General information
The tax situation in Valais is among the most favorable, notably due to the absence of inheritance taxes in the direct line, a very advantageous and degressive taxation on real estate gains and a low taxation of wealth.
Once you own your home, your taxation of natural persons is changed; You can deduct interest on your debt, as well as various expenses related to your property, but must declare the rental value of it. The latter corresponds to an estimate of what your property could theoretically yield to you if you had to decide to rent it year-round.
Your property will also be declared for wealth tax, while being able to deduct the value of your debt.
Moreover, for foreign nationals, it is possible to negotiate taxation on a package basis. This type of taxation is possible only under certain conditions and the value of your property then serves as a basis for calculating this tax.
Different municipal taxes (eg taxes on roads, residences, snow clearing), as well as a property tax, must be taken into account, depending on the circumstances.
Finally, in the case of purchase and resale of real estate, a tax on real estate gains is levied. It is based on the difference between the purchase value and the sale value.
Notary fees for purchases / sales
It takes about 3% of the purchase price for notary fees. This amount also includes ancillary costs, such as transfers or various registrations required in the land register.
Funding
Here are some concepts allowing you to address the issue of financing your property:
Equity: For the purchase of a second home and according to the chosen bank, the equity must represent at least 30% of the value of the property you wish to acquire. This is the sum you make personally (in cash or in kind, eg through your land) at the time of the mortgage loan. In the case of a principal residence purchase, the shareholders' equity must represent a minimum of 20%.
Mortgage: A bank loan goes through a mortgage of the property you wish to acquire. This means that your property "belongs" to the bank that grants you a loan until it is repaid.
Amortization: Amortization refers to the amounts you pay annually or according to the rhythm defined with your bank, in order to repay the loan granted for the purchase of your property.
2 and 3 pillars of old-age pensions: these two pension pillars, respectively professional and private, can be useful aids, in particular to achieve the 30% equity (secondary residence) or 20% equity capital (main residence) Necessary for the acquisition of a property or the idea of obtaining a higher mortgage. Your pension fund will be able to provide you with all the useful information and opportunities available to you.