Is the home buyer liable for property gains tax?

In Switzerland, the sale of property is subject to property gains tax. This tax is levied on the profit realised from the sale of land or real estate. The exact provisions may vary from canton to canton.

As a rule, the seller is liable for the property gains tax. The seller is obliged to declare the profit realised and pay the tax due.

However, the tax office may claim the property gains tax from the new owner if the seller appears to have no prospect of recovering it. The state has a lien on the property to secure its claims. Not even all legal steps against the actual tax debtor have to be exhausted before the tax office will hold on to the new owner. The fact that the debt is irrecoverable is sufficient.

Conclusion: For security reasons, the buyer should request a document confirming that the seller has already deposited the property gains tax with the tax office at the time of notarisation.