Buying property: What are the tax implications?
Are you thinking of buying a property? Then, you need to think ahead and understand how this may affect your tax bill. Whether you're already a homeowner or looking to become one, here's the information you need to remember.
Taxes and costs on purchase
Buying a property involves costs and taxes. In most cantons, transfer fees, land registry fees, and notary fees are payable. These additional costs must be considered when buying a property.
Property owners: Your taxes
As a homeowner, you will be subject to income and wealth taxes. Understanding how these taxes are calculated and how your property can affect the amount is essential to maintaining your living standard.
Taxes and costs on sale
If you decide to sell your property, you may have to pay property gains tax (IGBI). These costs must be considered when selling your property.
Inheritance and donation tax
When a property is inherited or donated, costs such as inheritance and transfer taxes can arise in most cantons. If you are considering giving or bequeathing your property, consider these costs.
Tax deductions
As a homeowner, you can benefit from certain tax deductions, such as rental value tax for principal residences, indirect depreciation under pillar 3a or 3b and renovation and maintenance work. Knowing what these deductions are and how to apply them is key.
Buying, selling, and owning a property has significant tax implications. Understanding these implications is essential to avoid unpleasant surprises. Remember the above information to better understand the costs and taxes associated with buying, selling, and owning a property.