Tax law

Transfer tax

In the canton of Lucerne, the transfer tax is generally 1.5% of the transfer value, and is payable by the purchaser of the property. This provision is based on the Lucerne Tax Code, SRL No. 645.

https://steuerbuch.lu.ch/band3/handaenderungssteuer

Capital gains tax

Capital gains from the sale of land are calculated using the so-called income tax scale, which applies solely to the gain. The tax rate is 4.2 units. Capital gains are defined as the excess of the sale value over the book value of the land. (SRL No. 647).

https://steuerbuch.lu.ch/band3/grundstueckgewinnsteuer

Gifts and inheritances (Canton of Lucerne)

Gifts:

The Canton of Lucerne does not levy gift tax. However, gifts and advance inheritances made within five years of death are subject to inheritance tax.

Condition: The donor must be resident in Lucerne or the gift must relate to a property in Lucerne.

Inheritance:

Inheritance tax is levied if the deceased was resident in Lucerne or if a property in Lucerne is inherited.

Tax rates range from 0% to 40%, depending on the degree of kinship, the value of the inheritance and the municipality.

• Gifts to spouses, registered partners and cohabiting partners are tax-free.

• Gifts to descendants up to CHF 100,000 are tax-free in all cases. For bequests of 100,000 or more, descendants pay a tax of 1–2%, provided the deceased resided in a municipality with inheritance tax for descendants or, if the deceased resided outside the canton, the inherited property is situated in a municipality with inheritance tax for descendants.

• Gifts to the parental line (e.g. to siblings, nieces and nephews), foster parents and employees are taxed at 6–12% depending on the amount,

• those to the grandparents’ line (e.g. aunts and uncles, cousins) are taxed at 15–30% depending on the amount, and

• those to distant or unrelated persons are taxed at 20–40% depending on the amount.

• Charitable donations within the canton of Lucerne are tax-exempt.

Tax rates:

https://steuerbuch.lu.ch/band3/erbschaftssteuer/estg_steuersatz

Tax assessment procedure:

Tax assessment is carried out by the local authority in which the deceased person was last resident.