How much Swiss rental income tax should I pay?

[godsdaughter97]

Sorry I’m not familiar with the Swiss tax system. I’m curious to know the amount of Swiss tax on rental income from properties located abroad (for example in France, Germany, Uk etc). Thanks

 

[bella96]

@godsdaughter97 The income from rental will be added to your Swiss salary to establish the tax bracket but then the % will be applied to your Swiss income only. In the country where the property is located, you may pay taxes for this income. My experience is with an apartment in Spain where I need to pay 24% of rent as taxes to Spain without deductions and then declare this income in Switzerland for the tax bracket.

If the apartment is not rented, in Switzerland you will still be added a theoretical rent to your Swiss income to establish the bracket (valeur locative) and then the bracket applied to your Swiss income.
In the country where the apartment is located there may be some tax for empty property.

 

[smta276603]

@bella96 Correct.

You can also deduct some maintenance expenses (and there is an automatic deduction of 10% of your rental income), but that has little effect (it also affects the tax bracket but is not subtracted to your taxed income).

In any case, it is done automatically in the tax forms.

 

[listenyoumust]

@bella96 Spain tax(C) for rental income: gross rental income (B)-costs(A) (overhead, amortisation,etc)

What has to be added to swiss tax declaration:
C, or B-A, or B-A-C?
I put the B-A, but B-A-C would be better.

 

[bella96]

@listenyoumust Hi, you can’t deduct anything as a Swiss resident from the rental income in the Spanish tax (INR impuesto de no residente). If we were EU residents were could deduct and also the rate would be lower 19% instead of 24%.

In Switzerland, if it is rented only, you can deduct the maintenance and the regular costs (gastos de comunidad).

Interests and mortgage you declare in the part of mortgage debt in your tax declaration but not in the part of real estate (it will help for fortune tax only. The mortgage is not deductible from the rental income).

Also, the tax paid in Spain for this rental income you can’t deduct in your Swiss declaration.

Edit: added last paragraph

 

[p4z]

@godsdaughter97 It’s a bit generic. It depends on some factors

• Your nationality and the location of the house. For example if you own it in Italy you have annual Property tax in Italy.
• The Canton where you live and your current tax bracket

 

[younghen]

@godsdaughter97 None

 

[sangeria8]

@godsdaughter97 Is it worth it owning real estate abroad as an investment given the tax situation (tax abroad and higher tax rate applied here in CH)?