Acquisition of a First Home in Fribourg: Tax Advantages from 2024

Ownership of a first home is becoming more attractive in the canton of Friborg with the recent amendments to the law on transfer duties and duties on real estate pledges (LDMG). Adopted during the session of September 6, 2023 by the Grand Council of Friborg, this reform is a concrete response to motion 2021-GC-115, tabled by deputies Romain Collaud and Bertrand Morel.

Concretely, this reform offers a significant incentive to buyers of their first home, intended to be used as their main residence for at least 2 years. The reduction in transfer taxes is based on a reduced valuation of CHF 500,000.— when the total price of the land and the work does not exceed CHF 1,000,000.—. If the price is between CHF 1,000,001.— and CHF 1,500,000.—, the calculation base is reduced by CHF 250,000.—.

To illustrate these changes, let's take the example of a property worth CHF 1,000,000.—. Currently, transfer duties amount to CHF 30,000.— (3%). With the reduction of the calculation base to CHF 500,000.—, the transfer taxes increase to CHF 15,000.—, allowing a tax saving of CHF 15,000.—.

Likewise, for a property worth CHF 1,300,000.—, the current transfer taxes of CHF 39,000.— are reduced to CHF 31,500.— with the new calculation basis of CHF 1,050,000. .—, resulting in a saving of CHF 7,500.—.

This tax advantage is subject to certain conditions. The buyer must not already own a home, even by inheritance. In addition, he must reside in the new home for at least 2 years without interruption from the day of his installation. Failure to comply with this condition will result in the tax benefit being revoked by the authorities.

To benefit from this tax reduction, the deed of acquisition must be signed after the entry into force of the law, scheduled for January 1, 2024, subject to the absence of a referendum. Any signature before this date, whether it is a right of refusal, a forward sale or a promise to purchase, will not allow you to benefit from the tax advantage.

In conclusion, this legislative modification offers a significant financial incentive for the purchase of a first home in Fribourg. Future buyers will need to pay attention to the date the law comes into force, as well as the value of the property, because the tax savings vary depending on the price, with a clear preference for properties up to at CHF 1,000,000.—. Beyond CHF 1,500,000.—, no deduction will be granted.