Property gains tax

Property gains tax

Do you want to sell your property in Switzerland?

The sale of a property and the realization of a profit can be affected by the application of property gains tax, which can be up to 40% depending on the canton and the holding period. It is essential to look into the calculation and the possibility of deferring tax early on in order to maximize profits.

If you need assistance in calculating and optimizing your property gains tax, please call us. Our experts will be happy to advise you and help you minimize the tax burden and make the most of your profits.

Real estate gains tax house

Leave the calculation and optimization of property gains tax
in Switzerland to us.

Leave the calculation and optimization of property gains tax
in Switzerland to us.

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Definition

Property gains tax is a special tax levied in Switzerland on the sale of real estate. Profits from the sale of real estate are subject to tax. The property gains tax is intended to prevent real estate speculation, whereby the property is bought and sold in the short term to make profit.

Calculation of the property gains tax

A profit results from the positive difference between sales proceeds and investment costs. Only the profit is taxed. Investment costs include the costs for the purchase, value-enhancing investments, brokerage fees, prepayment penalties as well as land registry and notary fees.

Tax rate

The tax rate depends on the net profit, the holding period and the canton. The tax rate of up to 40% is designed depending on the canton. Surcharges are usually charged for short-term holding periods. In general, the longer the property is owned, the lower the tax rate.
In the canton of Zurich, the tax rate is progressive. As profit increases, the tax rate gradually increases from 5% to 40%. Sales profits that already exceed CHF 100,000 are subject to a tax rate of up to 40%.

Suspension of the property gains tax

Property gains tax can be deferred so that it becomes due at a later date.
For example, if you buy a new property with the sale proceeds or receive an apartment through inheritance, donation or change of ownership and plan to use it for your own needs. A tax suspension is excluded for second and holiday homes as well as for rented properties.

Who pays the property gains tax?

The seller is liable for tax if he makes a profit from the sale of the property. If the seller does not meet his obligations, the tax authorities have privileged recourse to the buyer. Buyers should therefore protect themselves from recourse by the tax authorities. We would be happy to explain the possibilities to you.

We have assisted many clients in minimizing property gains tax.
Benefit from our experience.

We have assisted many clients in minimizing property gains tax.
Benefit from our experience.

These customers trust us:

Our clients:

Uljana Vorobeva

Prime Consulting is 100% recommendable and trustworthy! Very professional and uncomplicated.

Stephanie Fischer

Would give this a straight 6! From the telephone conversation to the execution very professional and sympathetic! The processing was really very fast. I will do my taxes here in the future!

Beate Balog

Competent, innovative, fair and flexible. I can highly recommend the Prime Consulting team! Very good value for money!

Sladjana Hafner

I can only recommend working with PrimeConsulting. The processing is always very professional and expeditious. Communication flawless, great service, highly recommended!

Abel Augstburger

High level recommendable services.

Beauty Bar

Expeditious, competent and very customer-friendly. I can only recommend it!

Arrange your free initial consultation now!

Top 5 tips on the property gains tax:

Subtract all possible selling costs

This includes, among other things, estate agent fees, advertisement costs, property transfer taxes, notary fees and land registry fees. Please do not forget to keep and submit the original receipts.

Deduct all value-adding investments

This includes, for example, creating a new garden, converting the attic, replacing the heating system and adding a conservatory or a carport.

Remove items from the sales contract

If items such as garden tools, furniture or similar are included in the purchase price, they must be mentioned separately in the purchase contract. This way they do not fall under the property gains tax.

Be cautious with the timing of the sale

The length of ownership has a positive effect on taxes. The following is true: the longer the seller owns the property, the lower the tax. As an example: If you bought a flat in January, try not to sell it in January, if possible. Instead, postpone the change of ownership until February so that you can complete another year of ownership. This will reduce the property gains tax.

Note the principle of replacement procurement

If a replacement property is acquired for own use within a reasonable period of time, the property gains tax does not apply.

We will gladly take the time to analyse your situation free of charge.

We will gladly take the time to analyse your situation
free of charge.

Do you have any questions, requests or concerns about this topic and would like to get to know our services better?
Then contact us directly now: our experienced experts will be happy to support you and guarantee you the highest quality!
Mehtap Uzuner

Mehtap Uzuner

    Tax expert with more than 8 years experience

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