In Switzerland, there are two systems for the taxation of real estate gains.
- In the monistic system, private and business property gains are subject to a special tax: the property gains tax.
- Under the dual system, business property gains are taxed with income tax (natural persons) or profit tax (legal entities). Private gains from the sale of real estate are subject to real estate gains tax.
In the canton of Solothurn, the dualistic system is applied. In this respect, only sales of real estate held as private property are subject to real estate gains tax.
The real estate profit tax liability is established by every sale of a property (§ 49 Para. 1 TA). A divestiture is first and foremost the transfer of ownership of a property to a third party under civil law. Due to an explicit statutory provision, economic and tax-related circumstances are also considered to be taxable divestitures (§ 49 Para. 2 TA).
Determination of the property gain
The property gain is the difference between the proceeds and the investment costs (§ 53 Para. 1 TA). All services of the purchaser are considered as proceeds, with the exception of usufruct and right of residence (§ 54 TA). The investment costs consist of the purchase price and expenses (§ 55 TA and § 56 TA).