Art. 91 Tax Law (TL)

1 The taxation of real estate gains is deferred

a) in the event of land consolidation carried out for purposes such as land reallocation, district planning, boundary adjustment, or expansion of agricultural areas, or within an expropriation procedure or due to imminent expropriation;

b) …

c) in the case of business restructurings for sole proprietorships or partnerships according to Article 17 and for legal entities according to Article 73; Articles 17, paragraph 3, and 73, paragraphs 2 and 4, apply mutatis mutandis;

d) in the case of the disposal of real estate that is part of the fixed assets necessary for operations (Art. 28 and 74b), provided that the proceeds from such disposal are reinvested within a reasonable period in the acquisition of a similar property in Switzerland intended to fulfill the same function within the enterprise; for agricultural and forestry properties, taxation is also deferred if the replacement property belongs to the taxpayer and is operated by them, but does not serve the same function in the enterprise, or if the proceeds from the disposal are used for the improvement of agricultural or forestry properties;

e) in the case of pension institution restructurings as referred to in Article 69, paragraph 1, letter f;

f) in the case of property transfer between spouses relating to the marital property regime or compensation for extraordinary contributions by one spouse to family maintenance (Art. 165 CC) or claims arising from divorce laws, provided both spouses agree;

g) in the case of the disposal of a dwelling (house or apartment) that has been used exclusively and consistently for the personal use of the disposer, insofar as the proceeds thus obtained are used, within an appropriate time, for the acquisition or construction in Switzerland of a dwelling serving the same use;

h) in the case of the transfer of property by succession (inheritance devolvement, succession sharing, legacy), donation or advancement of an inheritance; in the case of an advancement of inheritance, the gift is accepted if the transferee's consideration consists exclusively of

− assuming a burden constituted by mortgage claims for third parties;

− creating, in the case of a transfer to descendants, a right of habitation or usufruct in favor of the transferor;

− committing to pay compensations to co-heirs.

2 When the replacement property acquired (letters d and g of paragraph 1) is located outside the Canton and is subsequently disposed of, the gross gains that have been subject to deferred taxation in the Canton are subject to tax.

3 When taxation is deferred due to private replacement (letter g of paragraph 1) or commercial replacement (letter d of paragraph 1), the tax is deferred only for the part of the gain compensated in the amount reinvested in the replacement property. The portion of the latent reserves realized from the disposal of the former asset that is not reinvested is subject to income tax.

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