Apparently the -tax- could be deferred if buying another property, as I understood it.
Does anyone know if this -tax- that was paid can be used against a property purchase in another Canton?
Recently sold our apartment and split the proceeds with my now -ex- wife & at the time the lawyer asked if either of us were being another property, no to that at that moment in time.
I know of one couple that sold in Zurich Canton and bought in Canton Schwyz and were able to transfer the capital gains tax or 'grundstückgewinnsteuer' as it's known in the German part to their new property. Typically, I'm led to believe you have to buy a more expensive property to take advantage of this but don't quote me on that.
As long as both are your primary residences the capital’s gains taxes can be deferred.
Which would make sense. If you buy a less expensive property you've realised part of the capital gain.
IIRC you have only a limited time, like 2 years. You might have forfeited on that option already when declaring that there won't be a replacement purchase.
It's not the tax amount that is written forward but the capital gain itself.
To make very simple example:
i) buy house #1 for 500k
ii) sell for 600k, buy #2 for 600k within the time limit
iii) sell #2 for 750k and get taxed
At this point you get taxed on 250k gain, at the tax rate of iii) canton, even in cases where i) is in a different canton. Of course that can be to your advantage or disadvantage for the first 100k gained.
In reality the calculation will be much more complex. Sell/buy prices will differ, there will be deductions (e.g. renovations, do keep the documents), and AFAIA the lookback period is limited to something like 20 years (so if step ii) happened 25 years ago the capital gains from the first house is "forgotten").
Give your tax office a call, most are friendly and helpful. You're not the first, they may have a brochure prepared with the core points.
Thanks for all the replies, I did tell the notary that I intended to buy another property but not immediately but within the next 12 months.
I am going to take the advice and go to the local tax office and ask when the time gets nearer.
Not sure how much it will benefit me but worth a try, will update this thread when I know more.
Hopefully that will help others.