All rents received from your tenants shall be subject to federal, cantonal and city taxes, at the same rate as income from salary with, however, the possibility of deducting the mortgage interest and the maintenance expenses for your property. You will also pay taxes on real estate gains generated by the sale of your property, with the rate of imposition decreasing during the years of ownership. Finally, you will pay tax on your real estate wealth, by considering that the value of the mortgage is subtracted from the tax value of the property, which in many cases generates negative wealth, thus no tax on wealth.
The rate of taxation varies by canton and by town. We analyse these rates when selecting our investment properties, and the significant impact that these rates can have on your return.
Our analyses also include the detail of all of the expenses necessary for acquisition of a property. The notarial fees and those for the cantonal land registry, for the purchase, creation or modification of a mortgage payment agreement may be very different from one canton to another.