§ 4 Real Estate Capital Gains Tax Act (GGStG) - Deferred Tax Sale

1. Tax is Deferred

1. in the event of a change of ownership through inheritance processes (inheritance succession, partition, bequest), anticipation of inheritance, and donation, subject to § 17 paragraph 3;

2. * in the event of a change of ownership between spouses, including as a result of marital property division, and between registered partners, provided both parties agree;

3. in land reallocations for the purpose of land consolidation, district planning, boundary adjustment, rounding off agricultural holdings, as well as in land reallocations during expropriation proceedings or in the event of impending expropriation;

4. in the case of a sale by an institution exempt from tax under § 70 paragraph 1e-i of the Tax Law, provided the proceeds from the sale are used to acquire a replacement property in Switzerland. The provisions of § 78 of the Tax Law apply correspondingly;

5. * in restructurings within the meaning of §§ 26 and 75 of the Tax Law in cases subject to the application of this law (§ 1);

6. * in the complete or partial sale of a self-operated agricultural or forestry property, provided the proceeds from the sale are used within two years before or after the sale to acquire a self-operated replacement property in Switzerland or to improve one's own, self-operated agricultural or forestry properties;

7. * in the sale of a permanently and exclusively self-used residential property (single-family house or condominium, excluding holiday and secondary homes), provided the proceeds from the sale are used within two years before or after the sale to acquire or build a similarly used replacement property in Switzerland.

2. In the event of a sale of a property for which a tax deferral according to paragraph 1, points 4, 6, or 7 was granted upon acquisition or for its improvement, the reinvested gain must be deducted from the investment costs.

3. If a deferral according to paragraph 1, points 6 or 7 is granted, the period of two years after the sale may be extended to a maximum of four years in justified cases.

4. In the event of a tax-triggering sale of the replacement property located in another canton, the deferred gain in the canton of Lucerne may be subsequently taxed according to paragraph 2, provided that the other canton claims subsequent taxation in a similar case. The government council can enter into reciprocity agreements with other cantons on this matter.

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