Thread: House buying
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Old 12.05.2008, 16:38
meloncollie meloncollie is offline
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Re: House buying

Capital gains are handled differently in the various cantons. To give you an idea, here is how it is figured in canton SZ, from the cantonal website:

http://www.sz.ch/steuern/grundstueck...uer/index.html

ETYA - link is not behaving nicely Click on 'Wegleitung zur Grundstückgewinnsteuer', then on 'Steuerberechnung'

As you can see, if you sell within the first year, you'd be looking at a 40% increase in the tax on the profit, dropping with each year of ownership until you have held the property a full 5 years. After that, there is a reduction in the tax, up to 70% after 25 years of ownership.

The tax policy is there to discourage speculation.

YMMV in other cantons.

This of course assumes that you actually sell the house at a profit... Be aware that in many areas houses do not appreciate or appreciate far more slowly than houses have in other countries. Do make sure you understand the peculiarities of the Swiss real estate market before making investment decisions.

ETA: Also, make sure you are figuring Eigenmeitwert (the theoretical rental value of your house, which is then added to your income, and upon which you will pay income tax) into your total cost calculation.

Last edited by meloncollie; 12.05.2008 at 17:14.
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