Property Gains Tax in Zurich
While helping a relative prepare for a property sale in the canton of Zurich, I noticed that there wasn’t a free property gains tax calculator available online. After looking at the calculation, it seemed straightforward enough, so I made this calculator as a weekend afternoon project: pgt.tobler.app
Tax Rule
In the canton of Zurich, a property gains tax (Grundstückgewinnsteuer) is levied on the sale of real estate. Interestingly, the tax is collected entirely by the municipality, with no share going to the canton (Zug is the only other canton with a similar rule). A caveat for the calculator and this article is that I only looked at the rules in the canton of Zurich.
Rates
A profit CHF 5’000 and below is exempt from the property gains tax. For profits above that threshold, the following progressive tax rate applies:
| Amount (CHF) | Rate |
| 0 - 4’000 | 10% |
| 4’000 - 10’000 | 15% |
| 10’000- 18’000 | 20% |
| 18’000 - 30’000 | 25% |
| 30’000 - 50’000 | 30% |
| 50’000 - 100’000 | 35% |
| > 100’000 | 40% |
Surcharges and Discounts
The length of time the property was held significantly affects the final tax:
- Sales within the first two years are subject to substantial surcharges intended to discourage speculation:
| Number of Years | Surcharge |
| 1 | +50% |
| 2 | +25% |
- Ownership of 5 years or more benefits from increasing discounts:
| Number of Years | Discount |
| 5 | -5% |
| 6 | -8% |
| 7 | -11% |
| 8 | -14% |
| 9 | -17% |
| 10 | -20% |
| 11 | -23% |
| 12 | -26% |
| 13 | -29% |
| 14 | -32% |
| 15 | -35% |
| 16 | -38% |
| 17 | -41% |
| 18 | -44% |
| 19 | -47% |
| >20 | -50% |
Additionally, the following costs can be deducted from the profit before calculating the tax:
Value-adding investments (e.g. renovations that increase market value)
Costs related to purchase and sale (e.g. notary fees, agent commissions, land registry charges)
Deferral
A common reason for someone selling a property is to move to a bigger house or apartment. Therefore, it is important to note that the tax can be deferred under certain conditions:
The proceeds are reinvested within 2 years
Both properties must be the primary residence located in Switzerland
The purchase price of the new property must be higher than the sale proceeds
This deferral mechanism allows you to retain and grow the equity in your property over time. Furthermore, the ownership period accumulates across properties, meaning you may qualify for a greater discount on the final taxable gain when the replacement property is eventually sold.