A cantonal tax
The property gains tax is levied by the canton where the property is located, not by the federal government. Each canton sets its own rates, so the same profit can be taxed quite differently in Geneva, Zurich or Valais.
How the taxable profit is calculated
The taxable profit is roughly the sale price minus the purchase price, minus the costs the canton accepts as deductions. These usually include investments that increased the value of the home (an extension or a major renovation, for example) and costs linked to the purchase and the sale, such as notary and agent fees. Ordinary maintenance is usually not deductible.
The longer you own, the less you pay
In most cantons, the rate goes down the longer you have owned the property. Owners who sell after a short time often pay a higher rate, while long-term owners can benefit from large reductions.
Deferring the tax when you buy again
If you sell your main residence and buy a new one in Switzerland within a reasonable time, you can usually defer the tax on the part of the profit you reinvest. If you leave Switzerland, this deferral generally does not apply.
Who calculates it and when?
The tax is assessed by the cantonal tax office after the sale. In some cantons, the notary withholds or secures an amount at the signing. Many cantons publish online calculators, and your notary or a tax adviser can give you an estimate before you sell.
Keep your receipts
Invoices for renovations and the costs of the purchase reduce your taxable profit. Gather them before the sale: it can save you thousands of francs.
Frequently asked questions
Is there a federal tax on property gains in Switzerland?
No. Profits from selling a private home are taxed by the canton through the property gains tax.
Do I pay property gains tax if I sell at a loss?
No. The tax only applies to a profit. If you sell for less than your costs, there is nothing to pay.
Can I deduct the agent's fee?
In most cantons, yes. The agent's commission is usually accepted as a cost of the sale.