How Much Capital Gains Tax on a Property Sale in Switzerland?

Find out how property sales are taxed in Switzerland, both private and business-related, and which cantons apply standard corporate tax rates to business property sales.

What Does Capital Gains Tax Mean in Switzerland?

In Switzerland, the term capital gains tax can refer to two different types of tax, depending on the canton:

1. Profit from a property sale: In most cantons, this is called the real estate gains tax, though it is sometimes also referred to as capital gains tax. It’s a special tax levied in all cantons when property is sold. Depending on the system in place, it may apply only to private sales (dualistic system) or also to business sales (monistic system).
2. Profit earned by a company: In cantons that follow a dualistic system, the profit from a business property sale is taxed under the standard capital gains tax as would apply to any business profit.

Capital Gains Tax on a Private Property Sale

When a private property is sold, every canton charges a real estate gains tax (sometimes called capital gains tax). The taxable profit is the increase in value achieved through the sale compared to the original purchase price.

The tax rate may be flat or progressive depending on the canton. In all cantons, the rate decreases once the property has been held for a certain period, while quick resales are penalized with a surcharge.

Responsibility for collecting the tax varies: in some cantons it is collected by the municipality, in others by the canton itself, and in some cases by both. The federal government does not levy this tax.

Capital Gains Tax on a Business Property Sale

For business-related property sales, the tax treatment depends on the canton where the property is located. Two systems are in use:

Monistic System

All property sales are subject to real estate gains tax, whether the seller is a private individual, a self-employed property trader, or a company. This system applies in the cantons of Zurich, Bern, Uri, Schwyz, Nidwalden, Basel-Stadt, Basel-Landschaft, Ticino, and Jura.

Dualistic System

In all other cantons, the rules distinguish between private and business-related sales:

• Business sale (company): taxed under standard corporate gains tax
• Business sale (individual): taxed as income tax
• Private sale: subject to real estate gains tax

How High Is the Tax on a Business Property Sale?

Profits from a business property sale are taxed at normal capital gains tax rates. Depending on the municipality, these rates usually range between 11% and 21%.

How High Is Capital Gains Tax on a House Sale?

The real estate gains tax rate depends on the canton and, in some cases, the municipality. Depending on how long the property was owned, rates typically range from 10% to 40%.