Tax value of real estate in Geneva: +12% in 2025, what changes for owners

On 18 June 2023, Geneva voters approved Law 13030 on the tax valuation of certain properties (LEFI). This law, which entered into force on 1 January 2025, fundamentally changes the rules for assessing tax values for property owners in the canton. It replaces the previous 2018 regime, which provided for a 7% annual increase until 2028. The rate is now set at 12% for the 2025 tax period, as stated by the Geneva cantonal tax administration on its official website.

In concrete terms, the tax value of your property (villa, condominium) reported in your cantonal and communal tax return (ICC) will be increased by 12% for 2025. This increase will be communicated to you in the taxpayer information for the 2025 return. For example, a property with a tax value of CHF 800,000 will rise to CHF 896,000, an increase of CHF 96,000 in the taxable base for cantonal wealth tax.

Federal direct tax (FDT) is not affected by this change, as Switzerland does not have a wealth tax at the federal level. Only cantonal and communal tax (ICC) is impacted. This is an essential distinction to understand to avoid overestimating the overall tax impact. Geneva taxpayers will see their cantonal wealth tax increase proportionally to the rise in tax value, but not their federal tax.

The LEFI also brings two other major changes for property owners. First, for properties held by individuals as their main residence, the supplementary property tax is reduced to 0.2 per thousand of the tax value. Second, when a property is sold after 25 years or more of ownership, the rate of tax on real estate capital gains is now set at 2%. These measures aim to ease the tax burden on long-term owners.

An important exception remains: properties purchased, built or inherited within the last 10 years are not subject to the tax value increase. Their tax value continues to be calculated under the rules in force at the date of acquisition, based on the purchase price or updated actual value. If you bought your property in 2018 or later, check with your fiduciary whether the 12% increase applies to your situation.

Be careful not to confuse tax value (used for wealth tax) with rental value (used for income tax). These are two separate concepts with their own indexing rules. Tax value relates to cantonal wealth tax, while rental value relates to income tax. Confusing these two concepts is one of the most common errors in Geneva property owners' tax returns.

Finally, note that in the longer term, rental value taxation will be abolished at the federal level on 1 January 2029, as confirmed by the Geneva tax administration in March 2026. This major reform will profoundly change Swiss property taxation. At MVO Fiducia, we closely monitor these developments and support you in optimising your property tax situation in Geneva. Contact us for a personalised analysis of your file.