PwC-Immospektive Q2/17

Interpretation of the FPRE real estate meta analysis Q2/17

Swiss economy regains it’s confidence. While revenues in the construction industry remain above average the market for rental apartments is seeing bad omens for the first time. The forecasted economic growth is optimistic and likely to bring a pick-up in demand for office space.

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Kurt Ritz
Partner, Real Estate Advisory
+41 58 792 14 49

Marie Seiler
Director, Real Estate Advisory
+41 58 792 56 69

Samuel Berner
Real Estate Advisory
+41 58 792 17 39


Interpretation of the FPRE Meta-analysis Real Estate 1Q/16

The Swiss economy will struggle to gain momentum until 2017. However, farsighted investors may benefit from this situation. While prices for residential properties may have peaked, office properties in well-developed “B” locations might offer good investment opportunities. The slow economic recovery will increase demand for such properties. Owners of retail properties are also waiting for this kind of recovery. So far, consumers have spent their savings from low energy prices at online retailers or at foreign locations close to the Swiss border.

Find out more in the latest issue of PwC-Immospective for the 1. quarter 2016.


Two reasons to celebrate

This is the 200th blog that I have published since I started in June 2012. And as I missed celebrating the 100th blog, I am doubling my celebrations. This is a good excuse, because recently we successfully defended before the Federal Administrative Court (A-5099/2055 dated 20 January 2016) our client’s standpoint that demolition costs entitle to input tax deduction.

Specifically the issue was whether the input tax deduction is permissible on demolition costs, if the property was used for taxable purposes (option leased) and the owner later realises on part of the plot a residential building. The Federal Tax Administration (FTA) wanted to rely on the future use and to refuse the input tax deduction (see also the blog dated 20 April 2015). We took the view that the demolition of the building ended the former taxable use and the input tax deduction therefore must be permissible. The Court in effect agreed with us and allowed the input tax deduction. However it argued that between the demolition of the factory and the buildings being constructed there is only a loose connection. The supplies and services drawn for the demolition of the factory were from a VAT aspect not in temporal or factual (or spatial) proximity to the new buildings and therefore the input tax deduction is given in full.

 Read the full story on our VATelse Blog.