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Old 27.05.2015, 21:15
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Tax on rental income in Valais

I am having trouble agreeing my tax liability on the rental income for my ski apartment in Valais. My rental income only partly covers my expenses but the Swiss authorities calculate a net profit. I use the property myself about 1 month per year and make it available for rent through a local agency for the rest of the year. However rental is only actually about 1 month per year. The authorities want to treat my personal use as 11 months per year and therefore disqualify most of the heating costs etc in calculating the net rental. The heating cost are communal and include swimming pool etc. They also won't let me deduct more than 10% of the mortgage interest unless I declare my worldwide assets. Does anyone have experience of this problem? The treatment is obviously harsher than that for English rentals but are there ways to reduce the tax liability?
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Old 27.05.2015, 21:23
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Re: Tax on rental income in Valais

I believe the tax is based on what you would have to pay if you rented it yourself... irrespective of whether you use it or not. Do you live in the UK or in CH?


BTW how big is it- might want to rent it myself
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Old 27.05.2015, 21:40
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Re: Tax on rental income in Valais

For clarification, suggest reading the last two paragraphs on page one of the "Valais tax form for those living abroad". In French and German for your convenience:

http://www.vs.ch/NavigData/DS_10/M32...0wohnhafte.pdf

Last edited by MennoFloyd; 27.05.2015 at 21:53.
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Old 28.05.2015, 00:07
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Re: Tax on rental income in Valais

Thanks for advice. I live in the UK and the apartment is 149sq m located in Les Collons in the 4 Valleys ski area. Details on Owners Direct ref SZ560.

Regards,

David
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Old 28.05.2015, 08:56
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Re: Tax on rental income in Valais

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Thanks for advice. I live in the UK and the apartment is 149sq m located in Les Collons in the 4 Valleys ski area. Details on Owners Direct ref SZ560.

Regards,

David
Every property has a "theoretical" rental value (Eigenmietwert in german) - you are taxed on this value.

If the property is rented out the pro-rata eigenmietwert + the actual rental is the amount you are taxed on.

You can then deduct mortgage interest and upto a maxiumum of 20% of the total rental value (without receipts) as deductions. A greater level of deductions can be made but this needs individual receipts - and is often only done when you are make a major renovation.

In your case they take the actual rent + 11/12 of the eigenmietwert. Even if you are only there for 1 month a year.

Tax authorities consider a property should be used - either lived in or rented out.
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