Holiday homes abroad and Swiss taxes: a brief overview

Foreign holiday properties are not taxed in Switzerland. The country in which the property is located levies taxes on it. The reasons why holiday properties must be declared in the tax return:

• Progressive taxation: In Switzerland, income is taxed progressively. This means that the higher the income, the higher the tax rate. The value of the foreign holiday home and the income generated from it (imputed rental value) is included in the calculation of worldwide income, even if no tax is payable on it in Switzerland.
• Wealth tax: The value of the holiday property is also taken into account for the wealth tax rate.