What is the property capital gains tax in Switzerland?
The property capital gains tax (in German Grundstückgewinnsteuer) is a tax levied by the cantons when selling a property. It applies to the gain realised, i.e. the difference between the sale price and the purchase price (after deducting expenses and investments).
Unlike income tax, this tax is progressive according to the holding period: the longer you keep your property, the lower the rate. This is a particularity of the Swiss tax system that rewards long-term ownership.
How does the degressive scale based on holding period work?
Each canton applies its own scale, but the principle is common: the tax rate decreases as the holding period increases. As an indication:
- 0 to 2 years : maximum rate (quick sale heavily taxed)
- 2 to 5 years : high rate, start of the degressive scale
- 5 to 10 years : significant reduction of the rate
- 10 to 20 years : clearly reduced rate
- More than 20 years : minimum rate, often close to exemption
Indicative rates by canton (range)
Rates vary greatly from one canton to another. Here are the indicative ranges for the main Swiss cantons:
| Canton | Indicative range |
|---|---|
| Geneva | 10 – 50 % |
| Zurich | 5 – 40 % |
| Vaud | 10 – 50 % |
| Bern | 5 – 40 % |
| Basel-Stadt | 10 – 45 % |
| Zug | 5 – 30 % |
| Ticino | 5 – 40 % |
| Valais | 5 – 30 % |
| Fribourg | 5 – 35 % |
| Neuchâtel | 10 – 40 % |
* Indicative ranges. The exact rate depends on the amount of the gain, the holding period and the precise scale of each canton.
Exemptions and reinvestment
In several cantons, certain sales are exempt or benefit from a tax deferral:
- Principal residence : often exempt from capital gains tax, under certain conditions
- Reinvestment : the sale proceeds reinvested in a new property can allow a tax deferral
- Inheritance and donation : special cases with specific rules
Frequently asked questions
Who pays the property capital gains tax?
It is the seller of the property who pays the capital gains tax. It is levied by the canton where the property is located, at the time of the sale.
How is the taxable capital gain calculated?
The taxable capital gain is the difference between the sale price and the purchase price, after deducting sale expenses, investments and improvements made to the property.
Does the holding period really reduce the tax?
Yes. Most cantons apply a degressive scale: after 5 years the rate drops, and after 10 to 20 years of holding it is significantly reduced. This encourages long-term ownership.
Can I avoid the tax by reinvesting?
In some cantons, reinvesting the sale proceeds in a new property allows a tax deferral. The conditions vary by canton and type of property.
Is this calculator reliable?
This calculator provides an indicative estimate based on simplified average rates. For an official amount, consult your canton's tax authority or a tax expert.
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