Easements can become tax-relevant

The granting of an easement for a fee can become a tax burden depending on the canton, type, scope and duration of the easement.
The Federal Supreme Court had to decide whether the compensation paid to a neighbour for the entry of a plant and building height restriction in the land register can be regarded as taxable income. The charge was made in return for a one-off payment of CHF 1 million and was permanent. Contrary to the practice of many cantons, the Federal Supreme Court has ruled in favour of the taxability of easements.
Land can be encumbered by various rights, such as usufruct, residential rights, rights of way, building rights or building restrictions as well as public restrictions on ownership. If such rights are granted in return for payment and the management or market value of the property is permanently and significantly impaired, this triggers property gains tax. This is treated similarly to a partial sale of the property.
For income tax purposes, the charge is deemed to be a private tax-free capital gain. If the charge is not permanent or the consideration is paid periodically, it is normally subject to income tax.
In the present case, the homeowner had to pay income tax on the compensation of CHF 1 million, as the sum is insignificant in relation to the market value of the property of CHF 50 million and there was no sale. (Source: BGE 2C_730/2021 of 19.05.2022)