Property gains tax in Ticino: everything property owners need to know
Are you planning to sell a property in Ticino? The Property gains tax can be a decisive factor. In this article, you will find out how tax is calculated, what special rules there are and how you can optimize your tax burden.
What is property gains tax?
Property gains tax is levied on the profit made on the sale of a plot of land or property. The profit is calculated as the difference between the Selling price and the original purchase priceless certain costs such as:
- Value-enhancing investments (e.g. renovations or conversions)
- Incidental purchase costs (e.g. notary costs, fees)
Who has to pay the tax?
In principle, the Seller of the property taxable. The tax is levied by the cantonal authorities, whereby the regulations and levels of tax vary from canton to canton.
How is the tax calculated?
The Amount of property gains tax depends on several factors:
- Profit amount: The higher the profit made, the higher the tax burden.
- Duration of ownership: A longer period of ownership is rewarded with tax reductions. For example, the tax rate in Ticino is reduced to a maximum of 4 % if the property is held for more than 30 years.
- Deductible costs: Deductible costs include:
- Expenses for renovations or conversions
- Notary fees
- Brokerage fees and other sales costs
Special regulations in Ticino and Switzerland
- Primary residence: If the property was used as a main residence, additional tax relief can be claimed.
- Reinvestments: If the profit is reinvested in a new property that also serves as the main residence, taxation can be deferred.
Tips for optimizing the tax burden
- Documentation: Keep all receipts for investments, ancillary purchase costs and maintenance work in a safe place. These can significantly reduce your tax burden.
- Advice from experts: Consult a tax expert to benefit from specific reliefs or exemptions.
- Timing: Consider whether it might make sense to hold the property for a longer period in order to benefit from lower tax rates.
Frequently asked questions about property gains tax in Ticino
- How high are the tax rates in Ticino? The tax rates are staggered and fall to a maximum of 4 % for a longer holding period if the property has been held for more than 30 years.
- Which costs are deductible? Deductible are investments that increase the value of the property, as well as purchase and sales costs such as notary and estate agent fees.
Do you have any further questions about property gains tax in Ticino or do you need help selling your property? Contact us: +41 764436612 or info@immobykathleen.ch for an individual consultation. Together we will find the best solution for your situation.
