Property gains in Geneva: understanding how your tax is calculated

The basics of calculating property gains in Geneva

Property gains tax (IBGI) is calculated on the difference between the net sale price and the purchase price, after deducting certain costs.
The rate applied decreases with the length of time the property has been held:

• 50% in the first year (less than 2 years)
• At least 2 years: the rate is 40%;
• At least 4 years: the rate is 30%;
• At least 6 years: the rate is 20%;
• At least 8 years: the rate is 15%;
• At least 10 years: the rate is 10%;
• At least 25 years: the rate is 2%.

There are, however, exceptions. If the property was acquired through a gift or an inheritance (death occurring on or after 1 January 2001), different rules apply. In the case of a gift, the acquisition value is the value of the property at the time the donor acquired it. For an inheritance, the acquisition value corresponds to the value of the property on the date of the person’s death.

Determining the net sale price

The net sale price is the amount received by the seller, after deduction of transaction-related costs such as:

• The agency commission (generally 3–5% at Millenium Properties)
• Notary fees
• Registration duties

Allowable deductions

Certain expenses may be deducted from the gain, including:

• Initial acquisition costs (transfer duties, notary fees)
• Value-adding investments (renovations, extensions)

Example calculation for a property in Geneva

You bought a property on 15 April 2014 for CHF 720’000 and you sell it on 10 September 2024 for CHF 980’000.
Let us assume that you paid a commission of CHF 29’400 on the sale and CHF 18’000 in registration duties on the purchase.

• Sale price for tax purposes: CHF 950’600 (980’000 – 29’400)
• Purchase price for tax purposes: CHF 738’000 (720’000 + 18’000)
• Property gain: CHF 212’600 (950’600 – 738’000)
• Tax rate: 15% for more than 8 years of ownership (see the scale above)
• Total tax: CHF 31’890

Tax relief available when selling a property

• Tax deferral on reinvestment In Geneva, if you sell your main residence and reinvest the proceeds in a new main residence in Switzerland within two years, you may obtain a full or partial exemption from property gains tax. However, this tax advantage is strictly defined and applies only to main residences.
• Tax reduction based on the period of ownership As indicated above, property gains tax decreases in proportion to the length of time the property has been held. By keeping your property for a long period (more than 25 years), you could be fully exempt from tax on the sale.

Millenium Properties’ expertise at your service

Calculating property gains in Geneva can be complex. Millenium Properties’ advisers have a thorough command of Geneva property taxation. With 15 years’ experience in the local market, we support you in optimising your tax position when you sell your property.
Please contact our experts for a personal consultation and advice tailored to your property project in Geneva.