Thriving real estate market in Switzerland

In the jungle of financial and tax transactions, it is often helpful to have an advisor at your side. Be it a real estate transaction, an inheritance or the sale of a company – a layperson often fails to recognise all the subtleties involved in these transactions or disregards important aspects. Be aware that oral contracts without written evidence can generally be problematic. Almost all economic decisions made by private individuals have tax consequences.

In fact, for transactions where the impact is uncertain, an adviser will recommend that you seek an advance tax ruling or “ruling”, even for individuals. The advance tax ruling protects you from unpleasant surprises. It allows you to cover yourself and can be presented to the tax authorities to show confirmation of the procedure by the tax authorities in case of questions.

An advance tax ruling is an official written notice from a tax authority that provides a taxpayer with advance information on the tax treatment of certain facts. The purpose of a tax ruling is to provide the taxpayer with legal certainty and clarity about the tax consequences of planned or already executed transactions. As a rule, the requested facts must be described completely and precisely and the applicant must provide all relevant information and documents.

There are different situations in which a tax ruling can be requested

In complex tax matters, there is often uncertainty as to how the tax authority would assess and tax these facts. – e.g. in connection with:

• restructuring measures
• start-ups
• international business or special tax arrangements

An advance tax ruling provides binding information from the tax authority that is binding on the taxpayer. This means that the tax authority cannot later deviate from this information unless there are new facts or the legal situation has changed.

Advance tax rulings enable taxpayers to identify and plan for their tax obligations at an early stage. This planning can potentially avoid or minimise tax disadvantages.

However, an advance tax ruling should not be applied for lightly. It is advisable to seek professional tax advice to ensure that the application is made correctly and that the facts claimed are properly and fully set out.

We are at your disposal for all questions concerning real estate and related matters, whether it is an inheritance involving a property, a valuation for tax purposes or in the event of a divorce. Do not hesitate to contact us.

Contact form ›