Property in Germany

People who want to emigrate to Switzerland often ask themselves what will happen to an existing property in Germany. Many Germans decide to move to Switzerland because of the attractive job opportunities, high quality of life and stable economic conditions. However, if a property in Germany is involved in the move, some tax and organisational aspects should be taken into account.

Tax situation for a property in Germany

In principle, a property remains linked to Germany for tax purposes even after emigrating to Switzerland. This means that certain taxes continue to be payable in Germany. These include, above all, income tax on any rental income and property tax. So if you move to Switzerland but keep your property in Germany, you remain liable to pay tax on this income in Germany.

Property for rent in Germany

Many emigrants decide to rent out their property in Germany after moving to Switzerland. In this case, the rental income continues to be taxed in Germany. Although this income usually has to be declared in the tax return in Switzerland, it is generally not taxed again there. Instead, it is often only taken into account when calculating the personal tax rate. This is intended to avoid double taxation.

What happens if the property is not let?

Even if the property is not rented out, it remains relevant. Although there is no additional income tax in Germany without rental income, there are still ongoing costs such as property tax or maintenance. In Switzerland, a property abroad is often included in the assets and can therefore have an impact on wealth tax or the tax rate.

Tax return after emigrating to Switzerland

Whether someone has to submit a tax return in Switzerland depends, among other things, on their residence permit and income. Many people who move to Switzerland for the first time start with withholding tax via their employer. A regular tax return may only be required above certain income limits or if a permanent residence permit is obtained at a later date. Keep or sell your property? People who emigrate to Switzerland are therefore often faced with the decision to keep or sell their property in Germany. Renting out can be an additional source of income and also offers the possibility of returning to Germany at a later date. Selling, on the other hand, can make sense if you need capital for a new start in Switzerland or no longer want to worry about administration and maintenance.

Conclusion: Plan your property in Germany correctly when emigrating

A move to Switzerland therefore does not automatically mean that a property in Germany has to be given up. However, it is important to know the tax rules in both countries and to plan ahead. If you obtain information in good time and check your situation, you can take the step of emigrating and relocating in a much more relaxed manner and avoid possible tax disadvantages.