Saving Tax When Buying Property: 8 Legal Strategies for Switzerland

Property ownership offers numerous opportunities for tax optimisation in Switzerland. From deducting maintenance costs and cleverly staggering renovations to choosing the right canton — those who know these 8 strategies often save thousands of francs per year.

Strategy 1: Deduct maintenance costs optimally

Value-preserving investments are fully deductible from income tax. These include:

• Painting and wallpapering
• Plumbing and heating repairs
• Window and roof replacement (equivalent)
• Garden upkeep (not new landscaping)
• Building insurance premiums

Tip: Most cantons offer either a flat rate (10-20% of the imputed rental value) or the actual deduction. Check annually which option is more favourable.

Strategy 2: Stagger renovations over several years

A large renovation in a single year often yields less tax saving than spreading it over 2-3 tax years.

Reason: Tax progression. A CHF 100'000 deduction in one year is worth more at a high marginal tax rate than the same CHF 100'000 spread out — but only if the taxable income is already high. For middle incomes, staggering is more advantageous.

Example: Kitchen (CHF 40'000) in year 1, bathroom (CHF 35'000) in year 2, façade (CHF 80'000) in year 3. Total tax saving at a 35% marginal tax rate: CHF 54'250 instead of CHF 48'000 for a total deduction in a single year.

Strategy 3: Favour energy-efficient renovations

Investments in energy efficiency are doubly advantageous: tax-deductible AND eligible for subsidies.

• Heat pump instead of oil heating: tax deduction + subsidy (CHF 5'000-30'000 per canton)
• Solar panels: tax deduction + feed-in tariff
• Insulation: tax deduction + subsidy

→ Details: GEAK and Minergie: impact on value

Strategy 4: Deduct mortgage interest

Mortgage interest is fully deductible. At current interest rates (1.5-2.5% for fixed-rate mortgages) and a marginal tax rate of 30-40%, this works out as:

Example: CHF 1'000'000 mortgage × 2.0% interest = CHF 20'000 interest × 35% marginal tax rate = CHF 7'000 tax saving per year

→ Mortgage comparison: fixed-rate mortgage vs. SARON

Strategy 5: Don't over-amortise

Many homeowners pay off their mortgage as quickly as possible. From a tax perspective, this is often counterproductive:

• Less interest on debt = fewer deductions = higher tax burden
• Money tied up in the mortgage rather than invested
• Rule of thumb: amortise the 2nd mortgage (above 65% loan-to-value), keep the 1st mortgage

Strategy 6: Make use of cantonal differences

The tax burden varies considerably between cantons:

→ Calculate imputed rental value

Strategy 7: Reduce property gains tax through length of ownership

The longer you own a property, the lower the property gains tax when you sell. In most cantons there are length-of-ownership discounts of 5-50%.

→ Property gains tax: calculation and optimisation

→ Calculate property gains tax

Strategy 8: Minimise property transfer tax when buying

Some cantons levy no property transfer tax (e.g. Zurich, Zug), others up to 3.3%. For purchase prices from CHF 1M upwards, this is a substantial amount.

→ Property transfer tax by canton

→ Calculate property transfer costs

As of April 2026. This is not tax advice — consult a tax adviser for your personal situation.