Key facts:
- Property gains tax in the canton of Bern is calculated progressively and varies depending on the amount of profit and the length of time the property has been owned.
- For each full year of ownership, the taxable profit is reduced by 2%, up to a maximum reduction of 70% after 35 years.
- Certain costs such as value-enhancing investments, acquisition and sales costs can be deducted from profits in order to reduce the tax burden.
The sale of a property in the canton of Berne can bring a pleasing profit. However, before you enjoy the entire proceeds, you should consider the property gains tax. This tax is levied on the profit you make from the sale of your property. In this guide, you will learn how the tax is calculated, what deductions are possible and how you can optimize your tax burden.
What is the real estate gains tax?
Property gains tax is a cantonal tax levied on the profit from the sale of a property or land. The taxable profit is the difference between the sales proceeds and the so-called investment costs. The investment costs include
- Original purchase price of the property
- Value-enhancing investments, such as extensions or extensive renovations
- Incidental acquisition costs, such as notary and land registry fees
- Sales costs, such as broker commissions or advertising costs
This tax liability applies exclusively to the seller of the property.
Who has to pay the tax – and when is it due?
The tax liability arises for every person who sells a property in the Canton of Bern at a profit. The tax is due when the contract of sale is notarized. After notarization, the tax administration of the Canton of Berne issues the final tax assessment. As a rule, payment must be made within 30 days of receipt of the assessment. A portion of the sales proceeds is often withheld by the notary to ensure that the tax is paid.
How is tax calculated in the canton of Bern?
In the canton of Bern, property gains tax is calculated progressively, i.e. it increases with the amount of profit made. The length of ownership also influences the amount of tax.
- Short period of ownership: higher tax rate
- Long period of ownership: lower tax rate
For each full year of ownership, the taxable profit is reduced by 2%, up to a maximum of 70%. This means that the maximum deduction can be achieved after 35 years of ownership.
Here is an overview of the tax rates in the canton of Bern.
| Profit share (CHF) | Tax rate (%) |
| 0-5’300 | 1,44 |
| 5’301-5’600 | 2,40 |
| 5’601-13’800 | 4,08 |
| 13’801-27’200 | 4,92 |
| 27’201-54’000 | 6,41 |
| 54’001-134’400 | 7,26 |
| 134’401-335’500 | 7,81 |
| Over 335,500 | 8,10 |
Surcharges for short periods of ownership
If the property has been owned for less than five years, a surcharge is levied on the tax.
- Less than 1 year: +70%
- 1 to under 2 years: +50%
- 2 to under 3 years: +35%
- 3 to under 4 years: +20%
- 4 to under 5 years: +10%
Source: Guide to completing the tax return for property gains, 2024 edition
These regulations are intended to make short-term speculation unattractive and encourage long-term ownership. Please take this information into account when planning your real estate sale in the Canton of Bern.
What deductions are permitted?
Various deductions can be claimed to reduce the tax burden.
- Value-enhancing investments: Measures that increase the value of the property, such as an extension or comprehensive modernization.
- Incidental acquisition costs: Costs incurred when purchasing the property, such as notary and land registry fees.
- Selling costs: Expenses in connection with the sale, such as brokerage commissions or advertising costs.
Only proven and documented costs will be recognized. It is therefore advisable to keep all invoices and receipts in a safe place.
Replacement purchase: tax deferral possible
Under certain conditions, property gains tax can be deferred if the proceeds of the sale are invested in a replacement property. This applies if.
- The property sold was your permanently owner-occupied home.
- The entire proceeds from the sale are reinvested in a new, owner-occupied home within a reasonable period of time (usually two years).
In this case, taxation of the gain is deferred until the replacement property is sold.
What applies to inheritances, gifts or divorce?
In certain situations, property gains tax is not due immediately.
- Inheritances: In the event of a transfer of ownership by inheritance, the tax is deferred.
- Gifts: Tax deferral also applies to gifts.
- Divorce: Tax can also be deferred on property transfers in the context of a divorce.
Conclusion: Property winners in the canton of Bern
The sale of a property in the canton of Bern requires careful planning, particularly with regard to property gains tax. An early examination of the relevant provisions and complete documentation of all deductible costs can help to minimize the tax burden. In complex cases, it is advisable to consult a specialist in order to optimize the tax aspects of the sales process.
Arrange a consultation now https://properti.com/ch/de/immobilienberatung/
Data are without guarantee. The information on these Internet pages has been carefully researched. Nevertheless, no liability can be assumed for the accuracy of the information provided.