Sale of Your Property.

In Switzerland, properties are often sold at a profit. One reason for this is the growing population, which increases demand for residential property. On the other hand, political influence on the real estate market can also favor a profitable sale.

The tax administration therefore addressed the question of the most efficient taxation of such gains. They found the answer in a one-time special tax called the property gains tax. It is collected after notarial certification, upon entry in the land register.

In Switzerland, there are two systems at the cantonal level that regulate the taxation of properties. The monistic system is characterized by a one-time special tax resulting from the profits of property sales. In the case of properties in business assets, depreciation brought back is additionally taxed in profit or income.

In contrast, in the dualistic system, special taxes only have to be paid for transfers of ownership in private assets. However, for property sales in business assets, an income or profit tax is levied. In addition, the direct federal tax is charged, which does not apply to private assets. The monistic system occurs more frequently in Switzerland, not least due to the large cantons of Bern and Zurich, which apply it.

For properties that are occupied by the selling person themselves, the law of deferral applies: the tax owed can be deferred if the seller acquires a replacement property. For this, they have a maximum period of two years between sale and purchase. In this case, one speaks of a latent tax. It is characterized by the fact that it is owed but is directly transferred to the newly acquired property. This offers private individuals the opportunity to invest the entire proceeds from the sold property into the newly acquired one, as no taxes have to be paid in advance. In addition, the seller is not bound by cantonal borders when acquiring the replacement property. The law stipulates that the canton in which a property was sold but no new one was acquired within two years can collect all taxes. For a broker, precise knowledge of these tax peculiarities is essential so that they can advise their clients in the best possible way.