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| I file taxes in Zurich and have had discussions about this and explanations, as follows, from the Treuhand who advises me. The "value" of your property is denoted to be 70% of the purchase price. It is not normal or expected to report market value. This would count as personal wealth. The amount of any mortgage on the property is deducted from that.
if you are renting it out, you would be expected to include the rent as part of your income in the tax return. If you are not receiving an income from the property, the tax authority would assume you get a return of 4% of the above value. You can deduct from this income, certain costs - the mortgage interest, and costs for repair and maintenance (but not normally for home improvements which are deemed to increase the value of the property). Keep your invoices and mortgage statements.
The system is reasonable and because my mortage and maintenance costs have been high, the effect has been to reduce my taxable income, in my case.
IF you do decide to include your property in your Swiss Tax return, you may require assistance from a Treuhand, to help with the German forms and to ensure you report it corrrectly. So let me know if you want to know the contact details for the Zurich Treuhand I use. Excellent service at a reasonable price, he speaks English brilliantly too. (I would advise against using KPMG etc, they don't have the local knowledge, and fees extortionate for not alot). To the local Treuhander, we are "big" clients and you'll get treated better than from the big 4. So my advice is go Local : ) | |
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Hi, I am considering a move to Zurich, however if I can help it I would prefer not to sell my house and am not keen on renting it out. Looking at the above thread, am I correct in thinking that I can deduct the mortgage interest costs from my tax? How does that work?
Many Thanks