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)


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


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

» Real estate taxation in Switzerland

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