Property and taxes

How will buying a property affect my taxes?

Taxes arise as soon as you buy, sell or own a property. To get an overview of all the payments due, bear the following in mind.

How does owning property affect your tax return? We’ve summarized the main taxes applied to the sale, purchase and ownership of property.

When you buy a property, you’ll incur the following charges depending on the canton:

  • Property transfer tax
  • Land registry and notary fees

Will you also be changing the municipality you live with your new home? Use the tax calculator to find out how the change of residence affects your taxes.

Calculate the maximum purchase price

Use our calculator to find out how much you can afford to pay for your dream home.

Owning a property impacts:

  • Income tax 
  • Wealth tax

When you sell a property, you’ll incur the following charges depending on the canton:

  • Property transfer tax
  • Property gains tax
  • Land registry and notary fees

If you inherit or are gifted a property, the following charges can arise depending on the canton:

  • Inheritance and gift tax*
  • Property transfer tax
  • Land registry and notary fees

As a property owner, you can claim the following deductions:

  • Mortgage interest
  • Indirect repayments into pillar 3a
  • Value-preserving renovation and maintenance work such as deposits in renovation funds, gardening, repair/replacement of household appliances, painting, bathroom modernization, etc., as well as all ancillary property costs such as building insurance, etc.*
  • Value-adding investments, but only if they serve to increase energy efficiency or the use of renewable energies, e.g., solar installations, building insulation, etc., are deductible in most cantons (but not in all)

Purchase

Property transfer tax

Property transfer tax

Land registry and notary fees

Land registry and notary fees

Property transfer tax

  • May be due when real estate changes ownership (varies between cantons)
  • Paid by the buyer, seller or split pro rata

Land registry and notary fees

  • These fees vary between cantons
  • Paid by the buyer, seller or split pro rata

Ownership

Income tax

Income tax

Indirect repayment

Indirect repayment

Income tax

  • The imputed rental value is added to taxable income
  • Mortgage interest, value-preserving renovation, upkeep and ancillary costs and indirect repayments into pillar 3a can be deducted from taxable income
  • Value-adding investments, but only if they serve to increase energy efficiency or the use of renewable energies, e.g., solar installations, building insulation, etc., are deductible in most cantons (but not in all).

Indirect repayment

  • The repayments are paid into pillar 3a (e.g., UBS Fisca) and can be deducted from taxable income
  • Credit balances and payments into pillar 3a are tax-free during the term of the mortgage
  • Withdrawals are taxed separately from other income and at a reduced rate
  • The tax-relevant debt interest is higher than for direct repayments

Sale

Property transfer tax

Property transfer tax

Property gains tax

Property gains tax

Land registry and notary fees

Land registry and notary fees

Property transfer tax

  • May be due when there is a change of ownership of real estate (varies between cantons)
  • Paid by the buyer, seller or split pro rata

Property gains tax

  • If you sell your own home at a profit, the money received is taxable
  • Costs of renovation or refurbishment that increase the property’s value (but not those that maintain its value) may be deducted from the profit
  • Property gains tax depends on the length of ownership: the longer you owned the property, the lower the tax

Land registry and notary fees

  • These fees vary between cantons
  • Paid by the buyer, seller or split pro rata

Clarify tax issues early on

  • Check of the purchase price based on reference properties and location
  • Comprehensive information on the municipality, price level and tax rate
  • Development of a financing strategy that suits you
  • On request: a mortgage decision within 24 hours

Our experts are here for you – we look forward to speaking with you.