Tax Red Flags For Newly Created Condominiums

Demand for new condominiums remains strong. But the planning and construction phases are riddled with tax pitfalls – my article highlights three red flags from a developer's perspective

Real estate gains tax, value-added tax or income tax and social security contributions in connection with commercial property transactions are three tax-related stumbling blocks for property developers during the planning and construction phase. In order to avoid undesirable (tax) cost consequences, the specifics of each canton and each individual case must be carefully examined at an early stage. In particular, the duration of ownership of a property, the start of construction and the financing of newly built condominiums must be taken into account.