Property taxes in Switzerland


Switzerland is certainly one of the most prosperous countries to live in. However, the high standard of living and income of the Swiss also means paying fairly high taxes, including on real estate. Please note that the Swiss tax system has three levels:

  • federal,
  • cantonal,
  • municipal.

Thus, it is possible to determine the exact amount of property taxes in Switzerland depending on the location of the property, its characteristics and the regional taxation system.

In general, in addition to taxes paid one-time when purchasing real estate, homeowners are required to pay the following taxes:

  1. annual property tax and land tax (from 0.05 to 3% of the cadastral value);
  2. income tax in all three federal units in case of renting out real estate (foreigners have the right to rent out their property for up to 11 months a year);
  3. mandatory tax on imputed rental income (possible income based on location and area), even if the property is not rented, the amount of which is from 10% of the amount of imputed income;
  4. tax on television and radio broadcasting – about 500 euros per year.

Real estate in Switzerland purchased by foreigners cannot be sold for 5 years after purchase. After this period, upon sale, the owner is required to pay capital gains tax – this tax is levied only at one, cantonal level, and amounts to 25% of the profit received.

Inheritance and gift taxes on real estate in Switzerland depend on the canton and degree of relationship of the recipient. The only person exempt from inheritance tax in all cantons is the owner’s spouse.



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