Taxation

Edmond de Rothschild Real Estate SICAV - Swiss mainly holds itsproperties in its own name (direct ownership). Swiss-domiciled investors are therefore exempt from property income tax.

All income and capital gains from the real estate business held in the name of the sub-fund are taxed at sub-fund level. These sub-funds benefit from advantageous tax rates compared with private investors or legal entities holding property. For example, the direct federal tax charged to the SICAV is 4.25% versus 8.5% for legal entities and 11.5% for natural persons.

Shareholders are also exempt from real estate wealth tax, the value of which is measured at zero by the tax authorities. For investors, only non-real estate wealth and income are taxable. Buildings owned through corporations are also considered as sources of non-real estate income liable for tax.

ERRES-Swiss owns roughly 20% of its buildings through corporations. Based on cumulative reserves, the sub-fund is able to distribute coupons that are completely tax-exempt for investors.

 

This information is provided for informative purposes. Existing and potential investors are advised to assess the implications of investing in a sub-fund from the SICAV, with a tax advisor where applicable.