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Old 16.05.2014, 14:07
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Property gains tax

We're (well I am anyway) thinking long term of selling our flat to buy a house a bit further out of town. It's fair to say we'd make a tidy profit on the sale, which would be subject to property gains tax. However, if we were to invest the profit as deposit on the next purchase, would we be exempt from this tax? The Fribourg canton webpage doesn't have any information on this, nor the actual tax rate itself.
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Old 16.05.2014, 14:11
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Re: Property gains tax

I believe the next property must cost more than the sold one to avoid the gains tax.
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Old 16.05.2014, 14:19
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Re: Property gains tax

When we did it you had roll the entire gain through into the next property within a period of 2 years and then hold that second property for the requisite number of years otherwise you would trigger a retroactive charge.

I don't recall the price of the new property being the issue more the gain in property one being rolled over entirely into property 2, but as our second property was more than our first, we didn't really consider this in depth.

Ring up the tax office and give a what if example and they should clarify it for you plus give you any literature they may have. These taxes are Cantonal and the difference between the Cantons can be subtle such you may not really notice it but it can have a real impact in reality.
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Old 19.05.2014, 10:09
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Re: Property gains tax

See the last para. here, https://www.fr.ch/bef/files/pdf52/Im...mmobiliers.pdf

Seems so, if you reinvest in a reasonable time.
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Old 25.02.2015, 16:38
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Re: Property gains tax

Rehashing....

What else would count as reinvestment costs? I presume renovation projects etc, but what about removal costs?

Last edited by PaddyG; 25.02.2015 at 17:38.
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Old 25.02.2015, 17:02
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Re: Property gains tax

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Rehashing....

What else would count as reinvestment costs? I presume rennovation projects etc, but what about removal costs?
Renovations costs, yes. Assuming like for like.

Removals, no.
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Old 25.02.2015, 17:27
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Re: Property gains tax

Just a side note here about removal costs. I don't know about Fribourg, but in Vaud, but the removal costs are tax deductable on the end of year tax return. Obviously you need a receipt from the moving company...
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Old 26.02.2015, 10:43
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Re: Property gains tax

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Rehashing....

What else would count as reinvestment costs? I presume renovation projects etc, but what about removal costs?
Not sure how it is in Fribourg but here in Obwalden, it really depends on the type of renovation to classify as investment costs (i.e. something that you can deduct when you sell your house). Most normal-type renovations (new flooring, replace kitchen or bathroom, replacing windows, renovating roof) are considered maintenance costs (Unterhaltskosten). Unterhaltskosten can be deducted in the year in which they were performed but can not be used to offset capital gains. Investment type expenses would be mainly new construction like building an addition, adding a bathroom that did not exist previously, putting down flooring when previously there was just a raw concrete slab or raw beams. Sometimes renovations will be classified as a combination maintenance and investment for instance tiling an existing bathroom that had previously only been painted walls would be 50% maintenance and 50% investment.

Look at you Kantonal regulations for specifics. I googled "liegenschaftsunterhaltskosten fribourg" and came up with this:

http://www.fr.ch/scc/de/pub/index.cfm

This download has some clarification: pdf
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Old 26.02.2015, 11:12
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Re: Property gains tax

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Not sure how it is in Fribourg but here in Obwalden, it really depends on the type of renovation to classify as investment costs (i.e. something that you can deduct when you sell your house). Most normal-type renovations (new flooring, replace kitchen or bathroom, replacing windows, renovating roof) are considered maintenance costs (Unterhaltskosten). Unterhaltskosten can be deducted in the year in which they were performed but can not be used to offset capital gains. Investment type expenses would be mainly new construction like building an addition, adding a bathroom that did not exist previously, putting down flooring when previously there was just a raw concrete slab or raw beams. Sometimes renovations will be classified as a combination maintenance and investment for instance tiling an existing bathroom that had previously only been painted walls would be 50% maintenance and 50% investment.

Look at you Kantonal regulations for specifics. I googled "liegenschaftsunterhaltskosten fribourg" and came up with this:

http://www.fr.ch/scc/de/pub/index.cfm

This download has some clarification: pdf
Interesting. A brief scan of the pdf tells me that the type of renovations I had in mind would not be exempt; floors, kitchen, bathrooms etc.
Is there anywhere I can get an estimate of the capital gains tax rate? It seems to be dependant on how long we have owned the flat and is subject to evaluation by the tax office. There are no hard figures though.
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Old 26.02.2015, 11:21
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Re: Property gains tax

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Is there anywhere I can get an estimate of the capital gains tax rate?
Gewinnberechnung

Quote:
4. Steuerberechnung (Art. 51 DStG)
Die Grundstückgewinnsteuer wird nach folgendem Steuersatz erhoben:
> 22 % bei einer Eigentumsdauer bis zu 2 Jahren;
> 20 % bei einer Dauer bis zu 4 Jahren;
> 18 % bei einer Dauer bis zu 6 Jahren;
> 16 % bei einer Dauer bis zu 8 Jahren;
> 14 % bis einer Dauer bis zu 10 Jahren;
> 12 % bis einer Dauer bis zu 15 Jahren;
> 10 % bei einer Dauer über 15 Jahre.
Übersteigen die Gewinne aus dem Verkauf von Grundstücken, die weniger als 5 Jahre im Eigentum
waren, insgesamt 400 000 Franken im Kalenderjahr, so wird die Steuer auf dem Gewinn, der über
diesem Betrag liegt, um 40 % erhöht.
Die Gemeinden erheben einen Steuerzuschlag auf der Grundstückgewinnsteuer von 60 Rappen
pro Franken der vom Staat erhobenen Steuer.
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Old 26.02.2015, 11:37
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Re: Property gains tax

Selling costs of the property you are selling are deductible in Canton Zurich. Presumably this would included estate agent's fees. For us it was CHF130 for an ad on Homegate.

BTW, in ZH even if you are buying a property of the same or higher price that the selling price of your current one, within Switzerland, you will have to fill out all the forms for CTG and be sent a bill showing the amount due and it deducted again complete with paying-in slip for zero...
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Old 26.02.2015, 17:08
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Re: Property gains tax

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Selling costs of the property you are selling are deductible in Canton Zurich. Presumably this would included estate agent's fees. For us it was CHF130 for an ad on Homegate.

BTW, in ZH even if you are buying a property of the same or higher price that the selling price of your current one, within Switzerland, you will have to fill out all the forms for CTG and be sent a bill showing the amount due and it deducted again complete with paying-in slip for zero...
In Baselland/Jura we had to do the same thing - declare the sale and (18 months later) roll over purchase even though no gain was payable. I think this is pretty standard.
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