Swiss second-home owners may face potential financial losses due to new tax regulations
Let's dive into the latest news about the 'rental value' tax in Switzerland, shall we? This tax is like a theoretical rent an owner would get if they rented out their property. As of now, anyone with real estate must pay tax on this theoretical amount, set by the tax authorities in each canton.
So, what's the buzz? Both the National Council and the Council of States agreed on abolishing the rental value for primary and secondary residences this week. However, for the tourist cantons where many second homes are located, this move could mean significant revenue losses. To make up for that, the National Council's Economic Affairs and Fees Committee is suggesting that a higher rental value tax continues to be imposed on second homes. This plan has the backing of the parliamentary majority.
This new system would kick in at the same time as the abolition of the rental value (more on that below). But here's the twist - the cantons would have the freedom to decide whether to levy this tax on second homes or not, and how much.
Now, what about those second homes in Switzerland? A second home is a second residence that is neither used by a resident of the commune nor used for work or education purposes. Second homes are usually used as holiday homes or rented to private tenants.
As for the new tax rule for second homes, don't expect it to happen right away. Both projects still need to pass the final vote, which would require a change in the Constitution, leading to a mandatory referendum that needs majority voter approval.
While the search results don't provide a specific timeline for the implementation post the final vote, they do mention ongoing developments in Switzerland's tax reforms, such as the implementation of the OECD Pillar 2 rules. However, for the second homes specifically, there's no detailed timeline available. If you want accurate and up-to-date information, consider checking official Swiss government announcements or consulting legal and financial advisors.
In this context, the discussed tax reform in Switzerland might impact investing in real-estate, particularly second homes, as the National Council's Economic Affairs and Fees Committee proposes a higher rental value tax to make up for the abolition of the rental value tax for primary and secondary residences. However, it's essential to note that this proposal still needs to pass the final vote, and there's no definitive timeline available for the implementation post the final vote. If one is considering investing in Swiss real-estate, keeping an eye on official Swiss government announcements or consulting legal and financial advisors would be advisable.
