Taxes when selling a property: What taxes are due when selling a house?
Selling a property in Switzerland is a complex process in which many questions arise - the tax issue is one of the most important. Would you like to know what taxes you will have to pay and how you can legally minimise your tax burden? This article provides you with a clear overview of the most important taxes and costs so that you can optimally prepare your property sale.
What taxes are due on property sales?
There are two main types of tax on private house sales in Switzerland: property gains tax and, depending on the canton, transfer tax.
This is the most important tax that affects you as a seller. It taxes the profit you make on the sale of a property. The taxable profit is the difference between the sale proceeds and the total costs incurred for the purchase and sale.
Formula: Selling price - (acquisition costs + deductible expenses) = taxable profit
The amount of property gains tax depends heavily on the length of time the property has been owned. Short periods of ownership lead to significantly higher tax rates, while the tax burden decreases with longer periods of ownership. The exact rates vary from canton to canton.
Transfer tax:
This tax is due when a property changes hands. It is calculated on the purchase price. In most cantons, it is paid by the buyer, but in some (e.g. Basel-Landschaft, Fribourg) it is split between the buyer and seller or the seller pays it alone. It is important to note that some cantons (e.g. Zurich, Zug, Glarus, Schwyz) do not levy a transfer tax at all, only fees.
What other costs and fees may be incurred?
In addition to taxes, there are other costs that influence the sales proceeds. Transparent planning is crucial.
Broker commissionThe fee for a professional estate agent is usually between 2% and 4% of the sale price. However, these costs are fully deductible and can often be more than offset by a higher sale price.
Notary and land registry feesThese costs are incurred for the legally binding notarisation of the purchase agreement and entry in the land register. They are usually borne equally by the buyer and seller and are also deductible from the profit.
Costs in connection with the mortgageIf you have to cancel your mortgage early, you may have to pay a prepayment penalty.
What tips are there for saving on taxes when selling a house?
With the right strategy, the tax burden can be legally optimised.
Claiming deductible costsList all relevant costs that reduce the taxable profit. These include the estate agent's commission from we-net.ch, notary fees, but also value-enhancing investments such as renovations or refurbishments.
Pay attention to the duration of ownershipAs the tax decreases with the holding period, it can be worthwhile in certain cases to choose the time of sale strategically. In particular, the jump to a lower rate bracket can mean big savings.
Check tax deferralIf you reinvest the proceeds from the sale of your owner-occupied property in a new, owner-occupied property within a certain period (usually two years), the property gains tax is deferred. This is referred to as a replacement purchase.
How can taxes be legally avoided in Switzerland?
The term “avoiding taxes” is often misunderstood. It is not about avoiding taxes, but about making full use of the legal possibilities for optimisation.
Strategic consultingThe best way to “avoid” taxes is to seek professional advice. An expert like we-net.ch knows the cantonal differences and can help you utilise all legal deductions and options, such as tax deferral.
Comprehensive documentationKeep all invoices and receipts for value-enhancing investments, as they reduce the taxable profit.
Conclusion
Selling a property is a major financial decision. With the right knowledge about taxes and costs, you can significantly optimise your sales proceeds. Contact us us for a no-obligation consultation and find out how you can achieve the best price for your property.
