Country guide

Total taxes in Switzerland are minimal in relation to purchase price, varying from 0.8 per cent to 1.3 per cent of the purchase price per annum depending on how the property is financed.

INCOME TAX Whether the property is rented or not, owners are liable to pay income tax on the actual rental income generated or on the “potential” rental income of the property which is reviewed by the local tax authority. The taxable amount is circa 60 per cent depending on the canton and commune. The taxable amount is also subject to further deductions for maintenance fees and any type of debt taken for the purchase.

WEALTH TAX The taxable amount is based on the value entered in the land register, known as the fiscal value. The fiscal value is approximately 60 per cent of the purchase price and deductions.

PROPERTY TAX This is calculated at 0.001 per cent of the taxable value of the property.

TAX ADVANTAGES FOR RESIDENTS Non-Swiss residents applying for a B permit (see below) may choose between the ordinary taxation scheme and the “lump sum” taxation scheme, which is a form of taxation by estimation. If the tax is determined on the basis of the expenditure there is no taxation of wealth at all. Foreigners who want to apply for this taxation scheme must be Swiss residents with a B or C permit, be retired and not have worked in Switzerland for the past 10 years.

Residency Permits

THE B PERMIT This is an annual residence permit. It gives the holder the right to live in Switzerland for 180 days or more per year and extends this right to the permit holder’s spouse and children under the age of 18.  The B permit is renewable annually.

THE ‘CE’ B PERMIT This is a B permit for people with an EU-15 passport. The ‘CE’ B permit is an extended version of the B permit, providing more rights. It is valid for  five years and gives the holder many rights not enjoyed by B permit holders, such as being able to bring a spouse and financially dependent descendants and ascendants, buying Swiss real estate without restriction, moving within Switzerland without restriction and becoming self-employed.

THE C PERMIT This is a permanent residence permit valid for as long as the holder remains in Switzerland. It has almost no restrictions and enables the holder to do many things not possible with B permits. Depending on country of citizenship, the potential exists to obtain a C permit after five or 10 years of residence with a B permit.

EU CITIZENS EU citizens holding a B permit and all non-Swiss holding a C permit have the same rights as Swiss citizens for the purpose of property. Non-EU citizens may purchase one property with the B permit but may also buy as a Swiss resident or an EU citizen who is resident once they have obtained the C permit.