Sale of real estate abroad, capital gains tax in Switzerland?

Taxes
1

Hi,

I own real estate (a flat) abroad. The property is declated in the yearly tax report (Steuererklärung). I’m considering selling it. In case of a sale, I would make a profit (purchase price was much lower as the sale price would be).

Is the profit from this sale taxed in Switzerland with the property gains tax (Grundstückgewinnsteuer) or income tax?

Unfortunatelly I can’t find much information on the official sites of Swiss tax authorities.

I was able to find a statement on a web site of one of the tax consulting companies saying that the profit from sale of real estate abroad is not taxable in Switzerland (Taxation of Properties Abroad - Taxolution Advisory LLC Taxolution Advisory LLC):

Capital gains from sale of foreign properties are not taxable in Switzerland but should be declared so that the Swiss tax authority can comprehend the evolution of your net wealth between each tax period.

Can anyone confirm me that this is indeed the case? Maybe even point me to the actual tax law that states this?

Thanks for all the answers!

S.

2

Art. 16, DBG[1]

Die Kapitalgewinne aus der Veräusserung von Privatvermögen sind steuerfrei.

Also, the Bund doesn’t levy a Grundstückgewinnsteuer, only cantons do[2]. For example canton Schwyz clearly states[3]:

Der Grundstückgewinnsteuer unterliegen Gewinne aus der Veräusserung von im
Kanton gelegenen Grundstücken des Privat- und Geschäftsvermögens oder von
Anteilen an solchen.

  1. Fedlex ↩︎

  2. Art. 2 Fedlex ↩︎

  3. Art. 104 Schwyzer Steuerbuch ↩︎

3

If there is a Double tax avoidance treaty , please have a look

In general in most cases, real estate is always taxed where it is located.

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4

Hi,

Thanks for your answer!

To whom it may concern: I asked this question directly at the Steueramt and I got the confirmation that the sale of property abroad is not taxed with the “Gründstücksteuer”:

Die Grundstückgewinnsteuer wird ausschliesslich durch die Gemeinde erhoben, in der das Grundstück liegt. Gewinne aus dem Verkauf ausländischer Immobilien sind daher in der Schweiz nicht steuerpflichtig. Wir empfehlen Ihnen, das Verkaufsdatum, sowie den erzielten Verkaufserlös informativ in der Steuererklärung zu vermerken. (Notiz auf Seite 4 der Steuererklärung oder mittels Einlagebrief)

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