How can I calculate property gains tax in Aargau?
When selling property, you pay property gains tax on the profits. The rules on this vary by canton. Comparis explains what applies in Aargau.
25.04.2023
Unsplash/Claudio Thürlemann
1. Who needs to pay property gains tax?
Selling a private property may lead to you making a profit. As the seller, you usually pay property gains tax on this profit. You may also stipulate that the buyer pays the property gains tax in the purchase agreement. However, in practice this rarely happens.
No property gains tax is payable on profits from the sale of commercial property. They are instead subject to income or profit tax.
What does the amount of property gains tax in Aargau depend on?
In Aargau, the tax rates for property gains depend only on the period of ownership. How much you end up paying depends, of course, on how much you make from the sale.
Would you like to get a first indication of the value of your property? You can have your property valued with Comparis.
2. How high is property gains tax in Aargau?
In the canton of Aargau, property gains tax is between 5–40%. The communes are responsible for collecting this tax.
Property gains tax in Aargau: table of tax rates
Rates for tax calculation (Section 109 of the Tax Act)*
| Percentage | Duration |
|---|---|
| 40% | Up to the 1st full year of ownership |
| 38% | Up to the 2nd full year of ownership |
| 36% | Up to the 3rd full year of ownership |
| 34% | Up to the 4th full year of ownership |
| 32% | Up to the 5th full year of ownership |
| 30% | Up to the 6th full year of ownership |
| 28% | Up to the 7th full year of ownership |
| 26% | Up to the 8th full year of ownership |
| 24% | Up to the 9th full year of ownership |
| 22% | Up to the 10th full year of ownership |
| 20% | Up to the 11th full year of ownership |
| 19% | Up to the 12th full year of ownership |
| 18% | Up to the 13th full year of ownership |
| 17% | Up to the 14th full year of ownership |
| 16% | Up to the 15th full year of ownership |
| 15% | Up to the 16th full year of ownership |
| 14% | Up to the 17th full year of ownership |
| 13% | Up to the 18th full year of ownership |
| 12% | Up to the 19th full year of ownership |
| 11% | Up to the 20th full year of ownership |
| 10% | Up to the 21st full year of ownership |
| 9% | Up to the 22nd full year of ownership |
| 8% | Up to the 23rd full year of ownership |
| 7% | Up to the 24th full year of ownership |
| 6% | Up to the 25th full year of ownership |
| 5% | from the 25th full year of ownership |
*Source (German only): Canton of Aargau / Department of Finance and Resources
3. How do I calculate property gains tax in Aargau?
In the canton of Aargau, profit is calculated based on the difference between the purchase and sale price. The purchase price includes various other costs known as investment costs. You can claim the effective investment costs or, if you have owned the property for at least 10 years, the fixed-rate investment costs. Investment costs include:
Expenses for notary fees and land registry fees
Estate agent costs
Value-enhancing investments
Example calculation of property gains tax in Aargau
The calculation is based on a property purchased on 1 March 2013 and sold on 01 March 2023. In other words, the seller owned the property for 10 years.
| Property purchase price | CHF 900,000 |
|---|---|
| Value-enhancing investments | CHF 0 |
| Sale price achieved | CHF 1,000,000 |
| Profit from the sale | CHF 100,000 |
| Minus estate agent fees (2.5% of the sale price) | CHF 25,000 |
| Net property gains tax (22% up to the 10th full year of ownership) | CHF 16,500 |
4. How can I reduce property gains tax in Aargau?
There’s no way to avoid tax being charged on the sale of your property. As a rule, the longer you’ve owned the house, the lower the tax. There are also ways for you to reduce property gains tax in Aargau. You have two options:
You claim all possible deductions.
You defer the property gains tax.
Claiming all deductions
Remember to claim all possible deductions. These include any value-enhancing investments such as renovations, estate agent commission, the costs of advertising the property, property transfer taxes, notary fees and early repayment charges paid to the bank.
Tip: when you buy a property, you should create a list containing the purchase price, investments and maintenance costs. Here you should list all expenses related to the property, including the date and amount. This allows you to check what deductions you can claim before selling. If you consult a tax advisor, they can determine the optimum solution for you based on the complete documents.
Deferring property gains tax
Under certain circumstances, you can defer property gains tax in the canton of Aargau. This is the case with replacement purchases for owner-occupied property or self-managed agricultural or forestry land. Property transfers also have a tax-deferring effect. Tax-deferring property transfers include:
Inheritance, division of estate and wills
Advancements on inheritance and gifts
Transactions with direct relatives
Legal transactions of married partners
Land apportionment that serves to merge different estates
Land apportionment to round off an agricultural homestead area
Restructuring carried out by legal entities for specific purposes
Please note that both the sale of the property and the replacement purchase must be carried out by the same person for there to be a deferment. In order to have a deferring effect, you may make the replacement purchase a maximum of three years after or a maximum of one year before the sale.
You can find relevant forms, information sheets more details on property gains tax in the canton of Aargau on the cantonal website (only in German).
This article was first published on 25.03.2022
