Deductible expenses for your property

Do you own a property in Switzerland? Then there is good news: Many costs associated with your property can be deducted from taxes. In this article, we will discuss what expenses are tax-deductible and how you can best benefit from them.

1. Tax Deductibility of Maintenance Costs

What does this include?

Maintenance costs that preserve value can be considered in the tax return. These include expenses for painting, roof and heating repairs, as well as fees for chimney cleaning and gardening work. Apartment owners can also deduct administrative costs such as caretaker wages or administrative 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 expenses include installing a heat pump, using renewable energies, and energy-efficient modifications 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-enhancing Costs

Expenses that increase the value of your property, such as a kitchen renovation with additional facilities, are not deductible. Extensions to your house also count as value-enhancing measures.

4. Taxes and Private Costs

What does not belong?

Costs for water, waste, sewage, and private heating expenses are generally not tax-deductible, as well as expenses for home furnishings.

Case Study: The Muster Family

The Muster family decided to renovate their property. They conducted painting work, installed a solar system, and built a conservatory. The painting work and the installation of the solar system are tax-deductible as measures preserving value or investments in energy efficiency. However, the addition of the conservatory counts as a value-enhancing measure and is therefore not deductible.

Conclusion

Tax deductions can vary depending on the canton. It is advisable to check the guidelines of your canton for specific regulations. By correctly deducting allowable costs, you can significantly reduce your tax burden.