Swiss wealth tax on properties abroad

If I buy a holiday house in another country, will I have to pay wealth tax on that property in Switzerland? What if I already pay tax on the property in the country it is in?

If you live in Switzerland, all of your personal wealth - including property - is subject to Swiss wealth tax. This applies to assets held outside of Switzerland just as it does to those held in the country.

However, Switzerland has tax treaties with many countries which help you avoid being taxed twice for the same wealth or income. As long as the property is located in a country with which Switzerland has a tax agreement, you will usually only pay tax on a property in the country where the property is located.

Still, the wealth and income value of the property must be declared to Swiss tax authorities because it playes a role in determining which tax brackets you fall into.

If you own a property outside of Switzerland, you need to declare both the property's taxable value (typically between 70% and 100% of its market value) for your wealth tax calculation. You also need to declare the hypothetical rent you would pay to rent the property (typically 60% to 70% of the market rate) for your income tax calculation.

If you aren't sure what figures apply at your municipal tax office, check with the office or ask a tax consultant.

In the event that you rent the property out (via home-sharing portals, for example), you must include all rental income generated by these rentals in your income declaration.

Money which you spend on renovating or maintaining the property can be deducted from your taxable income within the limits provided for by your municipal tax office, just as it would for a Swiss property. You can also deduct interest on your mortgage if you have one.