Tax law: Real estate in Switzerland and abroad: how to declare it?

The time has come to declare taxes, and you are wondering what to do with your real estate? Lawrence explains how to declare them.

In legal language, “real estate” means any property. This term will appear in this article. 

According to Swiss law, taxes on real estate are levied where the property is located. 

Let’s first make a distinction between real estate located in Switzerland and real estate located abroad.

Your property is located in Switzerland:

It will have to be declared because it is taxable. There are three elements to consider:

  1. Wealth tax

Owners of land, apartments and/or houses must declare their properties for wealth tax purposes. The tax is levied according to the tax value of the property and according to a calculation method that differs in each canton.  

Debts will be deducted from the value of the property.

  1. Property tax

Property tax is levied on any owner or usufructuary of a building. Debts are included. 

The method of calculation depends on the canton, some do not levy it.

  1. The rental value

Owners must declare the rental value of their property. This is the value that the property would have if it were rented out. This allows mortgage interest and maintenance costs to be deducted from the tax return. 

 

Your property is located abroad:

You will not have to pay tax on the property in Switzerland, but only in the country where it is located. 

However, it is compulsory to declare it, under penalty of a fine! With the law on the exchange of bank data, it is difficult to conceal a property abroad. 

The declaration is mandatory, because the tax and rental value of the property abroad affects the level of tax on your income in Switzerland. 

 

You will be able to declare your properties when you complete your tax declaration. This article tells you everything you need to know about it!

If you need help or don’t know how to go about it, Lawrence will assist you with your tax declaration!

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