Everything you need to know about property gains tax in Grisons

Capital gains tax in the canton of Graubünden: How it works

Capital gains tax is generally payable by the seller when a property is sold at a profit. The separate tax return must be submitted within 90 days of it being sent out.

In the canton of Graubünden, capital gains of less than 4,200 Swiss francs are tax-free. A progressive tax rate applies to higher gains: the higher the taxable gain, the higher the tax rate. In addition, surcharges or reductions may apply depending on the length of ownership.

Graubünden operates a dual system, meaning that only gains from the sale of property held as part of the private assets of natural persons are subject to capital gains tax.

Capital gains realised by legal entities from the sale of property forming part of their business assets, as well as gains from commercial property trading, are, however, subject to ordinary income or profits tax.

Tip: Further information, contact details and tax return forms can be found on the official website of the Canton of Graubünden.

How is property gains tax calculated in Graubünden?

The tax is based on the taxable property gain. This corresponds to the proceeds of sale less the costs of acquisition.

Proceeds of sale
– Purchase price
– Value-enhancing investments
– Deductible expenses

= Taxable property gain

A distinctive feature in the canton of Graubünden is that inflation in the acquisition costs is taken into account. If the national consumer price index has changed by more than ten per cent since the last tax-triggering sale of the property, the acquisition costs are adjusted by half the extent of that change.

Furthermore: Losses incurred over the last ten years from the sale of private property within the canton may be deducted from taxable gains.

The following deductions are permitted for the purposes of calculating property gains tax in the canton of Graubünden

Purchase price:
The notarised original purchase price, including all acquisition costs, such as notary fees or land registry fees.

Value-enhancing investments:
Investments in permanent structures, renovations, infrastructure development, alterations and extensions.

Landowner contributions:
Perimeter contributions, value-added levies and similar public charges.

Agency costs:
Standard estate agent’s commissions and ancillary costs incurred in the sale of the property.

Losses:
Losses incurred from other property sales in the canton of Graubünden within the last ten years.

Important: Maintenance costs or expenses incurred purely to preserve the property’s value are not deductible.

How much is the capital gains tax in Graubünden?

Capital gains of up to 4'200 CHF are tax-free in the canton of Graubünden. Above this amount, the tax burden increases in line with the size of the gain.

The tax rate is 5 per cent on the first 9'100 francs and increases by 1 per cent for every further tranche of 9'100 francs of capital gain. This continues up to the maximum rate of 25 per cent for the tranche of capital gains between 172'900 francs and 191'000 francs.

From a profit of 191'000 Swiss francs onwards, the maximum tax rate of 15 per cent applies to the entire capital gain.

Surcharges and reductions on property gains tax

In Graubünden, a surcharge applies if the property has been held for less than 2 years. Furthermore, long-term ownership is rewarded: if you have owned the property for 10 years or more, you receive a discount of 1.5 per cent per year, up to a maximum of 51 per cent.

Example calculation of property gains tax in the canton of Graubünden

Calculation of property gains tax following the sale of a property after 12 years and an increase in value of 200'000 Swiss francs in the canton of Graubünden:

Sale price: CHF 1'000,000
Purchase price: CHF 800'000
Deductible investments: CHF 50'000
Other deductions, e.g. estate agent’s fees: CHF 5'000

= Taxable gain: CHF 145,000

Basic rate for property gains tax: CHF 34'270
Holding period: 12 years (= 3% reduction)

→ Effective capital gains tax in the canton of Graubünden: CHF 33'242

By way of comparison:

Same property, but held for only 9 months:
Basic rate: CHF 34,270
Surcharge for short holding period = 32%

→ Effective tax amount: CHF 45'236

In which cases is property gains tax deferred?

In certain cases, property gains tax may be deferred in the canton of Graubünden. This applies, amongst other things, to:

• An inheritance, an advance on an inheritance or a gift

• Transfers of property between spouses, for example as part of a division of matrimonial property.

• The replacement purchase of an owner-occupied residential property, provided that the proceeds from the sale are invested within two years in a new property in Switzerland that is also owner-occupied.

The tax is not waived in such cases, but becomes payable only upon a subsequent taxable sale.

Important: The tax deferral for a replacement purchase applies only to owner-occupied properties. Holiday homes, second homes and investment properties are excluded from this.