Key facts:
- Taxing imputed rental value correctly: Have it estimated and lodge an objection if the calculation is too high.
- Deduct maintenance costs and mortgage interest: Collect receipts and claim them for tax purposes.
- Promoting energy-efficient refurbishments: utilizing tax advantages by investing in energy efficiency.
Owning real estate in Switzerland entails various tax obligations. With forward-looking planning and knowledge of specific deduction options, property owners can effectively reduce their tax burden.
Taxing imputed rental value
Anyone who lives in their own home must pay tax on the so-called imputed rental value as income. This corresponds to the rent you would have to pay for your own property. At the same time, however, mortgage interest and maintenance costs can be deducted from taxable income. It is therefore advisable to check the estimate of the imputed rental value and, if necessary, lodge an objection to ensure fair taxation.
Deductible maintenance costs
Maintenance and repair costs that maintain the original condition of the property are tax deductible. This includes, for example, painting work or the repair of sanitary facilities. Value-enhancing investments that increase the value of the property, on the other hand, cannot be deducted. It is advisable to keep all receipts carefully and submit them with your tax return.
Utilizing energy-efficient renovations
Investments in energy efficiency, such as the installation of heat pumps or solar panels, can not only reduce energy costs, but also offer tax advantages. In some cantons, such costs can be deducted from taxes over several years. In addition, certain banks offer reduced mortgage interest rates for environmentally friendly renovations.
Optimal deduction of mortgage interest
Mortgage interest is fully deductible from taxable income in Switzerland. Careful planning of mortgage financing, including the choice of a suitable model and fixed interest rate, can help to reduce the tax burden. It therefore makes sense to compare different offers and, if necessary, consult an advisor.
Tax aspects of letting
Anyone who rents out their property must pay tax on the rental income as income. At the same time, however, expenses such as maintenance costs and mortgage interest can be deducted. Special rules apply to rentals to relatives at a rent below market value or short-term rentals via platforms such as Airbnb, which must be observed.
Property gains tax on sale
When a property is sold in Switzerland, property gains tax is levied on the profit made. The amount of this tax varies depending on the canton and the length of time the property has been held. The longer the period of ownership, the lower the tax may be. It is therefore advisable to find out about the cantonal regulations before selling and to seek tax advice if necessary.
Tips for your tax return
- Collect receipts: Collect all relevant receipts for maintenance work, renovations and mortgage interest in order to claim them on your tax return.
- Flat-rate deduction vs. actual costs: Check whether the flat-rate deduction for maintenance costs or the declaration of actual costs is more advantageous for you. In some cantons, you can choose between these options each year.
- Plan investments: Major renovations or refurbishments should be strategically spread over several tax years, if necessary, in order to make the most of the tax advantages.
Conclusion
Through careful planning and awareness of the various tax options, property owners in Switzerland can effectively reduce their tax burden while maintaining or increasing the value of their property.
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.