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I am in the process of buying a condo in Switzerland and have come across the word “Wertquote” several times in the process. This seems to be some sort of measure of my ownership in the overall building. Any further insights would be appreciated.
A co-ownership share (German: Wertquote) represents your share of ownership in a jointly-owned building. Understanding co-ownership shares is of crucial importance because they can heavily impact your finances.
Co-ownership shares are typically shown as a fraction (40/100 or 50/1000 for example). This fraction represents your share of a building’s value. This fraction is clearly stated in the notary register.
How are co-ownership shares determined?
The rules used to determine co-ownership ratios are set out in a condominium’s statutes. The primary factor in determining co-ownership shares is the size of your apartment (floor space in square meters and cubic volume). Other factors which affect the value of an apartment may also increase the co-ownership share. These could include ease of access, garden size, elevator access, views, geographic orientation, access to balconies or terraces and many more.
How co-ownership shares affect you
Your co-ownership share in a building determines how much you have to contribute to collective costs (renovation, maintenance, communal facilities). If you have a larger co-ownership share than your co-owners, you have to pay a larger share of the expenses. This ratio also determines your liability for collective debt.
Taxes are another area in which co-ownership ratios play a major role. Most cantons and municipalities add a fictional rental income to your taxable income. In other words, the amount which you would pay to rent your home is considered to be income for tax purposes. The higher your co-ownership ratio, the higher the fictional “rent” is. So this ratio directly affects how much you pay in income taxes.
But co-ownership shares can also have positive effects. Your co-ownership ratio determines your share of income earned by renting out communal areas or parking space. It also determines the share of buildings insurance benefits you receive for collective claims.
More on this topic:
10 Things to Consider Before Buying a Home in Switzerland
Housing in Switzerland: rent or buy?
Leaseholds in Switzerland explained
Home rent or buy calculator
Land Prices in Switzerland: How Much Will 1 Square Meter of Paradise Cost You?
