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  #21  
Old 28.02.2021, 14:50
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Re: Non-Swiss, non-resident, inherited property and taxation?

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With a 60% price reduction it should be possible.
Depending on property would even be a good investment as then you would be a partial owner with a good chance of buying the rest at discount too.
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  #22  
Old 28.02.2021, 15:11
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Re: Non-Swiss, non-resident, inherited property and taxation?

Point taken, thanks for clarifying that my residency status -at any time- is not relevant to taxation of an inherited property.

Speaking of worldwide income, are the Swiss allowed to inquire about my worldwide bank accounts? It's on my Swiss tax form but doesn't seem to be a compulsory question.
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  #23  
Old 28.02.2021, 15:17
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Re: Non-Swiss, non-resident, inherited property and taxation?

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Depending on property would even be a good investment as then you would be a partial owner with a good chance of buying the rest at discount too.
Hmm, would rather sell if possible. Don't want to deal with taxes in possibly 3 countries!
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  #24  
Old 28.02.2021, 15:51
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Re: Non-Swiss, non-resident, inherited property and taxation?

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Ok, so it didn't matter that she never had permanent residency status in Italy?
She never lived in Italy, it is inherited property from her great grand mother, who left Trieste when it was still Austrian in 1892, and passed to her grandmother (who had never lived there) in 1943 when it was Italian, and thus down the line.

Also responsible for any taxes her mother didn't pay.

Tom
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  #25  
Old 28.02.2021, 15:58
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Re: Non-Swiss, non-resident, inherited property and taxation?

Maybe it’s worth discussing what kind of tax we’re talking about here. I don’t think you’re liable for any tax in Switzerland other than that on the property you own (e.g. income tax). You don’t need to declare taxes in Switzerland, only pay the taxes on the flat. If you don’t pay them, they’ll accumulate and one day, when you want to sell the flat, you’ll have a large pile of backtaxes plus interests plus admin fees. I can only imagine it’s not a lot money to pay every year, considering the potential sales value down the road.

Now, there must be someone living on that flat. If your mum and sister (the co-owners) live someplace else, who’s getting the rent on the flat? Or is it empty? I mean, 1 month’s worth of rent is probably more than enough to cover the full yearly taxes on that property.
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  #26  
Old 28.02.2021, 15:59
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Re: Non-Swiss, non-resident, inherited property and taxation?

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Point taken, thanks for clarifying that my residency status -at any time- is not relevant to taxation of an inherited property.

Speaking of worldwide income, are the Swiss allowed to inquire about my worldwide bank accounts? It's on my Swiss tax form but doesn't seem to be a compulsory question.
Switzerland uses worldwide income to determine taxation rate to be applied to income that is taxable in CH.

So for example, if you rented the flat and generated income in CH, they would use your worldwide income.to determine the tax rate and then apply it to the income generated by the rent.
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  #27  
Old 28.02.2021, 16:01
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Re: Non-Swiss, non-resident, inherited property and taxation?

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I mean, 1 month’s worth of rent is probably more than enough to cover the full yearly taxes on that property.
Except that if rented out, the rent is considered income and would be taxed using worldwide income to determine tax rate. So not sure depending on the value that one month would cover it.
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  #28  
Old 28.02.2021, 16:12
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Re: Non-Swiss, non-resident, inherited property and taxation?

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Now, there must be someone living on that flat.
"My mother continues to live in the apartment"

Tom
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  #29  
Old 28.02.2021, 17:12
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Re: Non-Swiss, non-resident, inherited property and taxation?

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Switzerland uses worldwide income to determine taxation rate to be applied to income that is taxable in CH.
As always in Switzerland: It depends on the canton. In canton Aargau, only the local net income of the property is relevant (for a non-resident).

If no rental income is generated the imputed rental value is used as income. Imputed rental income is in the range of around 60 - 70% what a comparable objects makes on the market. If the property is rented out and it generates less than 50% of the market value the imputed rental value might be used instead. Maintenance costs and mortgage interest can be deducted.
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  #30  
Old 28.02.2021, 17:13
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Re: Non-Swiss, non-resident, inherited property and taxation?

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"My mother continues to live in the apartment"

Tom
Jee, I forgot that by the time I got to the end of the thread.
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  #31  
Old 28.02.2021, 17:25
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Re: Non-Swiss, non-resident, inherited property and taxation?

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Speaking of worldwide income, are the Swiss allowed to inquire about my worldwide bank accounts? It's on my Swiss tax form but doesn't seem to be a compulsory question.
Who would forbid them? If you do not disclose your worldwide income, and it is relevant to calculate the tax rate they just guestimate it. If you do not object they will increase it each further year until you start to object. A very simple and effective approach.
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  #32  
Old 28.02.2021, 17:26
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Re: Non-Swiss, non-resident, inherited property and taxation?

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Doesn't work that way, except by legal agreement.

Tom
I'm not saying it does - but this is a family.

In this situation I'd just tell my mum this is costing me X CHF / year and she'd reimburse me. This is unlikely to be a huge sum of money.

OP have you not just talked to your mum about it?

Last edited by HickvonFrick; 28.02.2021 at 17:38.
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  #33  
Old 28.02.2021, 18:36
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Re: Non-Swiss, non-resident, inherited property and taxation?

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but this is a family.
It normally is, and it often doesn't end well with such.

MIL died 10 years ago, there are still "issues" with other family members regarding common property.

Tom
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  #34  
Old 28.02.2021, 18:44
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Re: Non-Swiss, non-resident, inherited property and taxation?

Could you not sign the property fully over to your mother (she might be taxed on the gift??). Then you’ll have no tax to pay on it. You would inherit it back later.... but then you could sell it!
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  #35  
Old 28.02.2021, 21:06
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Re: Non-Swiss, non-resident, inherited property and taxation?

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As always in Switzerland: It depends on the canton. In canton Aargau, only the local net income of the property is relevant (for a non-resident).

If no rental income is generated the imputed rental value is used as income. Imputed rental income is in the range of around 60 - 70% what a comparable objects makes on the market. If the property is rented out and it generates less than 50% of the market value the imputed rental value might be used instead. Maintenance costs and mortgage interest can be deducted.
Are you sure about this? I may be wrong but I thought it was Swiss practice to look at overall income to determine tax rate on Swiss income and not a Zurich thing?
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  #36  
Old 28.02.2021, 21:23
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Re: Non-Swiss, non-resident, inherited property and taxation?

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Are you sure about this? I may be wrong but I thought it was Swiss practice to look at overall income to determine tax rate on Swiss income and not a Zurich thing?
At least it says so here. Canton ZH vs. AG.
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  #37  
Old 28.02.2021, 21:49
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Re: Non-Swiss, non-resident, inherited property and taxation?

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Could you not sign the property fully over to your mother (she might be taxed on the gift??). Then you’ll have no tax to pay on it. You would inherit it back later.... but then you could sell it!
Unless she gives it to someone else.

Tom
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  #38  
Old 28.02.2021, 21:51
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Re: Non-Swiss, non-resident, inherited property and taxation?

Stop trying to be a tax cheat and just pay up, your life will be simpler, and legal.

Tom
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  #39  
Old 01.03.2021, 08:45
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Re: Non-Swiss, non-resident, inherited property and taxation?

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Depending on property would even be a good investment as then you would be a partial owner with a good chance of buying the rest at discount too.
Is that a rule- 60% reduction when selling to other heirs?
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  #40  
Old 01.03.2021, 08:50
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Re: Non-Swiss, non-resident, inherited property and taxation?

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Is that a rule- 60% reduction when selling to other heirs?
No.

But it's probably all that they are willing to pay.

Tom
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