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Old 19.03.2019, 20:43
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Tax on property sale...

So I have a couple of questions...

Property sale with house, I get tax back if I buy within 2 years i’m told. Does that apply if I buy outside my canton also?

Building land which was meant for my house with already a permitted building project. If I sell just this I will pay the same kind of tax on it. However if I buy something within two years, do I get the tax back for this also?

I only own one piece of land, so it would be considered my primary and not some kind of secondary investment property.
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Old 19.03.2019, 22:11
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Re: Tax on property sale...

Ask the notary who's dealing with the sale, that way you should get reliable information, alternatively ask your accountant.
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Old 19.03.2019, 22:13
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Re: Tax on property sale...

See Schaffhausen Direct Taxation Art. 113 for answers to your questions:

http://rechtsbuch.sh.ch/fileadmin/Re..._6/641.100.pdf
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Old 21.03.2019, 21:56
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Re: Tax on property sale...

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See Schaffhausen Direct Taxation Art. 113 for answers to your questions:

http://rechtsbuch.sh.ch/fileadmin/Re..._6/641.100.pdf
Thanks for that.. I shared it with my bank who ended up writing the town.. So property tax would need to be paid on the gains.. Unless of course there is a home on there.. I guess i'll have to build then..
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Old 24.03.2019, 07:47
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Re: Tax on property sale...

If it is land without a house on it, if you sell it and you have a gain (after allowable deductions) the tax cannot be deferred.

How can land without a house be considered your primary residence? Unless you put a mobile home on it as a permanent structure ( which would need a permit).

Selling land with a project can be more difficult than selling land where buyers are free to choose whom to build with. It is also possible that there was a time limit as a condition to the building permit and if this has lapsed it is no longer valid.

Selling land without a project can take time, particularly if there are zoning restrictions, difficult access, or complicated connections to water, electricity and sewage drains.

If you decide to build the planned project, you could decide to build up to the point where a buyer can choose the inside finishings.
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Old 24.03.2019, 09:30
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Re: Tax on property sale...

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If it is land without a house on it, if you sell it and you have a gain (after allowable deductions) the tax cannot be deferred.

How can land without a house be considered your primary residence? Unless you put a mobile home on it as a permanent structure ( which would need a permit).

Selling land with a project can be more difficult than selling land where buyers are free to choose whom to build with. It is also possible that there was a time limit as a condition to the building permit and if this has lapsed it is no longer valid.

Selling land without a project can take time, particularly if there are zoning restrictions, difficult access, or complicated connections to water, electricity and sewage drains.

If you decide to build the planned project, you could decide to build up to the point where a buyer can choose the inside finishings.
Thanks for that update. We're trying to move ahead with a new bank and developer. We will have to fight the previous developer in court it seems to get back my significant deposit. Without anything having been built, they are claiming half the house cost in work that has gone into it. They are a complete joke, but that's outside the scope of this thread.
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Old 24.03.2019, 10:06
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Re: Tax on property sale...

If you sell your property in Kanton A which you bought for 1mio CHF for a profit of 100,000 CHF, you will get the Grundstückgewinnsteuer back if the next property you buy (in Kanton A, or anywhere else in Switzerland) costs you 1,100,000 CHF or more.

You can expect to get the money back when your Wohnsitz officially changes, i.e. when you move into your new property. If this is more than 2 years away, that isn't a problem provided you can show proof of having bought the more expensive property within 2 years.
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Old 24.03.2019, 13:31
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Re: Tax on property sale...

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If you sell your property in Kanton A which you bought for 1mio CHF for a profit of 100,000 CHF, you will get the Grundstückgewinnsteuer back if the next property you buy (in Kanton A, or anywhere else in Switzerland) costs you 1,100,000 CHF or more.

You can expect to get the money back when your Wohnsitz officially changes, i.e. when you move into your new property. If this is more than 2 years away, that isn't a problem provided you can show proof of having bought the more expensive property within 2 years.
Are you sure you can get it back if you move and purchase in a new canton? I was told that we would have to buy again in Schwyz to get it back. I guess this may be peculiar to SZ though.
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Old 24.03.2019, 14:17
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Re: Tax on property sale...

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Are you sure you can get it back if you move and purchase in a new canton? I was told that we would have to buy again in Schwyz to get it back. I guess this may be peculiar to SZ though.
Anywhere within Swizerland.
We had to complete a form on the property sale for the tax office, who then send a calculation for the capital gains tax, only to countermand it a few days later...
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Old 24.03.2019, 18:02
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Re: Tax on property sale...

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Are you sure you can get it back if you move and purchase in a new canton? I was told that we would have to buy again in Schwyz to get it back. I guess this may be peculiar to SZ though.
What AbFab said. I have done it cross intra- Kanton, Zurich and inter- Kanton (ZH -> ZG) and worked the same both times.
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Old 24.03.2019, 19:02
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Re: Tax on property sale...

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What AbFab said. I have done it cross intra- Kanton, Zurich and inter- Kanton (ZH -> ZG) and worked the same both times.
Amazed you would consider tax avoidance, you object when others do
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Old 24.03.2019, 19:23
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Re: Tax on property sale...

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Anywhere within Swizerland.
We had to complete a form on the property sale for the tax office, who then send a calculation for the capital gains tax, only to countermand it a few days later...
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What AbFab said. I have done it cross intra- Kanton, Zurich and inter- Kanton (ZH -> ZG) and worked the same both times.
Hmm will have to take a look at the SZ Steueramt at some point. Selling is not on the agenda, but would be handy to know. Given we get all sorts of tax advantages, maybe this is one we don’t have. I know that the acceleration of multiplier is punitive in the first 5 years and doesn’t revert to its minimum until 40 years!
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Old 24.03.2019, 19:48
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Re: Tax on property sale...

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Amazed you would consider tax avoidance, you object when others do
Haha, that isn't tax avoidance, it is merely deferral. It'll catch up with me one day. Those pesky facts tripping you up again, FMF?

Switzerland obviously feels tax should be deferred if put into the local economy, I'm sure you're well on board with that policy.
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Old 24.03.2019, 19:56
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Re: Tax on property sale...

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Haha, that isn't tax avoidance, it is merely deferral. It'll catch up with me one day. Those pesky facts tripping you up again, FMF?

Switzerland obviously feels tax should be deferred if put into the local economy, I'm sure you're well on board with that policy.
It could easily be avoidance if you keep the replacement property long enough.

Why don't you do the decent thing & pay the tax? Tax avoidance is legal however you object when people richer & more successful than yourself do the same.
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Old 24.03.2019, 20:00
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Re: Tax on property sale...

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It could easily be avoidance if you keep the replacement property long enough.

Why don't you do the decent thing & pay the tax? Tax avoidance is legal however you object when people richer & more successful than yourself do the same.
Again, facts failing you.

As Eyebeebe stated above, even if you keep the new property 40 years, you still have to pay GSGW when you sell it.

You must try harder to troll in future, however, please desist in derailing a perfectly good thread asking relevant questions about tax.
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Old 24.03.2019, 22:14
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Re: Tax on property sale...

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Again, facts failing you.

As Eyebeebe stated above, even if you keep the new property 40 years, you still have to pay GSGW when you sell it.

You must try harder to troll in future, however, please desist in derailing a perfectly good thread asking relevant questions about tax.
Looks like an extremely foolish investment then, when equities have a CGT rate of ZERO
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Old 25.03.2019, 08:36
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Re: Tax on property sale...

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Looks like an extremely foolish investment then, when equities have a CGT rate of ZERO
However, you can gift it to your children on your death without incurring tax liability...
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Old 25.03.2019, 10:27
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Re: Tax on property sale...

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However, you can gift it to your children on your death without incurring tax liability...
Does that assume they can afford the mortgage, which I understand is not always the case.
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Old 25.03.2019, 10:37
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Re: Tax on property sale...

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Are you sure you can get it back if you move and purchase in a new canton? I was told that we would have to buy again in Schwyz to get it back. I guess this may be peculiar to SZ though.
That information is false. It may have been true decades ago but not any longer.

See the current guideline by Kt. Schwyz, available under Ersatzbeschaffung on this page. The guideline explicitly mentions out-of-Kanton replacements.


By the way, the time by which you reach the minimum tax rate apears to differ by Kanton. For Schwyz it's 25 years (marginal tax rate rebate is 70%, so the maximum 30% marginal tax rate is reduced to 9%). For Zürich it's 20 years. I seem to remember it's 20 years as well for Cantons Thurgau/Thurgovia and St. Galllen.
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Old 25.03.2019, 10:42
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Re: Tax on property sale...

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Does that assume they can afford the mortgage, which I understand is not always the case.
Assuming you get to a decent age before carking it, the mortgage should only be for 35% of property value, max. I guess if you were unable to service the repayments on whatever that would be, you would be forced to sell up...and finally pay the outstanding CGT!
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