Optimizing Real Estate Capital Gains Tax

In the canton of Valais, optimizing real estate capital gains tax is a major concern for investors and property owners. It is crucial to understand the nuances of Valais tax legislation to maximize profits when selling real estate.

Firstly, it's important to note that the holding period of the property has a significant impact on the amount of tax: the longer the holding period, the lower the tax rate on real estate gains. This aims to encourage long-term investments in real estate. You will find below the scale concerning the real estate gains tax rate based on the holding period of the property.

Notary fees and fees for the establishment of a hypothecary deed paid at the time of acquiring the property are deductible from the selling price.

In addition, expenses incurred for construction, transformation, and lasting improvements that increase the value of the property are deductible from the selling price.

It is essential to keep all invoices and evidence of these works to justify these deductions.

On the other hand, repair, maintenance, and renovation costs of the property are not deductible from the selling price.

Optimizing real estate capital gains tax may involve strategic choices regarding the type and timing of investments, as well as ownership structure (individual or corporate purchase or sale).