When selling a property in the canton of Aargau, property gains tax plays a central role. It is levied on the profit made from the sale of a plot of land or property – and can amount to a considerable sum depending on the situation. To avoid unpleasant surprises, it is worth taking a closer look at the regulations in the canton of Aargau.
What is the real estate gains tax?
Property gains tax is a cantonal tax that is payable on the sale of a plot of land or property if a profit has been made. The profit is the difference between the sale price and the investment costs – i.e. the original purchase price plus value-enhancing investments and deductible costs.
Important: In Switzerland, the canton is responsible for levying property gains tax. Each canton has its own rules – including the canton of Aargau.
Who has to pay property gains tax in Aargau?
The seller of the property is generally liable for tax. It does not matter whether they are private individuals or legal entities. Anyone who sells a property within a short period of time and makes a profit must expect a higher tax rate – because a so-called degressive tax rate applies in Aargau.
Formula for determining profit:
Selling price – investment costs = land profit
(Investment costs = purchase price + value-adding investments + acquisition costs – depreciation)
Deductions possible for:
- Notary and land registry costs
- Broker commissions
- Transfer taxes (if paid by the seller)
- Building permits
- Expenses for sales documentation
The tax rate is reduced depending on the holding period.
| Duration of ownership | Tax rate |
| up to 1 year | 40% |
| up to 2 years | 38% |
| up to 3 years | 36% |
| up to 4 years | 34% |
| up to 5 years | 32% |
| up to 6 years | 30% |
| up to 7 years | 28% |
| up to 8 years | 26% |
| up to 9 years | 24% |
| up to 10 years | 22% |
| up to 11 years | 20% |
| up to 12 years | 19% |
| up to 13 years | 18% |
| up to 14 years | 17% |
| up to 15 years | 16% |
| up to 16 years | 15% |
| up to 17 years | 14% |
| up to 18 years | 13% |
| up to 19 years | 12% |
| up to 20 years | 11% |
| up to 21 years | 10% |
| up to 22 years | 9% |
| up to 23 years | 8% |
| up to 24 years | 7% |
| up to 25 years | 6% |
| from 25 years | 5% |
Source: Canton Aargau – Property gains tax
Anyone who holds a property for many years benefits from significantly lower tax rates in Aargau.
When is property gains tax due in Aargau?
Property gains tax is due after the transfer of ownership – usually when the purchase contract is notarized. The notary or the land registry authority reports the sale to the tax administration, whereupon the tax is calculated and levied.
Are there any exceptions or deferrals?
Yes, in certain cases the tax can be deferred. This applies in particular:
- Replacement purchase: Anyone who sells an owner-occupied property and buys a new property for their own use within a reasonable period of time can defer the tax.
- Gift or inheritance: In these cases, no property gains tax is payable as there is no sale.
- Sale between spouses or as part of a property settlement: Here, too, there is generally no tax deduction.
Note: A corresponding application to the tax authorities is required for tax deferral. Timely planning is crucial.
How is the tax declared?
Property gains tax is not settled via the normal tax return, but via a separate form from the Tax Department of the Canton of Aargau. Sellers must submit all receipts relating to the purchase, sale, investments and deductions.
Online resources:
Property gains tax information sheet Aargau (PDF)
Further information Property gains tax Aargau
Conclusion: plan for tax at an early stage
Property gains tax can have a significant impact on the net profit when selling a property in the canton of Aargau. Good planning and precise documentation of investments and costs are therefore essential. If you check the tax consequences at an early stage or seek professional advice, you can avoid unpleasant surprises – and possibly even save taxes.
With an experienced real estate partner at your side, you not only secure the best sales price, but also sound advice on tax issues such as property gains tax.