Income tax on rent, worked example, in Switzerland
September 03, 2016
| Non-resident couple's joint monthly rental income2 | €1,500 | €6,000 | €12,000 | |
| Annual Rental Income | 18,000 | 72,000 | 144,000 | |
| Less Costs3 | (2,700) | (10,800) | (21,600) | |
| = Taxable Income | 15,300 | 61,200 | 122,400 | |
| Acquisition Costs | 224,248 | 1,379,721 | 2,990,574 | |
| Taxable Value for Real Property Tax | 224,248 | 224,248 | 2,990,574 | |
| Real Property Tax | 224 | 1,380 | 2,991 | |
| Taxable Value for Net Wealth Tax4 | 276,495 | 1,105,941 | 2,203,876 | |
| Net Wealth Tax (Geneva) | 1,658 | 9,566 | 20,633 | |
| Taxable Income for Cantonal/ Communal Taxes (Geneva) | 15,300 | 61,200 | 122,400 | |
| Income Tax (Geneva) | 5,126 | 20,500 | 40,854 | |
| Taxable Income for Direct Federal Tax5 | 15,076 | 59,816 | 118,961 | |
| Income Tax (Federal) | 1,734 | 6,880 | 13,681 | |
| Annual Income Tax Due | €8,741 | €38,326 | €78,158 | |
| Tax Due as % of Gross Income | 48.56% | 53.23% | 54.48% | |
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DISCLAIMER: The information contained above is marketing material only and is not written tax advice directed at the particular facts and circumstances of any person and should not be relied upon. We encourage you to discuss your particular situation with us or an independent tax advisor. This information was last updated on October 3, 2006.
Notes
1 Exchange rate used: €1 = CHF3.097.
2 The property is jointly owned by husband and wife.
3 Income-generating expenses are estimated to be around 15% of gross income.
4 The annual gross rental income is therefore capitalized with 6.51%. The capitalization rate is determined by the Geneva State Council annually.
5 The Real Property Tax can be deducted for the Direct Federal Tax. In these cases, the Real Property Tax was deducted from the respective net income.
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