Hi there.


If we have an oversea property (e.g. bought it in another EU country), and currently living in Switzerland, when i got the tax declaration form, i need to fill in the current estimated value of my property.



I am wondering is there any special requirement for this property valuation? e.g. it must be done by certain administrative office? or any of property valuation done by a real-estate agent is also ok?



Many thanks for the info.
Cheers

Just put in your best guess. You don't have to back it with any proofs, unless they ask. Also it is not a crime to make mistakes on tax declaration or even outright forget to declare

If they ask for documents (very unlikely), any official looking piece of paper would do just fine. For example government cadastral valuation even if it bears no relationship to market prices.

Supply a very low valuation -like half the current market value...

I always used the insurance valuation of our house, then I always had a document showing this number to include in the supporting documents. Was never a problem in eleven years.

Rebuilding costs have no relationship with market value, The insurance value of my first flat in London was 3 times the purchase price.

So what stopped you from burning it down?

You would have to rebuild as it was listed. It's now worth about 20 times purchase price, the basement flat which had an extension is on the market for 100 times what was paid in 1992, seems a little high but time will tell.

Mine had been rented out, at a very attractive price, and with the tax, they use this rental income to estimate value. It's very low compared to current market value or indeed the price I paid in 2004. But then again, if you had to liquidate the property tomorrow how much could you get for it?

You might need to look up the rules/guidance for Bern. Here in VD you could put in an estimate for today, but you could also show an official document from the last 20 years so this might help.

If only that would work....I submit the valuation used on the property tax form in the country where the property is located.

Perhaps this is similar to the form used in Switzerland if you own property here and declare this on your taxes as in 5 years no one has ever asked me for any other information.

Unlike here, the tax valuation of that overseas property is much closer to the market value of that property, at least until recently when prices went up like crazy.

I guess you were being as honest as you could be. Were you asked for that document? Did you try it without? English property tax is based upon 1991 valuations for which a house falls into a range however I doubt that would work should I ever be asked for evidence.

No.

If the tax office of the country in which the property is located have a valuation for their own purposes (for example if you pay property tax there) then I would take that value.

If such a value does not exist or is not readily available. my tax office told me it was good enough to estimate the value myself (nach bestem Wissen und Gewissen)

I was asked by the taxman for the insurance value. He then wrote down my (already low) estimate further!

Real value: £320k
I entered: £250k
Ended up being: £150k

So half probably is a reasonable place to start.

Surely the insurance value covers the repair or replacement value of the building, or the components thereof that the insurance covers.

I don't see how you can insure land as there is no way land can disappear, unless maybe if you're in an area of acute coastal erosion, in which case you probably can't get insurance anyway, and the land won't be worth very much either.