Property capital gains tax: What sellers absolutely need to know

The VBuying a property can be a lucrative step but also bring challenges. One aspect that is often overlooked is the capital gains tax.

This blog post highlights the five most important pointsthat you should consider to avoid unpleasant surprises and maximize your profit.

1. Understanding real estate capital gains tax

The property capital gains tax is levied on the profit you make when selling a property. The profit is calculated from the selling price minus the original purchase price as well as eligible costs, such as value-adding investments.

2. Consideration of the holding period

The longer you own your property, the lower the tax rate can be. There is a staggered system that favors long-term ownership. For example, the tax rate in Zurich is falling after ten years of ownership. It is therefore worth checking the holding period of your property carefully before selling it.

3. Eligible investments

Renovation and maintenance costs can reduce the taxable profit. Therefore, keep all Evidence of value-adding investments This includes, for example, costs for new windows, a new heating system or extensive renovation. Regular maintenance work, such as painting, is usually not included.

4. Postponement of real estate capital gains tax

In certain cases it is possible to defer payment of capital gains tax. This is particularly the case if the proceeds of the sale are used to purchase a new property, which is also used by the companySuch a tax deferral can preserve your liquidity and offer you more financial flexibility.

5. Preliminary clarification and planning

An early preliminary clarification with a real estate expert can prevent many problems. Get comprehensive advice before you initiate the sale. An estimate of the possible tax burden and a strategic planning of the time of sale can help you to make the best financial decisions.

The sale of a property brings with it not only a possible profit but also tax obligations. careful planning you can ensurethat you are well prepared and maximize your sales revenue.

Contact us - as experienced real estate agents in the cantons of Zurich and Aargau we support you every step of the way.