What Is Real Estate Gains Tax?
The real estate gains tax is a tax levied on the profit made from selling a property, that is, the difference between the original purchase price (plus certain allowable costs) and the final selling price. This means that real estate transactions are subject to taxation – separate from regular income or corporate taxes.
In Valais, this tax applies only to real estate sales from private ownership, not business assets, due to the canton’s dualistic gains tax system.
When Is the Real Estate Gains Tax Collected?
The tax is triggered at the point of sale of a property. It is usually assessed and collected after the transaction is finalized and must be declared to the cantonal tax office. The notary handling the sale typically notifies the tax authority, and in many cases, a provisional amount is withheld from the sale proceeds to cover the estimated tax until the final calculation is completed.
In Valais, the seller is obligated to submit a tax declaration specifically for the real estate gains tax, which is evaluated separately from other taxes.
Who Collects the Tax?
In Valais, the real estate gains tax is levied by the cantonal tax authority. However, two-thirds of the revenue is transferred to the municipality where the property is located. If the property spans multiple municipalities, the tax is proportionally distributed based on the taxable profit earned in each municipality.
Who Has to Pay Real Estate Gains Tax?
The tax is owed by the seller of the property. There is a catch, however: The tax authority has a lien on the property if the seller does not pay the real estate gains tax – no matter the current owner of the property. For this reason, the real estate gains tax is typically secured during a sale.
Tax Rates in Valais
The real estate gains tax in Valais is structured progressively: the higher the gain, the higher the rate. Within each of the three taxable income brackets, the rate increases proportionally.
If you’ve owned the property for less than five years, you’ll pay a higher tax. If you’ve owned it for at least six years, the tax is reduced by 4% for each additional year of ownership.
Here’s how the rate changes based on how long you've owned the property:
|
Ownership Period |
Up to CHF 50,000 |
CHF 50,001 – 1,000,000 |
Over CHF 1,000,001 |
|
1st year |
19.20% |
28.80% |
38.40% |
|
2nd year |
18.00% |
27.00% |
36.00% |
|
3rd year |
15.60% |
23.40% |
31.20% |
|
4th year |
14.40% |
21.60% |
28.80% |
|
5th year |
13.20% |
19.80% |
26.40% |
|
6th year |
12.00% |
18.00% |
24.00% |
|
7th year |
11.52% |
17.28% |
23.04% |
|
8th year |
11.04% |
16.56% |
22.08% |
|
9th year |
10.56% |
15.84% |
21.12% |
|
10th year |
10.08% |
15.12% |
20.16% |
|
11th year |
9.60% |
14.40% |
19.20% |
|
12th year |
9.12% |
13.68% |
18.24% |
|
13th year |
8.64% |
12.96% |
17.28% |
|
14th year |
8.16% |
12.24% |
16.32% |
|
15th year |
7.68% |
11.52% |
15.36% |
|
16th year |
7.20% |
10.80% |
14.40% |
|
17th year |
6.72% |
10.08% |
13.44% |
|
18th year |
6.24% |
9.36% |
12.48% |
|
19th year |
5.76% |
8.64% |
11.52% |
|
20th year |
5.28% |
7.92% |
10.56% |
|
21st year |
4.80% |
7.20% |
9.60% |
|
22nd year |
4.32% |
6.48% |
8.64% |
|
23rd year |
3.84% |
5.76% |
7.68% |
|
24th year |
3.36% |
5.04% |
6.72% |
|
25th year |
2.88% |
4.32% |
5.76% |
|
More than 25 yrs |
1.00% |
2.00% |
3.00% |
Ownership Duration and How It Affects the Tax
As shown above, how long you've owned the property plays a key role. The longer the ownership period, the lower the tax rate—thanks to a declining scale that reduces the rate by 4% per year after year six.
If you sell a property held for five years or less, a surcharge is applied.
What Costs and Deductions Can Reduce the Real Estate Gains Tax in Valais?
When calculating the taxable gain, several deductions are allowed in Valais to reflect the actual profit more fairly:
- Acquisition costs, including notary and registration fees
- Capital improvements (e.g., renovations that increase value, not regular maintenance)
- Brokerage fees paid at the time of sale
- Selling costs, such as advertising or administrative expenses
- Costs for land development or building permits
It is important to keep all receipts and documentation related to these expenses, as they must be clearly demonstrated and submitted with the tax declaration.
Tax System: Dual vs. Monistic
Valais follows a dualistic taxation system. This means that the real estate gains tax applies only to private individuals selling personally owned property.
If the property is part of a company’s business assets, or sold by a self-employed real estate trader, the gain is taxed not through the real estate gains tax, but under standard income or corporate tax rules.
Tax-Free Threshold in Valais
If the calculated tax amount is less than CHF 100, no tax is levied.
Calculate your real estate gains tax in Valais
Calculate your potential real estate gains tax in Valais in a few simple steps using our online calculator.
