Second Homes Remain Excluded

The Canton of Bern is proposing more flexible tax exemptions for primary-residence buyers. However, purchasers would have to pay the property transfer tax upfront and apply for a refund later, while second homes and holiday properties would remain excluded.

The Bernese cantonal government has proposed changes to its property transfer tax (Handänderungssteuer), potentially making it easier for buyers of owner-occupied homes to qualify for an exemption.

Under the current rules, buyers who use a property as their principal residence can claim an exemption on the first CHF 800,000 of the purchase price. This threshold would remain unchanged, but the qualifying conditions would become more flexible.

Currently, buyers must move into an existing property within one year of purchase, or within two years for a newly built home. They must then occupy it personally and exclusively as their residence for at least two consecutive years.

Under the proposed legislation, it would be sufficient to use the property as a principal residence for at least six months within four years of purchase.

The exemption could also apply where part of the property is rented out or used for business purposes, such as a home office or registered company address. Parking spaces and ancillary rooms purchased under the same contract could also qualify, provided they directly serve the residence.

Pay first, reclaim later
One significant change concerns how the tax would be collected.

At present, qualifying buyers can apply to defer payment for two years. Under the proposed system, the tax would become payable when the property is registered with the Land Registry. Buyers who subsequently meet the exemption requirements would have up to four years from the purchase date to apply for a refund.

For Gstaad's international property market, an important distinction remains: second homes, holiday properties and commercial buildings would continue to be subject to the property transfer tax.

The proposed amendments are now open for public consultation until 7 January 2027. No changes have yet been enacted.

Edited by JW | Source: Canton of Bern