Global

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  • Service: Tax, International Corporate Tax, International Executive Services, Global Compliance Management Services
  • Type: Regulatory update
  • Date: 3/22/2013

Switzerland - Tax considerations with respect to real estate transactions 

March 22: The Swiss real estate market in recent years has proved to be a fairly safe investment place with real estate values being stable or even increasing substantially. This has caught the attention of many Swiss and foreign investors.

Whereas the purchase by foreign investors of apartment buildings and dwellings is still subject to restrictive authorization by the appropriate cantonal and federal authority, investments in commercial real estate business generally do not need to be officially authorized. For example, last year, there was the largest-ever sale of a single property in Switzerland to a foreign investor (the transaction value was about Sfr1 billion (U.S. $1.1 billion)).


A decision between a direct or an indirect acquisition structure is the basis for a tax-efficient investment in Swiss real estate.


Concerning future disposals of real estate investments, a foreign investor (the investment vehicle owning the Swiss property) is subject to tax in the place where the property is located. Switzerland consists of 26 different cantons, each with its own cantonal and communal tax laws.


Two main taxation systems can be categorized concerning the taxation of real estate capital gains—the monistic and the dualistic tax systems. In both systems, real estate capital gains resulting from an asset deal are subject to tax.


Read a 2013 report prepared by the KPMG member firm in Switzerland: Real estate: How a purchase of Swiss real estate can work tax efficiently




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The information contained in herein is of a general nature and is not intended to address the circumstances of any particular individual or entity. Although we endeavor to provide accurate and timely information, there can be no guarantee that such information is accurate as of the date it is received or that it will continue to be accurate in the future. No one should act on such information without appropriate professional advice after a thorough examination of the particular situation.


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1801 K Street NW
Washington, DC 20006.

 

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