Real estateUpdated:
The short answer
Properties abroad must be declared in the Swiss tax return, even though they are generally taxed in the country where they are located. In Switzerland, their value and income affect the applicable tax rate through the progression proviso. For questions about double taxation, it is advisable to consult a specialist. If you know your declaration obligations and have the necessary documents ready, you avoid queries and uncertainties during the assessment.
Declaration obligation despite taxation abroad
Even if a property is located abroad and taxed there, it must be declared in the Swiss tax return as an asset and together with its income. This serves to correctly determine total taxable income and assets.
Missing information on properties abroad can be treated as an incomplete declaration, which is why careful and complete disclosure is important.
The declaration obligation applies not only to properties owned by a natural person, but can also cover shares in foreign real estate companies or communities of heirs. In such cases, determining the relevant value is often more complex and deserves particular attention.
What does the progression proviso mean?
Under the progression proviso, foreign income or assets are not taxed in Switzerland, but they are taken into account when determining the applicable tax rate. As a result, the tax rate on your other income that is taxable in Switzerland may increase.
This principle prevents persons with substantial assets abroad from benefiting from an artificially low tax rate even though their overall economic capacity is higher.
The progression proviso applies both to the income from the property abroad, such as rental income, and to its asset value. Both figures must therefore be correctly recorded in the tax return, even if they are ultimately not taxed directly in Switzerland.
Double taxation agreements
Switzerland has concluded double taxation agreements with numerous countries that govern the taxation of properties abroad. These agreements determine which country has which taxing rights and how double taxation is avoided.
As the rules are structured differently depending on the country, an individual review by a specialist is advisable, particularly when selling or renting out the property.
- Land registry extract or proof of ownership
- Details of the property's market value
- Evidence of rental income or owner occupation
- Receipts for taxes paid abroad
Inheritance and gift of properties abroad
If a property abroad is inherited or given as a gift, the question often arises as to which country may levy the inheritance or gift tax. For immovable property, the law of the country in which the property is located often applies.
Here too, double taxation agreements or special inheritance tax agreements may apply. As such situations are legally demanding, early advice from a specialist is particularly recommended.
Practical tips for the declaration
To value properties abroad, the tax authorities often use their own conversion rules or recognised comparable values. Exchange rate fluctuations can affect the declared value.
If you inherit, buy or sell a property abroad, you should document the relevant transactions promptly so that you can make the correct entries in your tax return.
If there are uncertainties regarding the valuation or the crediting of taxes, a written enquiry to the competent cantonal tax administration can provide clarity before the tax return is submitted.
Financing and debts relating to the property abroad
If the property abroad was financed with a foreign mortgage, this debt must also be declared in the Swiss tax return. The corresponding debt interest, like the asset value, has an effect through the progression proviso and not as a direct deduction from Swiss income.
In the case of mixed financing from Swiss and foreign funds, a clear allocation of the debts to the respective property is important, so that both the Swiss and the foreign assets can be declared correctly and transparently.
Renting out a property abroad
If the property abroad is rented out, the rental income and the associated maintenance costs must also be declared in the Swiss tax return, even if the actual taxation takes place abroad. The net income is included in the rate determination through the progression proviso.
Similar principles to those for domestic properties often apply when determining the net income, although exchange rates and foreign accounting periods require additional care in the conversion.
Dealing with currency fluctuations
As properties abroad are usually valued and financed in a foreign currency, exchange rate fluctuations can affect the value declared in Swiss francs from year to year. A uniform rate published by the tax administration is usually used for the conversion.
It is worth recording the exchange rates used and their source in your own records, so that the development of the declared value remains traceable over several tax periods and queries from the tax administration can be answered quickly. This also makes it possible to give a plausible explanation for larger fluctuations in value between two tax years.
What you should have ready
- Proof of ownership of the property abroad
- Current market value or official valuation
- Documents relating to rental income or owner occupation
- Evidence of taxes paid abroad
- Information on the applicable double taxation agreement
- Documentation in the event of purchase, sale or inheritance
Frequently asked questions
Sources
General information, not individual tax advice. Status: August 2026. The current guidelines of your canton and the official information of the tax authorities are decisive.
Rather have it done than research it yourself?
Describe your situation to us – free and without obligation.
To the request form