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Buying property in Valais, Switzerland? Learn how real estate capital gains tax works, why rates fall over time, and how the five-year resale restriction affects foreign owners.
Buying property in Valais, Switzerland? Learn how real estate capital gains tax works, why rates fall over time, and how the five-year resale restriction affects foreign owners.
When buying property in Switzerland, it is important to understand that capital gains tax is not calculated in the same way across the whole country. Property taxes are set at cantonal level, meaning the rules and rates can vary depending on where the property is located.
In the canton of Valais, which includes Alpine resorts such as Saas-Fee, Saas-Grund, Grimentz, Verbier and parts of the 4 Vallées, real estate capital gains tax is based on two main factors:
- The size of the taxable gain
- The length of time the property has been owned
In general, the longer the property is held, the lower the capital gains tax rate becomes.
However, there is an important distinction between foreign owners and Swiss residents.
How the rules differ for foreign owners and Swiss residents
For Swiss residents, the Valais capital gains tax grid can apply from the first year of ownership. This means that if a Swiss resident sells a property and makes a taxable gain, the relevant Valais tax rate is applied according to the size of the gain and the length of ownership.
For foreign and non-resident owners there is a hard restriction that comes before any tax calculation. In Valais, every authorisation granted to a foreign buyer carries a five-year prohibition on resale, noted against the title. It applies to any onward sale, including a sale to a Swiss buyer, and the notary cannot sign the resale deed until the five years have run. Release is possible only for compelling reasons, such as death, bankruptcy or proven hardship. In practice this means the first five years of the taper below are not available to you at all — the year 1 to year 5 rates are academic.
A separate rule runs the other way: a seller must have owned a property for five years before it can be sold to a foreign buyer, which limits the resale stock available to foreign purchasers.
Where an early release from the resale prohibition is sought on the grounds of proven financial hardship, the burden of proof is high. A foreign owner may need to provide the authorities with detailed evidence, such as five years of tax returns, bank statements, wage slips and other financial records, to show that they are genuinely in a position of extreme financial hardship that only the sale of the property can alleviate.
In practical terms, foreign owners should assume that a Valais holiday property cannot be resold during the first five years of ownership unless the authorities grant an exceptional release. From year six onward, the standard Valais capital gains tax grid applies.
Valais capital gains tax example
For a taxable gain of more than CHF 100,001, the Valais real estate capital gains tax rate is:
| Length of ownership | Swiss resident | Foreign/non-resident owner |
|---|---|---|
| Year 1 | 38.40% | Resale prohibited* |
| Year 2 | 36.00% | Resale prohibited* |
| Year 3 | 31.20% | Resale prohibited* |
| Year 4 | 28.80% | Resale prohibited* |
| Year 5 | 26.40% | Resale prohibited* |
| Year 6 | 24.00% | 24.00% |
| Year 10 | 20.16% | 20.16% |
| Year 15 | 15.36% | 15.36% |
| Year 20 | 10.56% | 10.56% |
| Year 25 | 5.76% | 5.76% |
| After 25 years | 3.00% | 3.00% |
*For foreign/non-resident owners in Valais, years 1–5 should be understood as a resale prohibition rather than a higher tax band. A resale during this period is generally not permitted unless the authorities grant an exceptional release for compelling reasons.
This is why Swiss Alpine property, particularly in Valais, is usually best viewed as a medium to long-term purchase rather than a short-term resale opportunity.
Why this matters for buyers
For international buyers considering resorts such as Saas-Fee, Grimentz or Verbier, the key point is that the first five years are not simply a period of high taxation. For foreign owners in Valais, resale is generally prohibited during this period. After year five, the Valais capital gains tax system becomes relevant, with tax rates reducing over time.
There is also an important implication for buyers looking at resale property. A property must generally have been owned for at least five years before it can be sold to a foreign purchaser, which can restrict the stock of existing homes available to international buyers.
For Swiss residents, the capital gains tax grid is relevant from the beginning of ownership.
In both cases, where capital gains tax applies, it is applied to the taxable gain rather than the full sale price. This usually means the difference between the sale price and the recognised investment costs, which may include the original purchase price and certain eligible costs connected to the property.
As always, buyers should take professional tax and legal advice before purchasing or selling property in Switzerland. The final position can depend on the canton, the buyer’s residency status, the ownership structure, the type of property and the individual circumstances of the sale.
For more guidance, read our full Switzerland buyer information guide or browse our latest Swiss property for sale.
