Tax on selling profit
If you sell your property at a higher price than you purchased it for, a tax will be paid on the profit.
What is considered a profit ?
Here is how the tax authorities will estimate the taxable gain:
Selling price – purchase price – work done in the property considered « added value » – the closing costs paid when the purchase of the property was made – if existant, the mortgage early termination fees – if existant, the real estate broker selling commission = taxable profit (to do this calculation precisely, we recommend a meeting with us)
What tax rate will be applied ?
Depending on the state (canton) the property is located in, its purpose (main residency, vacation home or investment property), and the number of years of possession, the rate will differ greatly.
Under certain terms, it is possible to delay the payment of the tax, by reinvesting the profit into a new main residency.
Below, the rate applied on the taxable profit depending on the state (canton). Every state applies a degressive rate based on the number of years you’ve been the owner of the property (this is done in order to avoid short term speculation) :
Vaud:
Up until 1 year :
1-2 years :
2-3 years :
3-4 years :
4-5 years :
5-6 years :
6-7 years :
7-8 years :
8-10 years :
30%
27%
24%
22%
20%
18%
17%
16%
15%
10-12 years :
12-14 years :
14-16 years :
16-18 years :
18-20 years :
20-22 years :
22-24 years :
24 years and more :
14%
13%
12%
11%
10%
9%
8%
7%
Geneva :
2 years of less : 50%
2-4 years : 40%
4-6 years : 30%
6-8 years : 20%
8-10 years : 15%
10-25 years : 10%
25 years and more : 0%
Geneva :
2 years of less : 50%
2-4 years : 40%
4-6 years : 30%
6-8 years : 20%
8-10 years : 15%
10-25 years : 10%
25 years and more : 0%
Fribourg:
2 years or less : 22%
2-4 years : 20%
4-6 years : 18%
6-8 years : 16%
8-10 years : 14%
10-15 years : 12%
15 years and more : 10%
When the total taxable gain exceeds CHF 400k for properties owned less than 5 years, the exceeding portion will be taxed at an additional 40%
Valais:
No of years
Profit up until CHF 50k
From CHF 50’001.- to CHF 100k
CHF 100’001.- and more
1st year
2nd year
3rd year
4th year
5th year
6th year
7th year
8th year
9th year
10th year
11th year
12th year
13th year
14th year
15th year
16th year
17th year
18th year
19th year
20th year
21st year
22nd year
23rd year
24th year
25th year
After 25 years
19.20%
18.00%
15.60%
14.40%
13.20%
12.00%
11.52%
11.04%
10.56%
10.08%
9.60%
9.12%
8.64%
8.16%
7.68%
7.20%
6.72%
6.24%
5.76%
5.28%
4.80%
4.32%
3.84%
3.36%
2.88%
1.00%
28.80%
27.00%
23.40%
21.60%
19.80%
18.00%
17.28%
16.56%
15.84%
15.12%
14.40%
13.68%
12.96%
12.24%
11.52%
10.80%
10.08%
9.36%
8.64%
7.92%
7.20%
6.48%
5.76%
5.04%
4.32%
2.00%
38.40%
36.00%
31.20%
28.80%
26.40%
24.00%
23.04%
22.08%
21.12%
20.16%
19.20%
18.24%
17.28%
16.32%
15.36%
14.40%
13.44%
12.48%
11.52%
10.56%
9.60%
8.64%
7.68%
6.72%
5.76%
3.00%
Neuchâtel:
In this state, the calculation is a little more complex. First, a tax amount will be evaluated based on the taxable profit, as shown below :
- Up to 5k, tax rate of 10% but capped at CHF 500.-
- From CHF 5’001.- to CHF 10k, 15%, capped at CHF 1’250.-
- From CHF 10’001.- to CHF 30k, 20%, capped at CHF 5’250.-
- From CHF 30’001.- to CHF 50k, 25%, capped at CHF 10’250.-
- From CHF 50’001.- to CHF 75k, 30%, capped at CHF 17’750.-
- From CHF 75’001.- to CHF 100k, 35%, capped at CHF 26’500.-
- From CHF 100’001.- to CHF 135k, 40%, capped at CHF 40’500.-
- From CHF 135’001.- and higher, 33%, no cap
This rate will be then increased or decreased based on the number of year of possession of the property, as shown below:
- 1 year or less : increased by 60%
- 1-2 years : increased by 45%
- 2-3 years : increased by 30%
- 3-4 years : increased by 15%
- 5-6 years : decreased by 6%
- 6-7 years : decreased by 12%
- 7-8 years : decreased by 18%
- 8-9 years : decreased by 24%
- 9-10 years : decreased by 30%
- 10-11 years : decreased by 36%
- 11-12 years : decreased by 42%
- 12-13 years : decreased by 48%
- 13-14 years : decreased by 54%
- 14 years and more : decreased by 60%
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