Buying property: taxes to consider

Buying a property is not limited to financing. It also involves tax implications that need to be anticipated.

These elements influence:

• the overall cost of the project,

• your annual tax burden,

• and your long‑term wealth strategy.

Taxes related to the acquisition

When purchasing a property, several taxes and costs may apply:

• notary fees,

• potential transfer taxes,

• administrative costs linked to the transaction.

These charges should be included in your budget from the outset

Ongoing taxation of the property

Once you become a property owner, your property is reflected in your tax situation.

This may include:

• the inclusion of the property in your overall assets,

• its impact on your total tax burden.

Property taxation varies depending on:

• the canton,

• your personal situation,

• the type of property.

Imputed rental value

In Switzerland, a specific concept applies to owner‑occupied properties: the imputed rental value.

This represents a theoretical income corresponding to the rent you could obtain if the property were rented out.

This value is generally:

• added to your taxable income,

• and affects your overall tax burden.

Note: The abolition of the imputed rental value was approved by Swiss voters in 2025 and is expected to come into force in the coming years, following a transition period.

Potential tax deductions

Property ownership may also allow for certain tax deductions, including:

• mortgage interest,

• certain maintenance costs,

• expenses related to preserving the property.

These deductions can contribute to optimising your tax situation.

Tax implications upon resale

Owning a property also has tax consequences when it is sold.

Depending on the case, this may include:

• a real estate capital gains tax,

• calculated based on the holding period and the realised gain.

These aspects should be considered from the outset of the project.

A tax framework that varies by situation

Property taxation depends on several factors:

• the location of the property,

• your tax status,

• how the property is held.

A personalised approach is therefore essential to accurately assess the impact.

Integrating taxation into your project

Tax considerations should be included from the early stages of your project.

They help to:

• gain a full view of the total cost,

• structure financing efficiently,

• align the project with your broader financial strategy.