantonal level in Switzerland which is applied when ownership of a property is transferred. It is incurred, for example, when a property is sold, gifted or exchanged, but not in the case of transfers of ownership without payment such as gifts or as part of an inheritance. It is levied regardless of whether the transfer of ownership has yielded a gain or not. Transfer of ownership tax varies among the cantons; it typically amounts to between 1-3% of the purchase price or market value of the property. Some cantons only charge land register and notary fees instead of a transfer of ownership tax.
What others wanted to know.
Our property experts give an insight into a selection of the most frequently asked questions. You can submit your own question too. We will be happy to help you.
Marie K. (53), Ostermundigen
How can I save on taxes when selling a house?
The potential to make savings is particularly relevant to property gains tax. On the one hand, verifiable investments made to increase value during occupancy can be deducted. On the other hand, the costs associated with the purchase and sale of the property, namely the estate agent fees, advertising fees and, in certain cases, the land registry office fees for transferring the ownership and other costs are also tax-deductible. If you buy or build a new property within two years of selling, property gains tax can also be deferred in many cases.
Manuel H. (55), Herisau
I’m selling my house located abroad. Which taxes will I incur in Switzerland?
If you are selling a property located abroad, this can impact the income and property tax for which you’re liable in Switzerland. If the proceeds are transferred to a Swiss account, property taxes will be incurred in Switzerland. In addition, depending on the country and the double taxation agreement, the “foreign income” may also be relevant for determining the rate of income tax (progression) in Switzerland. Clarify the situation with your local municipal authorities in detail and also notify the authorities of how much tax you have paid abroad. This will ensure you are not taxed twice.
Nathalie S. (48), Allschwil
What do you need to know when selling an inherited property?
When selling an inherited property, the first step is to enter the transfer of ownership in the land register and reach an agreement on the sale among the heirs. It’s also important to clarify how much property gains tax will be payable based on the gain since the original purchase by the testator. Inheritance tax may also be charged depending on the canton.
More on inheriting property
Marie K. (53), Ostermundigen
How can I save on taxes when selling a house?
The potential to make savings is particularly relevant to property gains tax. On the one hand, verifiable investments made to increase value during occupancy can be deducted. On the other hand, the costs associated with the purchase and sale of the property, namely the estate agent fees, advertising fees and, in certain cases, the land registry office fees for transferring the ownership and other costs are also tax-deductible. If you buy or build a new property within two years of selling, property gains tax can also be deferred in many cases.
Manuel H. (55), Herisau
I’m selling my house located abroad. Which taxes will I incur in Switzerland?
If you are selling a property located abroad, this can impact the income and property tax for which you’re liable in Switzerland. If the proceeds are transferred to a Swiss account, property taxes will be incurred in Switzerland. In addition, depending on the country and the double taxation agreement, the “foreign income” may also be relevant for determining the rate of income tax (progression) in Switzerland. Clarify the situation with your local municipal authorities in detail and also notify the authorities of how much tax you have paid abroad. This will ensure you are not taxed twice.
Nathalie S. (48), Allschwil
What do you need to know when selling an inherited property?
When selling an inherited property, the first step is to enter the transfer of ownership in the land register and reach an agreement on the sale among the heirs. It’s also important to clarify how much property gains tax will be payable based on the gain since the original purchase by the testator. Inheritance tax may also be charged depending on the canton.
More on inheriting property
