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Real estate capital gains tax in Valais: the rule explained
Taxable gain, holding period, deductions and reinvestment relief: how real estate capital gains tax is calculated in Valais, with a worked example…
Table of contents
A worked example: an apartment sold in Sion
A seller bought a 4-room apartment in Sion in 2014 for CHF 420'000. He sells it in November 2026 for CHF 560'000, after CHF 35'000 of renovation work on the kitchen and bathrooms. Holding period: 12 years. The gross gain is CHF 140'000. After the works, the taxable gain falls to CHF 105'000, before costs.
This sum is the basis for calculating the tax. The rate, for its part, depends on the holding period. In this article, the rule is worked through around this example, with the split between federal law and cantonal law.
In Sion, a 4-room apartment sells for around CHF 6'500 to CHF 8'500 per m2. A sale takes on average four to five months. The taxable gain is calculated on the price actually received, not on the tax value.
| Item | Amount | Share |
|---|---|---|
| Taxable gain before costs (basis for calculating the tax) | CHF 105'000 | 75% |
| Value-adding works deducted (kitchen and bathrooms, on supporting documents) | CHF 35'000 | 25% |
| Total | CHF 140'000 (gross gain) | 100 % |
Taxable gain before costs (basis for calculating the tax)
AmountCHF 105'000
Share75%
Value-adding works deducted (kitchen and bathrooms, on supporting documents)
AmountCHF 35'000
Share25%
Total
AmountCHF 140'000 (gross gain)
Share100 %
Key takeaway
The CHF 35'000 of value-adding works reduce the taxable gain by a quarter, and brokerage and notary costs are still deductible on top.
Source: Art. 12 LHID (RS 642.14) — fedlex.admin.ch. Worked example: purchase 2014 CHF 420'000, sale November 2026 CHF 560'000. Still to be deducted: brokerage costs (2 to 3% of the price, i.e. CHF 11'200 to CHF 16'800) and notary costs.
Who is taxed and on what basis
The principle comes from federal law. Art. 12 of the Federal Act on the Harmonisation of Direct Taxes of the Cantons and Communes (LHID, RS 642.14) taxes gains made on the disposal of a privately held property. The canton then sets the scale and the procedures. In Valais, the cantonal tax law applies, and the cantonal tax administration carries out the assessment.
The taxable gain is the difference between the sale value and the purchase value, increased by value-adding investments. In other words: sale price less acquisition price, less the works that increased the value of the property, less certain costs.
The seller is the person who was the owner at the time of transfer. Two co-owning spouses are each taxed on their own share.
Private asset or business asset: the distinction matters. For a property forming part of private wealth, the gain is taxed separately, as real estate capital gains tax. For a property forming part of business assets (developer, company, self-employed person who has entered it on their balance sheet), the gain is included in income and follows a different regime, with possible social security contributions. A property bought in order to be resold quickly may also be reclassified as gainful activity. In case of doubt, have the administration rule on it before the sale.
Under Art. 12 LHID, the gain made on the sale of a private property is taxed by the canton in which the property is located, regardless of the seller's tax residence.
The scale and the holding period
Valais applies a degressive scale: the longer you keep the property, the lower the rate. Conversely, a quick resale is subject to a surcharge. The exact periods, the rates and the threshold from which the rate is lowest are set out in the Valais tax law and in the scale currently in force. I do not quote any percentage here without a reference date: confirm them on the website of the cantonal tax administration (vs.ch) before setting your sale price.
What is stable is the logic. Each year of holding lowers the rate down to a floor. Below a certain number of years, a surcharge is added. For our seller from Sion, 12 years of holding places him in the degressive zone, far from the surcharge.
How is the period counted? From the date of acquisition (entry in the land register or transfer of risks, depending on cantonal practice) to the date of disposal. Certain situations, such as an inheritance or a gift, allow the holding period of the previous owner to be taken over. Cantonal law specifies this, to be checked case by case.
Field tip: a month's delay in signing can change the bracket. If you are a few weeks away from a threshold, look at the calendar before signing.
What can be deducted
Deductions are not made at random. Two categories, two treatments.
On purchase, the following are added to the acquisition value: notary fees, land registry fees and the transfer duty paid at the time of purchase. The transfer duty in Valais is a tax of the canton and the communes calculated on the price; its rate should be verified with the cantonal authority. For a purchase at CHF 420'000, expect a few thousand francs: this amount is added to the acquisition price used.
On sale, the following are deducted: brokerage, advertising and notary costs on the seller's side. A broker often charges 2 to 3% of the price: on CHF 560'000, that represents CHF 11'200 to CHF 16'800 deductible from the gain.
Works are assessed in two blocks:
- Value-adding works (new kitchen, extension, façade insulation, new bathroom): deductible from the gain, on presentation of supporting documents.
- Maintenance works (painting, replacing a tap, boiler servicing): already deducted from your income in previous years or not deductible from the gain. They do not come into play here.
In condominium ownership (PPE), running costs represent 0.5 to 1% of the value of the property per year, renovation fund included. These amounts are not deductible from the gain, unlike works that increase the value of the property.
Supporting documents to keep: purchase deed, detailed invoices from tradespeople, proof of payment, notary's statement, brokerage mandate. Without documents, the administration may refuse the deduction. Keep everything from the time of purchase, not in the two weeks before the sale.
| Criterion | Value-adding works | Routine maintenance and charges |
|---|---|---|
| Tax treatment | Deductible from the gain, on supporting documents | Not deductible from the gain |
| Examples | New kitchen, extension, façade insulation, new bathroom | Painting, replacing a tap, boiler servicing, current condominium charges (0.5 to 1% of the value of the property per year) |
| Effect on the taxable gain | Reduce the gain (Sion case: CHF 35'000 of works, taxable gain from CHF 140'000 to CHF 105'000, before costs) | None: already deducted from income in previous years or not deductible from the gain |
| Supporting documents to keep | Purchase deed, detailed invoices from tradespeople, proof of payment, notary's statement, brokerage mandate | Not applicable for the calculation of the gain |
Tax treatment
Value-adding worksDeductible from the gain, on supporting documents
Routine maintenance and chargesNot deductible from the gain
Examples
Value-adding worksNew kitchen, extension, façade insulation, new bathroom
Routine maintenance and chargesPainting, replacing a tap, boiler servicing, current condominium charges (0.5 to 1% of the value of the property per year)
Effect on the taxable gain
Value-adding worksReduce the gain (Sion case: CHF 35'000 of works, taxable gain from CHF 140'000 to CHF 105'000, before costs)
Routine maintenance and chargesNone: already deducted from income in previous years or not deductible from the gain
Supporting documents to keep
Value-adding worksPurchase deed, detailed invoices from tradespeople, proof of payment, notary's statement, brokerage mandate
Routine maintenance and chargesNot applicable for the calculation of the gain
Key takeaway
Only works that increase the value of the property, supported by invoices, reduce the taxable gain: in Sion, CHF 35'000 of renovation brings the gain down from CHF 140'000 to CHF 105'000, whereas painting, a tap, a boiler or condominium charges change nothing.
Source: Art. 12 LHID (RS 642.14) — fedlex.admin.ch; Valais tax law — vs.ch
Deferral in the event of reinvestment
Federal law provides for a tax deferral when you sell your main residence and buy another. This is Art. 12, para. 3 LHID. The gain is not exempt: taxation is deferred, and the gain is carried over to the acquisition value of the new property.
Typical conditions:
- the property sold was your main residence (occupied on a lasting basis, not a second home);
- you reinvest in a dwelling that also serves as a main residence, in Switzerland;
- the reinvestment takes place within a period set by cantonal law (as a general rule two years before or after the sale).
If the price of the new property is lower than the sale proceeds, the deferral is partial. The portion not reinvested remains immediately taxable.
Reinvestment outside the canton: federal law allows it. Valais then defers taxation, but the deferred gain follows the property. On a later sale of the new dwelling, the canton where it is located will have to take this deferral into account. Keep the Valais tax assessment decisions, you will need them.
Example: you sell in Sion, taxable gain CHF 105'000, and buy a more expensive dwelling in Lausanne. Valais may defer the tax. The deadlines and documents to be provided (purchase deed for the new property, proof of occupation) should be confirmed with the cantonal tax administration.
Full worked example: 12 years versus a quick resale
Let us return to the seller from Sion, step by step.
Sale price: CHF 560'000
Purchase price: CHF 420'000
Acquisition costs (notary, land registry, transfer duty): CHF 9'000
Value-adding works: CHF 35'000
Selling costs (brokerage 2.5%, advertising, notary): CHF 16'000
Acquisition value used: 420'000 + 9'000 + 35'000 = CHF 464'000.
Gross gain: 560'000 less 464'000 = CHF 96'000.
Taxable gain after selling costs: 96'000 less 16'000 = CHF 80'000.
These amounts are working assumptions to illustrate the method. The rate comes from the Valais scale in force: apply it to CHF 80'000 after checking it on vs.ch.
Reading the effect of the holding period. Let us keep exactly the same property, but resold after 2 years instead of 12. The taxable gain remains close to CHF 80'000, because the base does not change. What changes is the rate: the surcharge for a short holding period applies, and the bill rises markedly. Same base, heavier tax. Conversely, after 12 years, the rate approaches the floor.
Practical rule: before setting your price, calculate the taxable gain and ask for the rate applicable to your holding period. The net amount in your pocket depends on these two figures.
Valais, Vaud, Neuchâtel: what differs
The principle is the same everywhere (Art. 12 LHID). The differences relate to the scale, the holding period and the transfer duty. The table gives the points to compare. The quantified rates should be confirmed with each cantonal administration, as they change.
Criterion | Valais | Vaud | Neuchâtel
Regime for private gains | Special tax on the gain, degressive scale | Real estate capital gains tax, rate depending on period | Real estate capital gains tax, rate depending on period
Quick resale | Surcharge | Surcharge | Surcharge
Transfer duty on purchase | Yes, canton and communes | Yes, cantonal and communal duty | Yes, cantonal duty
Deferral on reinvestment | Yes (main residence) | Yes (main residence) | Yes (main residence)
To be confirmed | vs.ch | vd.ch | ne.ch
For the question that matters, how much do I keep after the sale, remember three things. The holding period weighs more than the canton in ordinary cases. The transfer duty paid on purchase is recovered as a deduction from the gain. And buying in Vaud or Neuchâtel while having a Valais property to sell means looking at the canton in which each property is located: it is the one that taxes.
A seller wishing to compare Vaud and Valais will rely on each canton's website. The keywords "impôt gain immobilier Vaud" or "gain immobilier Vaud" lead to the Vaud administration. For Neuchâtel, follow the same approach with the cantonal tax service.
Deadlines and steps before signing
The sale goes through a notary. In Valais, the authentic deed is drawn up by a notary, who notifies the disposal to the cantonal authority responsible for assessing the gain. You do not have to do this yourself, but you must provide the documents.
Order to follow:
- Before the preliminary contract: gather the purchase deed, works invoices and supporting documents for costs.
- Calculate the taxable gain and ask for the rate applicable to your holding period.
- Provide for the security: the canton may require that a sum covering the presumed tax be withheld from the price and deposited with the notary, to guarantee payment. This retention reduces the amount paid to the seller on the day of signing.
- Signing at the notary's and notification to the authority.
- Assessment: the administration issues a decision. Allow a few weeks to a few months depending on the file.
- Payment within the period indicated on the decision. Where security has been retained, the balance is released after final assessment.
If you are reinvesting, attach the deferral request and the purchase documents for the new dwelling. An omission may lead to immediate taxation.
Reviewing the sale price is simpler before the property goes on the market than after. To increase what you take from the sale, also look at how to add value to the property beforehand: see how to increase the value of your property in Switzerland. The right reflex: have the property valued, then calculate the tax before displaying the price.
“This article is provided for information purposes only and does not constitute legal, tax or financial advice; as Valais legislation on real estate capital gains tax may change, we recommend consulting a notary or a tax specialist before any decision or property transaction.”
FAQ
The seller, that is, the owner at the time of transfer. The tax is due to the canton in which the property is located, even if the seller lives elsewhere. Two co-owners are each taxed on their share of the gain.
Sale price less acquisition value (purchase price, acquisition costs, transfer duty), less value-adding works and selling costs. The result is the taxable gain, to which the rate depending on the holding period applies.
No. Only value-adding works (kitchen renovation, insulation, extension) are deductible from the gain, on presentation of invoices. Routine maintenance (painting, repairs) does not enter into this calculation. Keep every supporting document.
Yes, for the main residence. Art. 12 LHID allows a deferral if the sale proceeds are reinvested in a new main residence in Switzerland, within the period set by the canton. A partial reinvestment gives a partial deferral.
With the cantonal tax administration, on vs.ch (real estate gains section). Rates and holding periods may change. Check the version in force and its date before setting your sale price.
Louis-Marie Tortiello
contact@relocation-genevoise.ch
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