Happy New Year all. I'm liable for tax in Switzerland (and the UK, but that's not the issue here). The tax office wants to know the value of all my assets globally so it can set the appropriate tax rate. The value of Swiss real estate for tax purposes is accepted to be the reinstatement cost of the building plus the value of the land it stands on, which is substantially lower than the market value. Establishing the reinstatement cost of my home in the UK is easy enough (insured rebuild value), but there appears to be no way of establishing the value of the land on which my home stands. I am told the land value is simply the difference between the reinstatement cost of the building and the market value, which leaves me having to give the tax office the market value - way higher than an equivalent piece of real estate in Switzerland. Is there any way I can submit a fair/plausible value without having to go as high as the market value - which I wouldn't have to do in Switzerland? This must affect a fair number of Brits in CH...
The official valuation (German: amtliche Wert) is always clear for real estate in Switzerland. Every property is assessed.
If you rent the house out then the value is derived from the rental amount and in my case this was significantly less than the market value as it was rented at 'mates rates' and close to insurance rebuild value. I'd suggest putting a low value. Some don't even declare their UK assets at all. It could be that potentially everything 'comes out in the wash' in the end.
BTW if you have a UK limited company this is also a declarable asset if you're a share-holder.
Don't confuse Mietwert (rental value) with Steuerwert (taxable value). I need a plausible Steuerwert - and it has to be backed by some kind of Bescheinigung (letter, etc.). It's too late not to declare it...
Yes, and it's an equivalent "Amtliche Wert" that I need for the UK, sadly.
A Basel Treuhand called Aurenum notes (translated):
"Depending on the canton of residence, foreign real estate is valued very differently. Often it is sufficient to provide a foreign official value, if one is available. However, certain cantons require a copy of the purchase contract and derive the tax value from the purchase price."
As a next step, it would be helpful if the OP indicated in which canton s/he was filing a tax return.
What I mean is Mietwert defines the Steuerwert or vice-versa for Eigenmietwert.
Get a probate valuation or a 'we buy any house' valuation if you want something in writing. Or give the purchase price.