As Edmond de Rothschild Real Estate SICAV predominantly owns its buildings in its own name (direct ownership), Swiss-domiciled investors are exempt from real estate income tax.

Unlike other Swiss real estate funds, which own their buildings through corporations, the SICAV is liable for any income and capital gains generated from the real estate activity held in its own name.  The SICAV is charged a low tax rate compared to a private investor or a legal entity owning real estate. 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 owns roughly 20% of its buildings through corporations. Based on cumulative reserves, the SICAV 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 SICAV, with a tax advisor where applicable.