Taxes

INDIVIDUAL TAXES

Tax liability of the legal entity that holds the real estate

Corporate bodies that hold real estate are taxed separately like individuals. The following corporate bodies are thus taxed separately:

  • Company limited by shares
  • OEIC
  • CEIC
  • Limited partnership for collective investment schemes
  • Limited liability company (Ltd)

Exemptions

Investment vehicles that are not corporate bodies are not taxed separately:

  • Contractual investment fund
  • Limited partnership, which is suitable as a result of the 2 types of partner (general partner and limited partner [financial backer]) for private indirect property investments for tax purposes as well
  • General partnership (largely irrelevant here)
  • Sole proprietorship

“Double Taxation”

  • Taxation of earnings or income
    • This investment structure has the disadvantage of so-called double taxation
      • Taxation of earnings of the legal entity that holds the real estate
      • Taxation of dividends to shareholders as income
    • However, the legislator has implemented measures in the context of tax harmonisation to mitigate the effects of this double taxation
  • Taxation of capital or property
    • Tax authorities also tax share capital twice
      • Liability of the legal entity which holds the property for capital tax on its corporate capital
      • Taxation of shares or capital shares as personal assets of the shareholder or partner

Taxes payable on the acquisition of a property company

» Real estate taxation in Switzerland

REAL ESTATE TAXATION

You will find a general overview of real estate taxation at:

» Real estate taxation in Switzerland

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