Tax situation in Valais

General elements

Once you own your home, your personal taxation changes; you can deduct debt interest, as well as various expenses related to your property, but you must declare its rental value. This corresponds to an estimate of what your property could theoretically earn if you decided to rent it out annually.

Your property will also be declared for wealth tax, while you may deduct the value of your debt.

Moreover, for foreign nationals, it is possible to negotiate lump-sum taxation. This type of taxation is only possible under certain conditions, and the value of your real estate serves as the basis for calculating this tax.

Various municipal taxes (e.g., road, tourist, and snow removal taxes), as well as a property tax, must be considered depending on the circumstances.

Finally, in the event of the purchase and resale of a property, a tax on real estate gains is levied. It is based on the difference between the purchase price and the sale price.

Notary fees

Notary fees are approximately 3% of the purchase price. This sum also includes additional costs, such as transfer fees or various land registry inscriptions.

Real estate financing

Here are some key concepts to consider regarding the financing of your property:

Equity

For the purchase of a secondary residence and depending on the chosen bank, equity must represent at least 30% of the property's value. This is the amount you contribute personally (in cash or in kind, e.g., through your land) when taking out a mortgage. In the case of a primary residence purchase, equity must represent at least 20%.

Mortgage

A bank loan involves a mortgage on the property you wish to acquire. This means your property 'belongs' to the bank that grants you a loan until it is repaid.

Amortization

Amortization corresponds to the amounts you pay annually or according to the schedule agreed upon with your bank to repay the loan for your property.

2nd and 3rd pension pillars

These two pension pillars, professional and private respectively, can be useful aids, particularly for reaching the required 30% equity (secondary residence) or 20% equity (primary residence) needed to acquire a property or to obtain a higher mortgage. Your pension fund can provide you with all the necessary information and available options.