Art. 87 Tax Law (TL)

**1 Tax on Real Estate Gains**

1. The tax on real estate gains is applied to profits realized upon the alienation of real estate property, a share of a property, or a hydraulic power, which are part of the taxpayer's private or commercial assets, as well as upon the alienation of rights associated with such assets.

2. The profit associated with the transfer to a third party of a right encumbering a property does not constitute a real estate gain.

3. Gains are only taxed if they amount to at least 4,000 francs.

4. As an exception, the following are subject to income or profit tax

a) Gains realized on properties the taxpayer trades in the exercise of their profession;

b) Allowances or compensations for the temporary burden of properties and hydraulic power constituted by easements, or by property restrictions based on public law, and for the temporary granting of personal rights to utilization or enjoyment; when these allowances relate to legal acts equivalent to a partial alienation, they are only taxable to the extent that they exceed the portion of the acquisition price;

c) Amounts amortized in accordance with tax law and not taxed, which are realized upon an alienation (Art. 16, para. 2, letter a);

d) Gains realized by collective investment schemes that hold properties in direct ownership.

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