Property Tax in the Valais Canton: Definition
In Switzerland, cantons are allowed to levy a property tax. The cantons decide the specifics of this tax as it is not a federal tax.
In Valais like in Switzerland, property tax is a tax levied every year on real estate properties. Whether you are a registered owner or usufructuary, this tax must be paid at the beginning of each year.
An Optional Tax in Switzerland
In Switzerland, property tax is a communal and/or cantonal and not federal. It is an optional tax. Some cantons, such as Zurich, Schwyz, Glarus, Zug, Solothurn, Basel-Landschaft and Aargau, do not levy it.
However, in Valais, it is a communal tax and cantonal.
In Switzerland, property tax is a "real" taxThis means that the owner's financial situation is not taken into account when calculating this tax. The tax relates solely to the building.
What Qualifies as a Building?
But beware of confusion. To fully understand how property tax works in the Valais, it is important to define what is meant by "buildings".
Although we often think that this word refers only to apartment buildings, this is not always the case.
According toart. 665 CC, buildings are defined as:
- Property, i.e. everything within a defined parcel of land
- Distinct and permanent rights, i.e. the right to use a plot of land for a long period in order to build something on it, without owning the land itself.
- Mines
- Co-ownership shares in a building
Who Has to Pay this Tax?
In Valais, whether you are an individual or a company, as long as you are the owner of a property, you will have to pay this tax at both cantonal and municipal level.
Dans le cas d’un usufruit dans le canton du Valais, le propriétaire est toujours responsable pour le paiement de l’impôt foncier, sauf s’il inscrit l’usufruit au Land register. Once the registration has been made, it is up to the usufructuary to pay the tax.
Owners of Secondary Residences
Even if you do not live in the building in question, you will still be subject to this tax. Because it is a real tax. It is intended to affect the residence in question, not the owner. His principal residence has no impact on property tax in Valais.
Exemptions
Some cantons, such as Vaud provides property tax exemptions for certain buildings, such as churches or public utility buildings such as schools or foundations.
The canton of Valais, on the other hand, is not as advantageous. It offers no exemptions, even if the building is used for public purposes.
How to Calculate Property Tax?
Estimating a Building's Value
Unlike other assets, the value of a property subject to property tax is not calculated each year. The tax is levied on the ‘gross value’ (also known as the market value or yield value) of the property. Debts are not taken into account in the calculation.
It is generally the purchase price, the construction cost or estimated market value before any deductions (such as wear and tear on the building or mortgages).
La valeur de rendement peut aussi être utilisée pour calculer l’impôt foncier, en particulier pour les immeubles agricoles, où cette valeur est plus tangible.
Tax Rate
Once the value has been estimated, a tax rate of 0.1% (1‰) of the value of the property in question is generally applied. We can then apply the following formula will then be applied:
Estimated Value x 1 / 1000 = Property tax amount
Example
For example, for a property with an estimated value of CHF 500,000, the above formula can be applied as follows:
500'000 (tax estimate) x 1 / 1000 = CHF 500
The amount of property tax to pay will be 500 CHF a year. This makes it an attractive canton compared with other cantons such as Vaud, where the rate is higher and set at 1.5‰.
Conclusion
Property tax is a fact of life for property owners in the canton of Valais. Although its rate is relatively low compared with other countries, it nevertheless represents an annual burden that should not be overlooked.
It is essential for owners to understand how it works and to incorporate it into their financial planning.
Frequently Asked Questions
What is property tax in the canton of Valais?
Property tax is a tax levied each year on real estate. It must be paid by the owners and, in some cases, by the usufructuaries.
Is property tax a federal tax?
No, this is a communal and/or cantonal tax, and it is optional. Some cantons, such as Zurich, Schwyz and Basel-Landschaft, do not levy it.
Does property tax take into account the owner's financial situation?
No this tax is real which means that it is based solely on the value of the property, without taking into account the owner's income or wealth.
What rate of property tax is applied in the canton of Valais?
The tax rate in the canton of Valais is 0.1% (1‰) of the value of the property. It is then calculated as follows:
Estimated Value x 1 / 1000 = Property tax amount
