|  Ramzi Chamat

Understanding and calculating the real estate gains tax (IBGI) in Geneva in 2024.

In the canton of Geneva, the sale of real estate is subject to a tax on real estate gains, the rate of which varies depending on the length of time the property is held. This progressive taxation encourages long-term ownership and influences real estate investment strategies. Understanding these tax rules is crucial to any real estate transaction, allowing owners and investors to effectively navigate the Geneva real estate market.




When it comes to selling real estate in the Canton of Geneva, property owners are confronted with a crucial but often complex aspect: the tax on real estate gains. This tax, calculated on the difference between the purchase price and the sale price of the property, is adjusted based on the duration of ownership. This unique regulation, with its progressive tax rates, plays a significant role in investment and real estate sales decisions. This article aims to demystify this process, providing owners with the necessary information to understand and calculate the tax on real estate gains, an indispensable aspect of asset management in the Canton of Geneva.



I. Definition of Real Estate Gain IBGI 2024


Real estate gain is the difference between the value at which you sell your property and the price at which you purchased it, adjusted for expenses related to the acquisition and sale. The purchase value includes the acquisition price and additional costs that have increased the value of the property, while the sale value is reduced by the costs related to the sale, such as brokerage commissions.



II. Tax Rates IBGI 2024


The Canton of Geneva applies a progressive tax rate based on the duration of property ownership, as follows:


  • Less than 2 years: the rate is 50%


  • At least 2 years: the rate is 40%


  • At least 4 years: the rate is 30%


  • At least 6 years: the rate is 20%


  • At least 8 years: the rate is 15%


  • At least 10 years: the rate is 10%


  • At least 25 years: the rate is 0%



III. Example of Calculation IBGI 2024


Take the example of a property purchased on March 1, 2013, for 650,000 CHF, with 15,000 CHF in registration fees, and sold on August 1, 2021, for 900,000 CHF, with a sales commission of 27,000 CHF. In this case, the tax-relevant purchase value is 665,000 CHF (650,000 + 15,000) and the tax-relevant sale value is 873,000 CHF (900,000 - 27,000). The real estate gain is therefore 208,000 CHF (873,000 - 665,000).





In conclusion, understanding the system of taxation on real estate gains in Geneva is essential for anyone involved in the real estate market of this canton. With progressive tax rates based on the duration of ownership, the fiscal system encourages long-term property holding and significantly affects investment strategies in real estate. Owners must be well-informed and prepared to navigate this fiscal framework, in order to maximize their profits while complying with their legal obligations.

Taxes on real estate gains and its implications in 2024 for the canton of Geneva.

Taxes on real estate gains and its implications in 2024 for the canton of Geneva.

Inheritance tax in Switzerland.

Inheritance tax in Switzerland.