- Due diligence costs for the purchase of real estate
- Costs associated with a contract for purchase of real estate and registering title
- Tax or duty on the acquisition of shares in a company owning real estate
- Capital gain taxation on future disposal of real estate or shares in a company owning real estate
jurisdiction
1. Due diligence costs for the purchase of real estate
1.1 Municipal search
Cost
Map/zoning plan:
EUR 10-EUR 70
VAT
7.7%
1.2 Utility search (each service)
Cost
Depends on time spent and size of land.
VAT
N/A
1.3 Land registry search (per search)
VAT
Nil
1.4 Company search, per company
VAT
7.7%
1.5 Survey/Valuation fee, approx
VAT
7.7%
1.6 Phase 1 Environmental survey
VAT
7.7%
2. Costs associated with a contract for purchase of real estate and registering title
2.1 VAT on price
Cost
0% – approx. 3.3% of purchase price (rates are regulated by cantonal law and vary accordingly).
VAT
7.7%
2.2 Transfer duty
3. Tax or duty on the acquisition of shares in a company owning real estate
Real estate transfer tax on the sale/purchase of shares in a qualifying real estate company: 0%–3.3% (rates are regulated by cantonal/municipal law and vary accordingly). Share transfer tax (stamp duty) if a contractual party or an intermediary is a securities dealer for stamp tax purposes: 0%–0.3% (depending on contractual parties and type of shares). Possible cantonal stamp duties if purchase agreement is notarized (voluntary) or concluded in certain cantons.
4. Capital gain taxation on future disposal of real estate or shares in a company owning real estate
4.1 Tax on capital gains on the disposal of the real estate itself
- Sale by a company (Swiss resident or not): 8.5% profit tax on federal level (flat rate) plus – based on cantonal law where the real estate is situated – ordinary cantonal profit tax (up to approx. 21%) or cantonal real estate capital gains tax.*
- Sale by an individual (Swiss resident or not) out of private assets: no federal tax but cantonal real estate capital gains tax.*
- Sale by an individual (Swiss resident or not) out of business assets (real estate dealer): profit tax on federal level (progressive, up to 11.5%) plus – based on cantonal law where the real estate is situated – ordinary cantonal income tax (progressive, up to approx. 30%) or cantonal real estate capital gains tax.*
*Cantonal real estate capital gains tax is based on profit (progressive) and holding period and the rates vary between 0% and 60%
4.2 Tax on capital gains on the disposal of shares in a company owning real estate
- Sale by a Swiss resident company: 8.5% profit tax on federal level on capital gain on shares (potential participation relief) plus – based on cantonal law where the real estate is situated – ordinary cantonal profit tax (up to approx. 21%, potential participation relief) or cantonal real estate capital gains tax*.
- Sale by a non-resident company: cantonal real estate capital gains tax* (relief/exemption might be possible based on applicable double tax treaty).
- Sale by a resident individual (depending on whether shares are held as private or business assets): tax exempt or taxable up to 11.5% at federal level, and – based on cantonal law where the real estate is situated – ordinary cantonal income tax (progressive, up to approx. 30%) or cantonal real estate capital gains tax*.
- Sale by a non-resident individual: based on cantonal law where the real estate is situated – cantonal real estate capital gains tax* (relief/exemption might be possible based on applicable double tax treaty).
*Cantonal real estate capital gains tax is based on capital gain (progressive) and holding period and the rates vary between 0% and 60%.
