Bundesrat committees propose ending tax exemption on property sales after ten years
Several Bundesrat committees are recommending that gains from private real-estate sales be taxed regardless of how long the property was held.
Bundesrat committees have put forward a proposal to abolish the ten-year tax exemption for private real-estate sales, aiming to tax all capital gains irrespective of holding period. The rationale is to align property taxation with that of equities and funds, which are subject to tax from the outset. The draft retains a tax-free provision for self-used dwellings, provided the owner has occupied the home continuously for 36 months, with a six-month grace period before sale.
Properties owned for over ten years when the legislation is enacted would remain exempt under a transitional clause, while shorter-held assets could face full taxation on any profit. The recommendation awaits a final decision by the Bundesrat.
