Owning real estate in Switzerland while living abroad involves specific tax obligations under Swiss law. Whether the property is rented or not, non-residents are subject to taxation in Switzerland based on the property’s location.
You must declare the market value of the property (for wealth tax) and any rental income (subject to income tax) in the canton where the property is located. Usually, there is no direct federal tax, but each canton applies its own withholding tax or non-resident income tax scale.
Switzerland has signed many double tax treaties to help avoid being taxed twice on the same income. These agreements determine whether the income is taxed in Switzerland or in your country of residence, and how it should be reported. Coordination between Swiss and foreign tax obligations is essential.
The property must be valued in Swiss francs, and some deductions may apply, depending on the canton, including:
- Mortgage interest,
- Maintenance and renovation costs,
- Local property taxes,
- Property management fees (if applicable).
If the property is rented, Swiss-sourced rental income is always taxed in Switzerland, even if it is also reported in your country of residence. In certain cases, non-residents must appoint a tax representative in Switzerland, especially if the property is owned via a foreign company.
For more complex ownership setups, it can be beneficial to hold the property via an optimized structure, such as a Swiss real estate company, a family holding, or a trust, depending on your legal and tax environment. This approach may help reduce estate tax exposure, improve legal protection, and simplify succession planning.
Some elements to consider
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