Real estate
If several properties are held as private assets, the question of commerciality often arises. If properties held as private assets are managed commercially (so-called "property traders"), the tax authorities may conclude that this constitutes self-employment, with consequences for the tax and social security treatment of the properties concerned.
A transfer of real estate from private assets to a legal entity can be carried out tax-free under certain circumstances and represent a sensible alternative to self-employment.
The development and subsequent sale of real estate by legal entities can be challenging from a tax perspective, especially if the legal entity is subject to tax in different cantons. In addition, the option portion of any VAT optimisation must be calculated carefully and correctly.