Real Estate: 2018 Legislative Review
Geneva Cantonal Laws
– Taxation: Changes for 2019
The rental value of owner-occupied real estate is subject to federal taxation. In accordance with harmonization requirements, the canton has agreed to a new method for calculating rental value. To this end, the rental value will be indexed by 4.7% for the year 2018. More information
Under the Real Estate Valuation Act, which is set to expire on the last day of 2018, a new tax measure has been agreed upon. The bill concerning the assessed value of traditional owner-occupied properties (single-family homes and condominiums) will be subject to a flat 7% increase, instead of the 20% initially planned. An appeal may be filed if it is determined that this increase in value does not reflect the actual condition of the property in question. More information
The capitalization rate is also subject to change. Starting in 2019, the rate will be reduced, increasing the tax value of property and, consequently, the wealth tax. More information
– Abolition of the stamp tax
The Geneva Grand Council recently voted on the stamp tax, the purpose of which now appears to be obsolete. Consequently, January 1, 2019, marks the effective date of the repeal of certain articles of the Public Taxes Act (D 3.05) and the Registration Fees Act (D 3.30). In short, as of that date, any official registration in the land registry (whether or not performed by a notary) will no longer be subject to the use of a cantonal stamp. More information
– Housing rental platforms
April 1, 2018, marked the start of the 60-day limit on the rental of real estate through platforms such as Airbnb. In fact, the Council of State amended the RDTR (Regulations Implementing the Law on Demolition, Conversion, and Renovation) to stipulate that a rental period exceeding 60 days is now considered housing used for commercial purposes. It should be noted, however, that following an appeal by citizens and pending a decision by the Federal Court, the maximum rental period has been extended to 90 days. This increase is intended to meet tenants’ expectations while maintaining the number of rental units in Geneva’s housing stock. Le Temps / Tribune de Genève
Federal Laws
– Partial revision of the LAT approved
The Federal Council has approved the second phase of the partial revision of the Spatial Planning Act. The solution proposed by the Federal Council—which involves introducing new rules for areas outside building zones and updating the rules for parcel classification—will now be implemented. More information
– Lex Koller: No revision of the law
The amendment to the law on the acquisition of real estate by foreign nationals was rejected by an overwhelming majority. Political parties, cantons, and interested organizations said no to a law amendment that does not appear to be necessary. More information
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Real Estate: 2018 Legislative Review