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Old 16.05.2021, 14:41
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Taxation of property in your home country

Hello.

I own two houses in Portugal that I will rent when I move to Switzerland (one being my current residence).

I know that for the renting income, taxation will depend on any agreements existing between Portugal and Switzerland but what about the property it self ? Will it be taxed in Switzerland ? If so how ?

Thanks in advance

GT
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Old 16.05.2021, 15:20
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Re: Taxation of property in your home country

You have to declare it as wealth and it will influence the % of wealth tax you pay on your Swiss stuff and other wealth, if any, but you shouldn't have to pay double tax on the Portuguese property.
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Old 16.05.2021, 15:32
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Re: Taxation of property in your home country

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You have to declare it as wealth and it will influence the % of wealth tax you pay on your Swiss stuff and other wealth, if any, but you shouldn't have to pay double tax on the Portuguese property.
Correct. And don't be concerned about wealth tax. The Swiss tax authorities won't value your Portuguese assets at full value, for a start, and secondly, the percentage tax you have to pay is minimal. You're probably looking at a few hundred francs p.a.

People more knowledgeable than me will let you know about certain deductions available to you for expenditure on your Portuguese houses.
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Old 16.05.2021, 16:25
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Re: Taxation of property in your home country

To add, the rental income will be taxable in Portugal, but you still have to declare it here. It will not be directly taxed, but added to your taxable income for the purpose of calculating your tax rate, so you will end up with higher tax on your Swiss income. Which I find quite sneaky.

Last edited by komsomolez; 16.05.2021 at 16:51.
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Old 16.05.2021, 17:32
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Re: Taxation of property in your home country

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To add, the rental income will be taxable in Portugal, but you still have to declare it here. It will not be directly taxed, but added to your taxable income for the purpose of calculating your tax rate, so you will end up with higher tax on your Swiss income. Which I find quite sneaky.
... but if you have mortgages on the properties, the interest is deductible.herd in Switzerland. I assume that's not much, but it's something. Property management expenses (e.g. agents) are deductible too.
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Old 16.05.2021, 18:07
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Re: Taxation of property in your home country

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... but if you have mortgages on the properties, the interest is deductible.herd in Switzerland. I assume that's not much, but it's something. Property management expenses (e.g. agents) are deductible too.
And the mortgage value gets deducted from the value of the property.

Tom
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