Income tax on donations is not levied at a federal level. It is only imposed on a cantonal and communal level. In the canton of Vaud, donations are subject to income tax.

For a real estate donation, the tax is levied in the place where the property is located. For moveable property, the tax is levied in the place of residence of the donor.

However, it is the beneficiary of the donation who must pay the tax. In the canton of Vaud, there is joint liability for the payment of tax on donations.

It is not, however, owed on donations of less than 10,000 CHF per beneficiary in the same year. The limit is 50,000 for direct descendants. Although cantonal income tax is due in all cases (with the application of the aforementioned franchises), some communes have decided not to levy the tax for direct descendants.

The tax rate depends on the degree of kinship and the amount of the donation received. The rate is progressive.

For calculating the tax on donations, goods are estimated at their market value in principle. As for buildings, they are considered at 80% of the amount of the tax estimate set by the Land Registry. It should be specified that the tax authorities may request a review of this estimate. In this case, it is 80% of the amount of the new estimate that is used to calculate the tax amount.

The donor’s mortgage debts taken on by the beneficiary are deducted from the given value, subject to tax on donations.

The information contained on this website is for information purposes only. This information can in no way be construed as a recommendation, invitation, or offer to conclude a contract, nor to purchase or sell real estate.