Casatax in Geneva: Facilitating homeownership.

I. The Origins of Casatax

The story of Casatax dates back to 2002. It was in this year that the Geneva Real Estate Chamber (CGI) presented a popular initiative. Their goal? To make property ownership more accessible to the residents of the canton of Geneva. This initiative was well-received and eventually led to the adoption of the Casatax regulation. For those keen on diving into the legal specifics, the provisions of Casatax are inscribed in the law on registration rights (LDE art. 8A).

II. Major Benefits of Casatax

The primary benefit of Casatax is that it allows for a 50% reduction in registration fees when purchasing real estate. To put this into perspective, consider that these fees account for 1.5% of the total property value. This might seem minimal at first glance, but when one considers that this 1.5% must be entirely financed from personal funds, the financial impact becomes evident. Moreover, it's crucial to note that neither bank loans nor 2nd pillar funds can be used to cover these fees.

III. Conditions to Benefit from Casatax

Like any regulation offering financial benefits, Casatax comes with its set of conditions. To benefit from the "Casatax discount", a buyer must:

• Ensure the purchase price is below an amount adjusted each year.

• Use the real estate as their primary residence. This involves providing proof of residence within two years of purchase and committing to reside there for at least three years.

• Be an individual. If a company makes the purchase, Casatax does not apply.

• Apply to benefit from Casatax during the property transfer. It's crucial to note that the Casatax discount cannot be obtained retroactively.

IV. Consequences of Not Meeting the Conditions

It's essential to adhere to all the conditions associated with Casatax. If a beneficiary fails to meet these conditions, the tax authority can reclaim the discount granted during the purchase. For instance, if an owner sells their property before the end of the required three years, the State can demand the repayment of the offered reduction.

V. Types of Eligible Properties

Casatax is not universally applicable to all property types. Only homes, be it a PPE apartment or a house, are eligible. While finding a villa that meets Casatax criteria is challenging, there have been instances where buyers managed to benefit from this tax advantage.

Conclusion

Casatax is a shining example of how an initiative can help make homeownership more accessible. For residents of Geneva, it represents a significant opportunity to realize their dream of owning a home or apartment. By understanding the benefits and conditions associated with Casatax, potential buyers can make informed decisions and fully benefit from this regulation.