Do you own a property in Switzerland? Then there's good news: Many costs related to your property can be deducted from taxes. In this article, we'll explore which expenses are tax-deductible and how you can best take advantage of them.
1. Tax Deductibility of Maintenance Costs
What falls under this category?
Maintenance costs that preserve the value can be considered in the tax declaration. This includes expenses for painting, roof and heating repairs, as well as fees for chimney cleaning and gardening work. Owners of apartments can also deduct administrative costs such as caretaker wages or management fees.
2. Energy Efficiency Improvements
Utilize tax benefits
Investments in energy efficiency are not only good for the environment but also for your wallet. Tax-deductible items include the installation of a heat pump, the use of renewable energy, and energy-efficient renovations to walls, floors, and windows. If these expenses exceed your taxable income, you can spread the costs over two additional tax years.
3. What is not deductible?
Value-increasing costs
Expenses that increase the value of your property, such as a kitchen remodel with additional facilities, are not deductible. Additions to your house also fall under these value-increasing measures.
4. Levies and private costs
What does not belong here?
Costs for water, waste, sewage, and private heating expenses are generally not tax-deductible, as well as expenses for home furnishings.
Case Study: Muster Family
The Muster family decided to renovate their property. They carried out painting, installed a solar system, and built a conservatory. The painting and installation of the solar system are tax-deductible as value-preserving measures and investments in energy efficiency. However, the construction of the conservatory is considered a value-increasing measure and is therefore not deductible.
Conclusion
Tax deductions can vary depending on the canton. It is advisable to consult the guidelines of your canton for specific regulations. By correctly deducting the allowed costs, you can significantly reduce your tax burden.
