How is property gains tax calculated?

The tax is levied on the gain: sale price minus investment costs (purchase price + value-enhancing investments + incidental costs). The shorter the holding period, the higher the tax rate.

How much is property gains tax in the Canton of Zürich?

In the Canton of Zürich, the tax rate decreases as the holding period increases: for less than 2 years it is up to 40%, and after 20 years around 10%. From 25 years, a Besitzesdauerabzug applies.

Which costs can I deduct from the property gain?

Deductible are the original purchase price, property transfer tax, notary costs, estate agent fees on sale and value-enhancing investments – but not maintenance costs.

Can I defer property gains tax?

Yes, in the case of replacement property purchase (buying a new owner-occupied property within an appropriate period), the tax is deferred. There is also no immediate tax charge in the event of inheritance and gifts.

Property Gains Tax: Rates & Saving Tips