Selling property in Fribourg: how property gains tax is calculated
Selling a flat, a house or a plot of land? The profit is subject to a separate tax. Here is how it is calculated, and what makes it vary.
When you sell a flat, a house or a plot of land that you hold privately in the canton of Fribourg, the profit is subject to a separate tax: property gains tax. It is assessed on its own, outside your annual tax return, and the Confederation does not levy it on the sale of private property.
How is the gain calculated?
The taxable gain is the difference between the sale price and the cost price. The cost price is the purchase price, increased by the spending that added value to the property: an extension, a conversion, a new installation… Certain costs linked to the purchase and the sale also count.
Ordinary maintenance does not: it is deducted from your income, year after year. Hence the importance of keeping every invoice for work done, sometimes for decades. For a property bought long ago, special rules apply to set the cost price.
A rate that falls with the years
The rate depends on how long you owned the property:
- up to 2 years: 22%
- up to 4 years: 20%
- up to 6 years: 18%
- up to 8 years: 16%
- up to 10 years: 14%
- up to 15 years: 12%
- more than 15 years: 10%
On top of the cantonal tax comes that of the municipality where the property is located, which amounts to 60% of the cantonal tax. Gains below 6,000 francs in a calendar year are not taxed.
When the tax is deferred
The tax is not always due at the time of the transfer. In particular, it is deferred on inheritance, on an advance on inheritance, and on a gift.
If you sell your main home and buy a new one within two years, the tax can also be deferred, in full or in part: this is replacement purchase relief. The deferred gain is not cancelled, though; it will be taken into account on a later sale.
How does the procedure work?
After the sale, the Cantonal Tax Administration sends you a special return to complete, which is used to determine the exact gain. That is the moment when you need to be able to prove every item of spending that increases the cost price.
How we help
Before the sale, we estimate the tax with you, so that you can set your price knowing where you stand. After the sale, we gather the supporting documents with you and complete the special return together.
A question about selling your property? Call us.
+41 26 303 36 69