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, the following taxes and fees will be charged depending on the canton:

  • property transfer taxes  
  • land registry and notary fees

Will your new home mean a change of municipality? Use the tax calculator to find out how moving will affect your taxes.

Calculate the maximum purchase price

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

If you own a property, this will have an impact on:

  • income tax  
  • wealth tax

When you sell a property, you can expect the following costs, depending on the canton:

  • property transfer taxes  
  • property gains tax
  • land registry and notary fees   

The following taxes may apply if property is gifted or inherited:

  • inheritance tax
  • gift tax
  • property transfer tax (depending on the canton)
  • land registration fees (depending on the canton)

Home owners can benefit from the following tax deductions:

  • mortgage interest
  • indirect repayments to pillar 3a 
  • value-increasing investments, e.g., repairs, redecorating, maintenance work in or around the house
  • energy-saving investments, e.g., new, energy-saving windows or retrofitting a heat pump with a geothermal probe
  • maintenance costs as annual fixed-sum deductions (10% of the imputed rental value) or as effective costs   

Purchase

Property transfer tax

Property transfer 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 shared on a pro rata basis

Land registry and notary fees

  • These fees vary between cantons
  • Paid by the buyer, seller or shared on a pro rata basis

Ownership

Income tax

Income tax

Indirect repayment

Indirect repayment

Renovation and upkeep

Renovation and upkeep

Income tax

  • The imputed rental value is added to taxable income
  • Mortgage interest, upkeep costs and indirect repayments into pillar 3a can be deducted from taxable income
  • If the client owns several properties in different cantons, mortgage interest is deducted proportionally according to existing assets in the individual cantons

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

Renovation and upkeep

  • Costs of renovation or refurbishment that increase the property value (not those that maintain its value) may be deducted from taxable income

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 shared on a pro rata basis

Property gains tax

  • If you sell your own home at a profit, the income is taxable
  • Costs of renovation or refurbishment that increase the property’s value (not those that maintain its value) may be deducted from the profit
  • The 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 shared on a pro rata basis

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.