Real estate taxation in Switzerland is a complex area that impacts every stage of a property owner's life: purchase, ownership, and sale. Good tax planning can generate significant savings over the long term.
At purchase: transfer duties vary from 0% to over 3% of the purchase price depending on the canton. Notary fees and intercalary interest during construction should be factored into the tax planning.
During ownership: the imputed rental value (a notional income corresponding to approximately 60-70% of the market rent) is added to your taxable income, even if you live in your own property. In return, you can deduct mortgage interest, maintenance costs (flat rate or actual costs), and building insurance premiums. The strategy is to alternate between the flat rate and actual costs depending on the year, grouping renovation work to maximize deductions.
Imputed rental value reform: approved by popular vote on 28 September 2025, the abolition of the imputed rental value will come into force on 1 January 2029 (Federal Council decision of 1 April 2026). Up to and including the 2028 tax year, the current system remains fully applicable. From 2029, the imputed rental value will disappear for both primary and secondary residences, and the deduction for maintenance costs will be abolished except for rented properties. Planned renovation work should therefore ideally be scheduled before the end of 2028.
At sale: capital gains tax on real estate (IBGI) applies to the difference between the sale price and the purchase price (including value-enhancing investments). The rate is degressive based on the holding period: the longer you hold, the less you pay. A replacement purchase (reinvestment in another property) allows you to defer this tax.
Indirect amortization via pillar 3a allows you to maintain mortgage interest deductions while building up tax-deductible pension capital.
Our experts precisely calculate the tax impact of each option and recommend the optimal strategy for your situation.
