If you make a profit on the sale of a property or land, this profit will be subject to property gains tax. Calculation of the property gain on which taxation is based takes account of the so-called investment costs, which are deducted from the sale price. Besides the original purchase price, investment costs include all value-enhancing investments and the costs for the sale (brokerage fees, transfer tax, advertisements, land registry fees, etc.). Depending on the canton, various provisions will apply. Many cantons allow relief for property owners who have owned their house or land for many years prior to the sale. So three factors matter when calculating property gains tax:
Amount of profit resulting from the sale
Duration of ownership
Location
In some circumstances, property gains tax will not be payable immediately. This is referred to as tax deferral. Those who, within a reasonable period of time, invest the proceeds from the sale in a property they will be occupying can take advantage of this.