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Old 02.12.2012, 09:00
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Capital gains tax selling house

Does anyone know if you are taxable should you sell a house with the intention of leaving the country. I know that selling a house in England with the intention to leave the UK to set yourself up in another country if tax free, so is it the same here?

If so or if not so does anyone have any info about how this works?

Thanks
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Old 02.12.2012, 09:55
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Re: Capital gains tax selling house

If purchasing a home of greater value one may roll the Grundstückgewinnsteuer over... but I believe that this only applies to (primary residence) homes purchased in CH. Although I should point out my discussions with the SZ Steueramt revolved around purchasing in the US, no idea if there is any EU agreement... In any event, I expect to be on the hook for the Grundstückgewinnsteuer when leaving Switzerland.

Speak with your cantonal Steueramt for specifics on how it is handled in your canton.
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Old 02.12.2012, 16:43
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Re: Capital gains tax selling house

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Does anyone know if you are taxable should you sell a house with the intention of leaving the country. I know that selling a house in England with the intention to leave the UK to set yourself up in another country if tax free, so is it the same here?

If so or if not so does anyone have any info about how this works?

Thanks
It's not quite capital gains tax, which doesnt exist on any private gains in Switzerland. But a property transfer tax. It is on a sliding scale depending on how long you held the property to discourage flipping properties. Much under 5 years and it is a high %, over 10 years gets into sensible. As Meloncollie said there is rollover relief if you reinvest with [24 months] in another private residence, although I do believe unless you have already bought the property in question you have to pay the tax and get it back when you do buy.
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Old 02.12.2012, 18:08
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Re: Capital gains tax selling house

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Does anyone know if you are taxable should you sell a house with the intention of leaving the country. I know that selling a house in England with the intention to leave the UK to set yourself up in another country if tax free, so is it the same here?

If so or if not so does anyone have any info about how this works?

Thanks
There is no exemption to any taxes because your leaving Switzerland. Selling a private property in CH during the first 25 years of ownership generally leads to a tax charge. Not sure why anybody would actually bother to buy unless they intended to live there for a very long time as selling can take several years as the market is totally illiquid.
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Old 02.12.2012, 19:40
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Re: Capital gains tax selling house

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Not sure why anybody would actually bother to buy unless they intended to live there for a very long time as selling can take several years as the market is totally illiquid.
This is quite a blanket statement and doesn't quite resonate with my own experience here. Our first house here sold quickly (three weeks) and for what I consider to be a reasonably healthy profit and the value of the house we subsequently moved into has also apparently increased.

My own personal anecdotes won't overrule any data you have to support your statements, of course, and I'm sure that a house sale CAN take several years, but I don't think that you are right to say that house buying here can never work out well

On top of that, of course, there is emotion - you find the house you love, in the place you love and its for sale, not rent.....
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Old 02.12.2012, 19:44
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Re: Capital gains tax selling house

the property market in switzerland is generally slow moving, but of course there are some property hotspots which are the exception (e.g. central zurich).
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Old 02.12.2012, 19:46
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Re: Capital gains tax selling house

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the property market in switzerland is generally slow moving, but of course there are some property hotspots which are the exception (e.g. central zurich).
Or the Bernese Oberland (house no. 1)
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Old 02.12.2012, 20:43
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Re: Capital gains tax selling house

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There is no exemption to any taxes because your leaving Switzerland. Selling a private property in CH during the first 25 years of ownership generally leads to a tax charge. Not sure why anybody would actually bother to buy unless they intended to live there for a very long time as selling can take several years as the market is totally illiquid.
Certainly anything in Aargau that is priced reasonably will not be on the market long at the moment. The stuff that stays on the market is either in the boonies or is way overpriced (even in this inflated market).
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Old 02.12.2012, 21:48
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Re: Capital gains tax selling house

Be careful to distinguish between tax on gains (already discussed above in thread) and property transfer tax - which still exists in many Cantons. This is in addition to the tax on gains. Both taxes can be exempted/rolled over and are usually taxed on a sliding scale depending on how long you have owned the property.

In our case, after owning a property for 6 years in BL, there was zero charge for the property sales tax and as we are rolling over the profit into a new house, zero charge for gains tax.

Our house sold in 3 days. Well maintained and sensibly priced means it should sell anywhere.
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Old 03.12.2012, 15:55
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Re: Capital gains tax selling house

Thanks for all your comments. As i understood everything:

If i bought the house then sold for a profit quite soon after the original purchase then i would pay quite heavily a tax on the profit UNLESS i were the to re invest 100% and or possibly more in my next swiss house within the same tax period.

But my question is:

If i sell my home in CH with the intention to leave the country for good and using 100% of any gain made over the original investment to buy my next and as far as anyone is concerned my only main house of residence but this time in the UK, will they tax me on the profit or accept I'm taking the money to buy a home in the UK? As is the case when selling your home in the UK to buy here you dont pay any tax for liquidating the property in order to transfer funds to CH to buy again. Actually for that matter selling your home and taking the cash out of the UK is not taxable even if you don't buy another house here.

Thanks..
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Old 03.12.2012, 16:01
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Re: Capital gains tax selling house

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Thanks for all your comments. As i understood everything:

If i bought the house then sold for a profit quite soon after the original purchase then i would pay quite heavily a tax on the profit UNLESS i were the to re invest 100% and or possibly more in my next swiss house within the same tax period.

But my question is:

If i sell my home in CH with the intention to leave the country for good and using 100% of any gain made over the original investment to buy my next and as far as anyone is concerned my only main house of residence but this time in the UK, will they tax me on the profit or accept I'm taking the money to buy a home in the UK? As is the case when selling your home in the UK to buy here you dont pay any tax for liquidating the property in order to transfer funds to CH to buy again. Actually for that matter selling your home and taking the cash out of the UK is not taxable even if you don't buy another house here.

Thanks..
They would tax you

Why would they incentivise you to invest in property in another country?
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Old 03.12.2012, 16:01
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Re: Capital gains tax selling house

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Thanks for all your comments. As i understood everything:

If i bought the house then sold for a profit quite soon after the original purchase then i would pay quite heavily a tax on the profit UNLESS i were the to re invest 100% and or possibly more in my next swiss house within the same tax period.

But my question is:

If i sell my home in CH with the intention to leave the country for good and using 100% of any gain made over the original investment to buy my next and as far as anyone is concerned my only main house of residence but this time in the UK, will they tax me on the profit or accept I'm taking the money to buy a home in the UK? As is the case when selling your home in the UK to buy here you dont pay any tax for liquidating the property in order to transfer funds to CH to buy again. Actually for that matter selling your home and taking the cash out of the UK is not taxable even if you don't buy another house here.

Thanks..
You will be liable to Swiss tax in full on the sale. It's not the UK so how it works there does not apply.
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Old 03.12.2012, 16:03
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Re: Capital gains tax selling house

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Certainly anything in Aargau that is priced reasonably will not be on the market long at the moment. The stuff that stays on the market is either in the boonies or is way overpriced (even in this inflated market).
That was not the situation between 2003 -2007 when I was looking, very few houses sold & most on sale in 2003 were still available at the same price in 2007.
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Old 03.12.2012, 16:07
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Re: Capital gains tax selling house

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That was not the situation between 2003 -2007 when I was looking, very few houses sold & most on sale in 2003 were still available at the same price in 2007.
I wish I didn't know that your frames of reference were so dated - I ALWAYS believed what you wrote here, but now.....

(I'm not even going to ask what kind of data sample this applies to by the way - how many house in 2003 were still on sale in 2007 and at the same price )

PS you've been here a while, I hope you bought a house. Somebody smart on here says that if you stay a long time, you should buy )
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Old 03.12.2012, 16:24
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Re: Capital gains tax selling house

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Thanks for all your comments. As i understood everything:

If i bought the house then sold for a profit quite soon after the original purchase then i would pay quite heavily a tax on the profit UNLESS i were the to re invest 100% and or possibly more in my next swiss house within the same tax period.
There are certain things you can deduct from the "profit" before the tax is calculated.

But what's the alternative? Don't sell the house at a profit so you don't pay any tax ?
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Old 03.12.2012, 16:33
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Re: Capital gains tax selling house

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That was not the situation between 2003 -2007 when I was looking, very few houses sold & most on sale in 2003 were still available at the same price in 2007.
It was a pain trying to find a house with stabling for the horses - in 1893.
It was the same in 1897.

I think the situation improved in 1899 but I can't be sure. Should I check for you?
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Old 03.12.2012, 16:44
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Re: Capital gains tax selling house

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I wish I didn't know that your frames of reference were so dated - I ALWAYS believed what you wrote here, but now.....

(I'm not even going to ask what kind of data sample this applies to by the way - how many house in 2003 were still on sale in 2007 and at the same price )

PS you've been here a while, I hope you bought a house. Somebody smart on here says that if you stay a long time, you should buy )
I think the stock market has been a way better investment, no tax to pay & totally liguid !
Allowing B permit holders to buy was a one off boost to the market!
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Old 03.12.2012, 17:04
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Re: Capital gains tax selling house

Dont get me wrong everyone im not trying to get out of paying just trying to see if anyone here has direct experience of the same situation.

To the person who said this is not the uk... I think thats quite obvious, but as do many people do here is make comparisons on how things work in our home countries, so that info alone may have answered somebody else's question.

Very annoying and i see it a lot here (this is not UK/US) please give people a little more respect...
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Old 03.12.2012, 18:34
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Re: Capital gains tax selling house

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Dont get me wrong everyone im not trying to get out of paying just trying to see if anyone here has direct experience of the same situation.

To the person who said this is not the uk... I think thats quite obvious, but as do many people do here is make comparisons on how things work in our home countries, so that info alone may have answered somebody else's question.

Very annoying and i see it a lot here (this is not UK/US) please give people a little more respect...
It's equally annoying that your question had been answered by 2 posters, but you still played the 'back in the uk card' which is why I pulled you up!
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Old 03.12.2012, 18:42
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Re: Capital gains tax selling house

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It's equally annoying that your question had been answered by 2 posters, but you still played the 'back in the uk card' which is why I pulled you up!
Thank you so much for your help sir.
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