Wealth tax and real estate founds

According to the fact sheet of the CS Real Estate Fund LivingPlus:

The fund takes direct ownership of the properties; unit holders are therefore not liable for Swiss income or wealth tax on the portion of the fund’s assets that is invested in real estate.

In view of the wealth tax (e.g. in Vaud canton…), obviously, one could be interested with such a found at the end of a given year (buy) and beginning of the following (sell). Has anybody studied that more deeply? Any major cons? I still haven’t done math checking whether it’s worth it (spread, charges).
The issue I am aware of is that by buying and selling assets in a time frame shorter than 6 months, I may be considered a professional trader. Has anybody had experience with such cases?

I am a “specialist” of RE funds. Don’t buy them only to have them on the 31st december. You can end up loosing more than your ~0.5%? wealth tax savings for example. This tax advantage is nice for “rich” people especially in Vaud but you need to look at the bigger picture. You want to earn the biggest amount of money without taking too much risk, you don’t want to run after tax savings with your eyes closed.

I personnaly take the tax savings into account in my RE evaluation spreadsheet. I sold some funds shares with tax advantages the other day because the price was too high.


How much is your overall and your marginal wealth tax rate?

The wealth tax tables can be found under the link. Keep in mind, that one needs to multiply this by canton and commune coefficients, so for Lausanne in Vaud (154.5% and 79% respectively), we get 2.335 coefficient.

Don’t try to evade taxes, it is not worth the risk.

What do you mean by evade? I would call it optimization.

Hardly an optomization from the risk point of view if you consider you are likely to pay nearly as much in spreads and stamp duty as the tax saved. Buy and own only as much as you want to have for the long term.

What do you think of UBS ETF (CH) SXI Real Estate (CHF) A-dis and UBS ETF (CH) SXI Real Estate Funds (CHF) A-dis ? Does it make sense to buy them as a swiss citizen or is it better to hold the funds directly ?


This would meet all the criteria. Plus you will have transaction costs.

Why would you want to pay more every year to have the same buildings ?

What’s more If you are rich, you want only funds with tax avantages. If you want less risk, you will mainly buy housing RE. If you want more return, you will buy mainly commercial.

Even If you have not a lot of money and you want only one position, you can buy a single well diversified fund.

The only thing is my mind is accessibility. It’s easier to buy an ETF than a fund.
These two funds are quite important so I was wondering why people would buy them.

All those funds are on Zurich’s market. When they are not available at IB, I ask them to add them and they always do. At CT, this is different because “funds are unavailable at the moment” eventhough I pointed at them that they already have some… I never have problems to buy them, there is clearly a market

I know, but I wanted to know how much wealth tax you pay.

I guess for most people here the biggest possible tax “savings” come earnings that come from rising prices of US stocks (only dividends are taxed)

In Zurich wealth tax is around 2k (not married, no children) if you own 1 Million. At the same time 1 Million should give you around 20k Dividend (taxed) and hopefully 30k in rising stock prices (tax free)
Lets say your RE gives you the same 50k income, you pay tax on the full amount. The wealth tax you save is < the income tax you lose.

On the other hand if you own 4 Million wealth tax becomes more important. This is why I asked.

Thinking of it, the CS RE fund price will also rise. My example was probably too simple. If I were you, I’d run an Excel file