Buying property in Switzerland - restrictions and taxes
The reasons for buying real estate in Switzerland. Restrictions on the acquisition of real estate in Switzerland. The tax effect of obtaining a residence permit and a tax on inheritance.
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Buying property in Switzerland - restrictions and taxes
Reasons for buyingreal estate in Switzerland
The reasons for customers' interest in real estate in Switzerland can be very different - it is the image and quality of life, buying a house for holidays or for permanent residence, education, relocation for business purposes, investment and security.
Various reasons for the acquisition of real estate entail different consequences - not only in relation to tax and legal aspects of the issue, but also in relation to matters of inheritance, financial structuring and asset allocation. In addition, the cost of acquisition, possession and sale of different in each case.
One of the main causes of long-term investments in the Swiss real estate are the political, legal and economic stability of Switzerland, as well as the stable Swiss franc (CHF). In addition, it should be called quality of life in Switzerland with its low crime rate, outstanding construction achievements, excellent education and excellent medical facilities.
The procedure for the acquisition, possession and sale of real estate and the tax consequences primarily regulated at the cantonal and communal levels.
In practice, each individual transaction must be analyzed on the basis of local laws and regulations, and in this you will need the help of experts.
In accordance with thefederal law on theacquisition of real estateby citizensof other countries(alsoknownas the law"Lex Koller"),the purchaseof residential property inSwitzerlandfor foreignersis limited.Basedon bilateral agreementsbetween the EUand Switzerland,Swiss lawsmake it easier topurchaseresidential propertyfor the citizens ofthe European Union.In summary, theresidential real estatecan be purchasedon the following conditions:
Buying a homefor theholidaypartywithout a residence permit
Purchaseof residential propertyby citizensof EU member states/ EFTA countrieswith residence permits(type Bor C)
One houseas aprimary residence
Purchaseof residential propertyby citizensof third countries(non-EU)with a residence permit(type B)
Purchaseof residential propertyby citizensof third countries(in the EUnevhodyaschih)withpermanent residence permit(type C)
The tax consequences of receiving a residence permit and inheritance tax
Differences residence permits for citizens of EU member states and third countries
In Switzerland, there are no restrictions on the purchase of residential property by citizens of EU Member States having a residence permit type B or C for the purchase of residential property in addition to the main residence of third-country nationals need to wait to obtain a permanent residence permit (type C).
Purchase and sale of real estate by residents
With the exception of the cantons of Zurich and Schwyz, all cantons levy tax purchase price or value of the property transfer tax. In most cantons, the buyer pays the property transfer tax, but some tax payable in the amount of 50% of each of the parties or by one party completely in accordance with the contract of sale. Transfer tax calculated differently in each Canton, and may vary from 0.5% to 3%.
In addition to this, most cantonal land registry fees are payable in a few tenths of a percent of the purchase price. In exceptional cases, this fee can be up to 1%.
In some cases, the notary appreciates their services, depending on the time spent in other fee of a few tenths of a percent of the purchase price.
Traditionally, the entire fee for services agency paid by the seller except as previously agreed by the parties, as well as the signing of the mandate by the buyer to search for real estate, provides personalized search service.
The tax effect of obtaining a residence permit
In general, according to Swiss law, a person who has received a residence permit (type B), and acquires the status of a tax resident of Switzerland - is one of the tax consequences. According to Swiss tax law income and wealth around the world are taxed in Switzerland and shall be declared. All taxes are levied at the federal, cantonal and communal levels, tax rates are progressive and vary in each community. The lower limit of the maximum income tax rate is kept at about 20% and the upper limit - at around 42%.
In addition to the worldwide income and taxes are subject to the notional value of the Swiss real estate lease - it is regarded as income in Switzerland. On the other hand, are deducted from the taxable income the cost of maintaining and maintenance of real estate and interest payments on mortgage loans.
Movable assets around the world, and real estate in Switzerland are subject to the cantonal and communal tax on wealth. Wealth tax is charged based on the amount of net assets, respectively, mortgages and other loans are deducted from the tax value of the assets. Clean Assets subject to a progressive tax rate, which can reach its maximum level of 0.1% to 1%, depending on the cantonal and communal tax rates.
With regard to non-Swiss citizens, and not carrying out in Switzerland paid employment, many cantons expect tax base, based on the rental value of the Swiss property (usually it is equal to seven times the size of the annual rent) and costs of accommodation, without taking into account the worldwide income client. Moreover, to provide a one-time tax the tax authorities require that the minimum tax burden is at least CHF 120 000 - in cases where the tax value of real estate is relatively small. The so-called one-time tax (Pauschalbesteuerung, forfait fiscal, tassazione globale) contested at the federal and cantonal level, and can be canceled in the coming years after a federal referendum in 2015.
The order of succession for the residents of Switzerland
If housing is considered in Switzerland, the Swiss international tax and private law as a principal residence, the order of succession established by the Swiss rules and tax laws. In accordance with Swiss law of succession to the relatives of coercive rules of succession. Swiss private international law provides for the possibility for foreigners to give up this option in cases where a will falls under a different governing law. Taxes on inheritance and gift tax is currently levied only at the cantonal and communal level. In most cantons, taxes are not levied on the spouses and direct heirs descending. Tax laws in some cantons did not provide the gift tax and / or inheritance, in other cantons impose taxes on inheritance and gift tax at a rate of about 40% for persons who are not related by family ties. In 2014 or 2015 it will be held a referendum in which the Swiss people will be able to vote for the abolition of the cantonal inheritance taxes to the federal tax rate of 20% on the legacy of more than 2 million CHF.