Property taxation often seems labyrinthine. Yet, once properly understood, it becomes a powerful lever to manage renovations, plan a sale or calmly manage a PPE property.
This article summarises the answers of Luca Colletti (Fidexpert), guest on La Voix du Bâtiment, making them actionable for private owners.
Who is Fidexpert? Who is the guest?
Fidexpert: a French-speaking Swiss group founded in 2003, specialising in taxation and advisory services (small businesses, SMEs, private individuals), with strong activity in property taxation.
Luca Colletti: tax specialist, advises private individuals (tax returns, sales), PPE and institutional players.
The taxes that orbit around a property
Around a home (primary residence, second home, investment property), several taxes may overlap:
Property tax (depending on the canton/municipality).
Rental value (for the owner-occupier) : added to taxable income.
Wealth tax (fiscal value of the property minus mortgage debt).
Rental income (if let).
Transfer duties (on purchase/sale, depending on the canton).
Capital gains tax on property (on resale, cantonal schedule).
Profit tax (if held through a company).
Optimising without slip-ups: maintenance ≠ renovation
The key: distinguish between maintenance (often deductible in the year) and renovation/added value (not deductible in the year; taken into account later as property capital gains).
Examples raised:
Maintenance (generally deductible): painting, tiling/bathrooms, waterproofing, like-for-like replacements, etc.
Renovation/added value (not deductible in the year): creation of a veranda, extensions, items that increase the intrinsic value.
Energy measures: often spread over several tax years (depending on cantonal practices; in the episode, Luca mentions spreading over 3 years).
Subsidies: must be declared (do not record only the invoice!).
Rental value: how does it work?
It depends notably on:
Location, habitable area and nuisances.
Year of construction and latest renovations.
In practice, after declaring works on your tax form, the tax authority often reassesses the rental value itself and notifies a new calculation.
Rental income, mortgage and optimisation
Rental income is added to taxable income.
Allowable maintenance + mortgage interest are deducted.
Mortgage: the episode illustrates that reducing your debt too low can increase wealth tax. Sometimes, keeping a moderate level of debt remains fiscally relevant (numerical example discussed by Luca).
Good reflex: have a personalised simulation carried out (income/wealth/interest, resale horizon, inheritance, etc.).
Buying / selling: useful reflexes
Tax assessment: monitor its update; it weighs on wealth.
Transfer duties and capital gains tax on property: anticipate their impact.
Intercantonal/intercommunal allocation: properties are taxed where they are located, even if your tax domicile is elsewhere : there may be several declarations to file.
PPE specifics
Two categories of works: private (your lot) vs common (roof, facade, boiler room, etc.).
Capital calls (ordinary/extraordinary): the payment itself is not deductible; the use (allowable maintenance) may be.
To be added to wealth: your share of PPE liquidity (current account + renovation fund) as of 31 December.
Best practice: smooth major works over several tax years so as not to "waste" deductions in a single year.
Energy works & financing in a PPE
When the renovation fund is insufficient:
Extraordinary capital calls.
Or mortgage increase on the co-owners' side (interest is deductible; wealth vs debt impact to arbitrate).
Reforms and trends (the guest's perspective)
Rental value: if it were to be reformed/abolished, ownership strategies could evolve (e.g. ownership via a real estate company in certain cases).
Case-by-case approach is imperative: wealth objective, holding horizon, income, retirement, inheritance, etc.
Digitalisation of procedures
Strong heterogeneity between cantons (advanced online portals vs more traditional practices)
General trend: accelerating digital exchanges, while keeping classic channels for accessibility.
Luca Colletti's 6 practical tips
Set an overall budget (purchase + works) and your fiscal objective.
Plan (works spread out, PPE calendar, income/salaries).
Compare maintenance vs renovation before starting.
Don't forget subsidies... and remember to declare them.
Simulate the impact of the mortgage (interest/taxation/wealth).
Surround yourself (tax specialist, property expert, mortgage broker) for a global vision.
Mini-glossary
PPE: Propriété Par Étages (condominium ownership).
Rental value: theoretical income imputed to the owner who occupies their home.
Capital gains tax on property: tax on the added value on resale (cantonal schedule).
Transfer duties: tax levied on property transfers.
Going further
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