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Old 12.09.2016, 16:35
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CH Tax due on Property gifted in the UK

I'm due to be 'gifted' a property in the UK by my parents and wondered if any of you could explain to me the Swiss tax implications on this or point me in the right direction?
As I understand it the value of the property will need to be declared in my tax returns (I'm a C permit holder) as additional wealth & then taxed at 1-2% of value each year but what I'm not sure on is if I need to declare this as a gift here in Switzerland and pay one off tax on the property's value.
Any advice or insights greatly received
Thanks
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Old 12.09.2016, 16:48
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Re: CH Tax due on Property gifted in the UK

This thread might assist you:

gift from parents: tax question

Note that there is the usual amount of nonsense in the thread.

Edit:
Canton Zurich does not assess a gift tax on gifts from parents, according to this and the linked info sheet (p.2):

"Der Ehegatte, die Nachkommen des Erblassers oder Schenkers und ab 1.1.2007 die eingetragene Partnerin oder der eingetragene Partner sind von der Steuerpflicht befreit."

https://www.steueramt.zh.ch/internet...ungssteuer.pdf

Residents of Switzerland are normally taxed on their assets on a world-wide basis so this property would be subject to the wealth/ capital tax.

Last edited by Mullhollander; 12.09.2016 at 17:32.
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Old 12.09.2016, 16:50
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Re: CH Tax due on Property gifted in the UK

Parent to child gifts are tax free in Switzerland.
Edit: looks like this may very by canton and some cantons have limits.

Foreign properties are not taxed in Switzerland, but they are counted on your total worldwide income and wealth, that in turn affects the tax rates on your swiss income and wealth, pushing your higher in the tax progression.
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Old 12.09.2016, 16:52
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Re: CH Tax due on Property gifted in the UK

I will be watching this thread with interest as I may be facing the same issue pretty soon...
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Old 13.09.2016, 13:56
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Re: CH Tax due on Property gifted in the UK

Many thanks for the info and pointers - I'll let you know if I uncover any additional information
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Old 13.09.2016, 14:00
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Re: CH Tax due on Property gifted in the UK

Be aware that the giver has to live for 7 years or the gift becomes part of he estate for IHT tax purposes, it's a potentially exempt transfer at this stage.


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Old 13.09.2016, 14:28
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Re: CH Tax due on Property gifted in the UK

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Parent to child gifts are tax free in Switzerland.
Up to 13k/year or so.

Tom
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Old 13.09.2016, 14:29
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Re: CH Tax due on Property gifted in the UK

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Be aware that the giver has to live for 7 years or the gift becomes part of he estate for IHT tax purposes, it's a potentially exempt transfer at this stage.
In Ticino it's 10 years, other cantons will vary.

Tom
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Old 13.09.2016, 14:36
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Re: CH Tax due on Property gifted in the UK

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In Ticino it's 10 years, other cantons will vary.

Tom
I was talking about UK IHT which is levied at 40% above the bill rate band.
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Old 13.09.2016, 14:45
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Re: CH Tax due on Property gifted in the UK

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Up to 13k/year or so.

Tom
Like I mentioned, this varies by canton. So without referencing where that limit applies, your answer is useless.
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Old 13.09.2016, 14:48
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Re: CH Tax due on Property gifted in the UK

Beware, the U.K. Now assesses capital gains tax to non residents based on the difference between "probate*" value and sale value (if/when property sold). This since 1 Apr 16.

*The Apr 16 date applies if later than probate date.
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Old 13.09.2016, 18:54
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Re: CH Tax due on Property gifted in the UK

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Beware, the U.K. Now assesses capital gains tax to non residents based on the difference between "probate*" value and sale value (if/when property sold). This since 1 Apr 16.

*The Apr 16 date applies if later than probate date.
The person gifting is also liable to CGT on disposal of an asset. Market value is the disposal value for taxation purposes even if gifted or sold under market value to a related party.


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EDIT The date of death is the relevant valuation date, nothing to do with the date of probate.

Last edited by fatmanfilms; 14.09.2016 at 14:58.
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Old 18.09.2016, 13:53
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Re: CH Tax due on Property gifted in the UK

So I received the following response from Credit Suisse tax experts, which confirms earlier posts:

"related to a property abroad, you have to declare the property value + possible rental income “Satzbestimmend” (wage) on your annual tax statements.
However a “Schenkungssteuer” is excluded, and you do do not have to pay any Schenkungssteuer on it. Because the property is abroad and not in Switzerland, and your parents are not domiziled in Switzerland."

Hope this also helps any others
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