Buying a chalet/apatment in Swiss alps

tom thumb

i'm thinking of buying a /chalet/apartment in the swiss alps does anyone have any advice on the tax's and charges one has to pay. What are the tax penalties when buying or selling.

Culchie

I could be wrong, but I think you have to be a swiss resident before being allowed to buy freehold property there.

I worked there in the early 90's and think that was the rule (I was too young to have a keen interest in property per se then)

ck1

EU citizens who are resident outside Switzerland can buy one property for their own use. Companies are not allowed to purchase properties there. Special permission is needed to buy land or properties larger than 3,000 sq m (32,292 sq ft). These permissions are all subject to the "Lex Friedrich" which outlines the permits needed by foreigners to buy property of any kind in Switzerland. Lex Friedrich - Federal law regulating the acquisition of land by individuals residing abroad. The law determines to which extent individuals with residence abroad may acquire land in Switzerland.

With regards to tax, you are liable to tax in this country (depending on your residency status of course) CGT @ 20% on capital gains made on sale proceeds and as I believe you are not allowed rent it, you have no issue on income tax. I have no idea whether you are liable to any gains tax, etc over there. There may be a Double Taxation Treaty signed with them, you should look this up, good luck reading it, they are quite lengthy.

Victor

ck1 wrote:

There may be a Double Taxation Treaty signed with them, you should look this up, good luck reading it, they are quite lengthy.

I think there is, Switzerland is effectively an EU member on a bi-lateral (as opposed to multi-lateral) treaty basis.

ck1

Thanks Victor, thats interesting to know.