Typical Taxes and Fees
When buying or selling a house in Switzerland, you will incur several taxes and fees. These may include:
- Property transfer tax: This tax is levied on the purchase price of the property and ranges from 1% to 3% depending on the canton.
- Notary fees: These fees are paid to the notary who handles the transaction. They usually amount to around 0.2% to 0.5% of the property’s value.
- Land registry fees: These fees are paid to the land registry to register the property transfer. They usually amount to around 0.1% to 0.3% of the property’s value.
- Real estate agent fees: If you use a real estate agent to sell or buy a property, you will need to pay their fees, which usually amount to around 2% to 3% of the property’s value.
In Switzerland, property tax is levied by the cantonal and communal governments and is based on the assessed value of the property. The tax rate varies depending on the location, but typically ranges from 0.2% to 1% of the assessed value.
Capital Gains Tax (CGT)
If you sell a property in Switzerland, you may be subject to capital gains tax. The tax rate depends on the canton and the length of time you have owned the property.
In Switzerland, inheritance tax is levied on the value of the inherited property. The tax rate depends on the canton and the relationship between the deceased and the heir.
If you receive a gift of property in Switzerland, you may be subject to gift tax. The tax rate depends on the canton and the relationship between the giver and the receiver.
Tax on Property Income
If you rent out your property in Switzerland, you will be subject to tax on the rental income. The tax rate ranges from 11.5% to 50%, depending on the location and the amount of rental income.
If you buy a house in Switzerland and use it as your primary residence, you may be eligible for certain tax deductions. These include deductions for mortgage interest and property tax. Additionally, if you are a first-time homebuyer and the property’s value is less than CHF 750,000, you may be eligible for a reduced property transfer tax rate. However, it’s important to note that Switzerland has relatively high taxes overall, so the tax advantages may not be as significant as in other countries.