Capital-gains tax on selling: why holding period decides almost everything
When you sell a property, the canton taxes the gain. The biggest lever is how long you held it: sell too soon and you pay up to 70% more; hold long and up to 70% less. With a curve and a calculator — using Bern as the example.
Tax on a CHF 200,000 gain · city of Bern
Sold in the first year, the same gain costs about CHF 107,000 in tax; after 35 years, about CHF 15,000. Holding period is the biggest lever.
Who pays — and on what
Anyone who sells a property at a profit owes the canton the capital-gains tax (Grundstückgewinnsteuer). What is taxed is the gain, not the sale price: the difference between the proceeds and your investment costs.
Investment costs include the original purchase price, value-adding investments (an extension, say — but not ordinary maintenance), and the costs around buying and selling such as notary, land registry, broker and transfer tax. The more of these you can document, the lower the taxable gain.
The biggest lever: holding period
Almost every canton wants to curb short-term speculation and reward long holding. In the canton of Bern: holding under 5 years adds a surcharge (under 1 year +70%, then 50%, 35%, 20%, 10%). From the 5th year, the taxable gain falls by 2% per year — up to −70% after 35 years.
Tax by holding period
Example · gain CHF 200,000 · Stadt Bern
Work it out
Capital-gains-tax calculator
Capital-gains tax
CHF 51,755
25.9% of the gain · −16% holding-period reduction
Estimate for the canton of Bern (city of Bern: multiplier 3.025 canton + 1.54 commune), §146 StG tariff. Other cantons and communes differ considerably. Value-adding investments, broker and notary fees reduce the gain.
Deferring the tax: replacement purchase
If you sell your owner-occupied home and put the proceeds into a new owner-occupied home, the capital-gains tax is deferred — it only falls due when you later sell the replacement. In the canton of Bern the replacement must happen within 2 years, by the same person.
Lower the gain — and the tax
- Document value-adding investments: an extension, a new kitchen, an energy retrofit (but not ordinary maintenance).
- Deduct buying and selling costs: broker commission, advertising, notary, land registry, transfer tax.
- Early-repayment penalty to the bank when you dissolve the mortgage early.
- Keep receipts from the moment you buy — an ongoing investment list secures your deductions.
It differs from canton to canton
Unlike the transfer tax, there is no single number per canton: the tariff, holding-period rules and the system differ a lot. Most cantons (including Bern and Zurich) tax capital gains monistically via a special tax; others dualistically via income/profit tax. The figures here are for Bern (city of Bern) — always check your own canton’s rules.
Frequently asked questions
- Who pays the capital-gains tax?
- The seller, on the gain realised (proceeds minus investment costs). You do not pay it when buying.
- How is the gain calculated?
- Proceeds − investment costs. Investment costs are the purchase price, value-adding investments and the costs around buying and selling (notary, land registry, broker, transfer tax).
- How much does holding period cut the tax?
- In Bern the taxable gain falls 2% per year from the 5th year (max −70%). Under 5 years, a surcharge applies instead — up to +70% under 1 year.
- Can I defer the tax?
- Yes — with a replacement purchase (owner-occupied home, within 2 years in Bern), or via inheritance, gifts and matrimonial-property transfers.
- Do all cantons treat it the same?
- No. The tax is highly canton-specific (rates, deadlines, monistic vs dualistic). The figures here use Bern for illustration.