The acquisition of a second home

Second homes are popular!

Although there is a slight slowdown in the urban real estate market, the second home sector is popular. Due to the Covid19 crisis, many buyers are showing an interest in a property close to nature to escape regularly, a setting easily accessible by train or car. The generalization of teleworking also calls for the quest for a three-day weekend in a calm, more private environment and outside urban centers.

When undertaking such an acquisition, many people underestimate the multiple dimensions that must be studied: tax aspects of a purchase in Switzerland or neighboring France, acquisition model directly or through a company, rental of the property part of the time, what method of financing will be, what matrimonial regime may apply, etc.

In the minds of many, buying in France has the disadvantage of high inheritance taxes (45% directly), but it is often possible to significantly lower the tax base of this tax. An acquisition in Switzerland also has significant tax impacts, often omitted from future buyers, such as the taxation of a rental yield value.

These multiple dimensions require a long-term evaluation that goes well beyond the simple purchase price, in order to avoid unfortunate repercussions a posteriori.

We will develop this topic further in a future blog.