Real estate tax and legal advisory

Managing tax and legal risks across the real estate lifecycle

The Swiss real estate market has experienced strong growth over the past two decades and continues to attract both private and institutional investors, whether Swiss or foreign.

As a result, real estate remains a key investment class, but one that operates within a complex tax and legal environment.

Regardless of the form of acquisition — direct ownership or through an acquisition vehicle — investors are confronted with numerous tax and legal challenges that require careful planning and anticipation.

A complex regulatory and tax environment

Real estate transactions in Switzerland are subject to multiple layers of regulation and taxation. Restrictions still apply to foreign investors, and the choice of acquisition vehicle plays a decisive role, particularly about exit strategies.

Additional challenges arise depending on the investor profile:

• private investors face issues such as capital gains taxation, taxable wealth income or real estate gains.
• institutional investors must address matters including dividend remittance, real estate gains tax, VAT and other indirect taxes.

These issues require a thorough understanding of both legal frameworks and tax rules at federal, cantonal and communal levels.

Key tax and legal risks throughout ownership

Tax risks related to real estate investments can be significant, especially in the case of pre existing structures or historical exposures such as back taxes.

Legal obligations are equally extensive and may include questions around:

• allocation of profits between cantons and communes,
• real estate gains taxes,
• transfer duties and property taxes,
• VAT classification, settlements and reporting.

Without appropriate planning and monitoring, these risks may result in unexpected costs or compliance issues.

A tailored approach from acquisition to exit

Managing tax and legal aspects effectively requires a structured and informed approach that considers the situation of both the seller and the buyer, as well as short , medium  and long term objectives.
Our specialists support clients at all stages of the real estate lifecycle, from acquisition to exit. Our services include:

• tax and legal due diligence,
• structuring of acquisition vehicles,
• management of ongoing tax obligations,
• interactions with notaries and tax authorities,
• preparation of tax returns,
• VAT advice, compliance and settlements.

Our objective is to help investors minimise tax risks while identifying opportunities for sustainable tax efficiency throughout the duration of the investment.

Beyond tax and legal considerations, our Real Estate Consulting teams support clients throughout the full lifecycle of real estate projects, from strategy to execution.