Do I have to pay inheritance tax on an inherited property?

That depends on the canton and the degree of relationship. Spouses and direct descendants are exempt from inheritance tax in most cantons (including Zürich).

What happens to the mortgage in the event of an inheritance?

The mortgage passes to the heirs. The bank reassesses affordability. If the community of heirs cannot afford the mortgage, the property may have to be sold.

Sell or keep an inherited house?

That depends on your financial situation, the condition of the property and the market. Property gains tax is due on a sale – the shorter the holding period, the higher the tax rate.

How is the imputed rental value calculated for an inherited property?

The imputed rental value is calculated in the same way as for any owner-occupied property: as a rule, it amounts to 60–70% of the market rent and must be taxed as income.

Inherited Property: Taxes, Sale or Keep