Capital gains on property in Vaud: understand how your tax is calculated
Real estate guide - 12 August 2026
Read more
In the canton of Vaud, capital gains on property are taxed according to a sliding scale ranging from 30% to 7%: the longer you own the property, the lower the tax bill becomes, down to a minimum rate of 7% after 24 years of ownership. Another advantage worth noting is that years of personal occupation count double in this calculation. Thus, a villa purchased for CHF 1,000,000 and resold for CHF 1,500,000 twelve years later may already qualify for the minimum rate of 7 per cent, provided the owner has lived there for the entire period.
A new development to bear in mind for 2026: the 4.5% flat-rate allowance, which previously allowed acquisition costs to be deducted without supporting documentation, has been abolished. Only supporting documents — the deed of sale, the notary’s statement of account, and invoices for building work — can now be used to reduce the taxable gain.
Ultimately, the tax system is not that complex and offers numerous advantages for those who know how to prepare for it.
How is the real estate capital gain calculated in the canton of Vaud?
Calculating a real estate capital gain in the canton of Vaud, Switzerland, requires a rigorous approach. Property owners receive a precise tax assessment based on several factors that must be analyzed methodically.
Determining the sale price
Determining the sale price is the first step in the calculation. The Vaud tax authorities take into account:
- The final amount received by the seller after deduction of transaction-related costs
- Any additional compensation paid by the buyer
- Any special benefits negotiated in the sale agreement
The net sale price is obtained by subtracting the costs inherent to the sale from the gross sale price:
- Brokerage commission (aproximatly 3% of the amount)
- Notary fees (0.25% to 0.5%)
- Transfer taxes (3.3% in the canton of Vaud)
What costs are associated with the sale of a property?
The main costs associated with a property sale include the brokerage commission, notary fees, and real estate capital gains tax. These costs are deductible when calculating the taxable gain.
Permitted deductions from the purchase price
Regarding permitted deductions from the purchase price, Vaud tax law recognizes several categories of expenses:
Initial acquisition costs
- Transfer taxes paid at the time of purchase
- Notary fees related to the preparation of the deed
- Commission paid to intermediaries
Value-enhancing investments
- Major renovation work
- Structural improvements
- Construction of annexes or extensions
The formula for calculating the taxable real estate capital gain
- Gross gain = Net sale price – Purchase price (including acquisition costs)
- Net taxable gain = Gross gain – Allowable deductions
A practical example: An apartment purchased for CHF 500,000 (including costs) and resold for CHF 700,000. Deductible renovation work amounts to CHF 50,000.
| Step | Amount |
|---|---|
| Sale price | CHF 700’000 |
| Purchase price | CHF 500’000 |
| Gross gain | CHF 200’000 |
| Deductible renovation work (documented) | CHF 50’000 |
| Net taxable gain | CHF 150’000 |
The cantonal tax authorities will then apply the tax rate corresponding to the property’s holding period.
2026 Update: End of the 4.5% Flat-Rate Deduction Without Supporting Documents
This is the most important change for anyone selling a property in 2026 or later.
Until 2025, a property owner could deduct a flat 4.5% of the purchase price as acquisition costs (transfer taxes, notary fees) without having to provide any supporting documentation. Since January 1, 2026, this flat-rate deduction has been abolished in the canton of Vaud.
What this means in practice:
- Transfer taxes and notary fees remain deductible — but only upon presentation of the purchase deed and the notary’s detailed statement of account.
- Owners who can no longer find these documents for an older purchase should request them from their notary or the Land Registry before putting the property up for sale.
- Invoices for value-enhancing work (major renovations, extensions) must also be carefully kept — this requirement is not new, but it becomes even more important without the safety net provided by the flat-rate deduction.
Our practical advice: as soon as you are considering selling, gather the purchase deed, the notary’s statement of account, and all invoices for work that can substantiate a value increase. Without these documents, you may end up paying tax on an artificially inflated gain.
What is the difference between the purchase price and the sale price?
The real estate capital gain is calculated by subtracting the purchase price from the sale price, after deducting costs related to the sale. This difference between the two prices forms the basis for calculating the taxable gain.
Tax rates applicable in 2026
Now that you know how to determine the amount of the real estate capital gain, you should be aware that the Vaud tax authorities apply a sliding scale based on the property’s holding period. The tax burden decreases as the number of years you own the property increases.
Sliding scale based on the holding period
The Vaud tax system rewards long-term ownership with a gradually decreasing tax rate. A property owner will pay a 30% tax on the real estate capital gain when selling during the first year of ownership. This rate then falls to 27% in the second year and 24% in the third year. The decrease continues regularly until reaching 7% after 24 years of ownership.
An interesting feature of Vaud tax law: years of personal occupation of the property count double when calculating the holding period. Thus, a property owner who lives in their primary residence for 12 years will benefit from the rate applicable to a 24-year holding period, namely 7%.
Cases of full or partial tax exemption
The tax authorities have provided for several situations in which the gain is fully or partially exempt from taxation. The law fully exempts gains below CHF 5,000 per tax year, as well as sales carried out by public entities or non-profit institutions. Capital losses, where the sale price is lower than the purchase price plus costs, are not subject to taxation.
Taxpayers may also benefit from a partial exemption or a tax deferral. Tax rollover is a common example: if the owner reinvests the full proceeds of the sale in a new property in Switzerland within a period of two to four years, the tax authorities defer taxation. Only the portion of the gain that is not reinvested will be taxed immediately.
Owners of agricultural or forestry properties also benefit from a special regime. The exemption applies when the proceeds from the sale finance a new investment in the same sector of activity.
How do you declare a real estate capital gain?
The declaration must be submitted to the Cantonal Tax Administration within 30 days following the sale, using the official form and accompanied by the required supporting documents (sale deed, purchase deed, renovation invoices, notary statements of account).
FAQ – Real Estate Capital Gains in Vaud 2026
Has the 4.5% flat-rate deduction been completely abolished?
Yes. Since January 1, 2026, it is no longer possible to deduct acquisition costs at a flat rate without supporting documentation in the canton of Vaud. Only documented expenses can be deducted.
What should I do if I have lost the purchase deed for my property?
Request a copy from your notary or the Land Registry before starting the sale process, so that you do not lose the benefit of deducting acquisition costs.
Is the 3.3% transfer tax paid by the seller or the buyer?
By the buyer. The seller, meanwhile, bears the real estate capital gains tax and the brokerage commission.
Do rental years count double like years of personal occupation?
No. Only the years during which the owner personally occupied the property as a residence count double when calculating the holding period.
Conclusion
Your real estate capital gain deserves a thorough analysis by professionals familiar with the Vaud property market. Calculating the tax involves many factors: holding period, investments made, personal occupation of the property, and more. The specialists at Comptoir Immobilier are familiar with all the subtleties of the cantonal tax system. With 200 years of expertise in the Lake Geneva region, we support every property owner with the declaration of their real estate capital gains in the canton of Vaud.
Contact our experts in Lausanne, Nyon or Montreux for an initial personalized consultation.
Sources:
