Assessment of property taxes

If you sell your Real Estate, property gains tax will be levied on any increase in value. Depending on the canton, buyers and/or sellers may also be subject to transfer tax.

The difference between the sales price received and the value-enhancing investment costs incurred is subject to property gains tax. The purchase price and all value-enhancing investments made in the property are deemed to be investment costs. The transfer tax is calculated on the sales price.

As notional rental income, the imputed rental value is added to taxable income and is subject to income tax. Most cantons set an official tax value (cadastral value in the canton of Lucerne) for properties for wealth tax purposes. Wealth tax is levied on the taxable value less mortgages.