Jurisdiction
In the Canton of Zurich, real estate gains tax is levied by the municipalities.
Tax rate
The tax rate in Zurich is progressive, i.e. the higher the taxable profit, the higher the percentage burden. The tax rate is 10 % for profits of CHF 5,000 or more and 40 % on profits exceeding CHF 100,000.
Holding period
From the full 5th year of ownership there is a tax reduction of 5 % and for each additional year 3 %. This applies up to 20 years, where a maximum of 50% tax reduction can be claimed.
For a short period of ownership of less than two years, a surcharge of 25% must be paid, and for less than one year, 50%.
Taxation mode - Monistic or dualistic system
In the canton of Zurich, the real estate gains tax is a single tax that is not part of the income tax. It must therefore be paid when the property is disposed of (monist system). All types of real estate gains are subject to this tax, whether they are gains from the sale of privately owned property or capital gains on commercial real estate.
Minimum amount
Gains of less than CHF 5,000 are tax-exempt, although in the canton of Zurich it is probably very rare for real estate to be sold with such a small profit.
Basics and useful links
The relevant legal texts can be found here: §§ 216-226 StG
By entering the postcode in which the property is located, you can go to the relevant municipal tax office.
All the indications in this article are provided for information purposes only. We invite you to contact the competent authorities or an advisor for a personalised recommendation.
General information on the Swiss property gains tax can be found here.
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