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HALLOWEEN

Reader question: Does Switzerland celebrate Halloween?

Halloween is a much awaited holiday on the North American calendar, but what about in Switzerland?

Switzerland has many scary year-round places and traditions.
Halloween is just around the corner, but in Switzerland it can be celebrated all year round. Photo by Monstera from Pexels

On the eve of Sunday, October 31st, kids in Switzerland, just like their counterparts in other countries, will put on their otherworldly costumes and go from door to door asking for candy.

Although it might resemble the Halloween familiar to Americans and Canadians, it is a relatively recent addition to the Swiss cultural calendar. 

At present, Swiss Halloween is more subdued than, say, in the United States, where this holiday is an all-out affair with funkily decorated houses and elaborate displays in many neighbourhoods.

And although it might be becoming more of a feature on the calendar, not everyone in Switzerland is pleased about it. 

Here’s what you need to know. 

Do the Swiss celebrate Halloween? 

Although the Swiss love weird myths and legends – and any excuse to dress up – it’s perhaps surprising that Halloween has no cultural footprint here. 

This is primarily because the cultural migration that saw Halloween spread across the world largely spared Switzerland. 

The holiday itself has ancient Celtic origins, but was later picked up by Christian cultures. Initially, it was particularly popular in Ireland and Scotland, where it was brought by immigrants to the United States and Canada respectively in the 19th century. 

Since then, it has spread across the globe thanks to the popularity of US culture. 

The festival’s popularity among children – which is of course helped by the fact that candy sits at the centre of the festivities – is also a big reason for its spread, which is certainly the case in Switzerland. 

Switzerland does however have a range of spooky festivals of its own – most of which take place at the end of winter – which can be seen at the following link. 

READ MORE: Five spooky Swiss festivals that rival Halloween

The pumpkin also has a storied history in Switzerland. Bern-based historian Sergius Golowin says that pumpkin lanterns have been lit for centuries in Switzerland as a way to bring the good forces of nature back to towns and cities from the countryside. 

“The pumpkin, it was said, was like a battery supplying energy,” he said. “And the energy of nature goes into the pumpkin at this time of year. So to have a pumpkin in your house gave you this energy.”

How is Halloween celebrated in Switzerland? 

A story from news outlet Swissinfo from 2003 spoke of this “American-style” festival “creeping” into Switzerland, which shows you how recently Halloween has become a thing here. 

Although the supermarkets might not be filled with pumpkin treats and cafes will (politely) ask you to leave if you ask for a pumpkin-spiced anything, in Switzerland the trick-or-treat aspect of Halloween resembles that elsewhere. 

READ MORE: How to drink coffee like the Swiss

Kids go from door to door, knocking and asking for candy.

Due to the patchy participation however, they are bound to get disappointed a few times over the night by households who are refusing to participate – or refusing to give them any candy (which for a child sounds relatively scary and might make up the ‘trick’ component of the trick-or-treat request). 

The spread of Halloween took a hit in 2020, with several Swiss cantons advising against the celebration due to pandemic concerns. 

It is however expected to rebound in 2021, weather permitting. 

How do the Swiss feel about Halloween?

Switzerland, as a conservative country which likes things not to change – think women getting the vote in 1971 – so it’s perhaps no surprise that there is significant resistance to Halloween. 

One reason for the reluctance is the Swiss preference to be reserved and withdrawn, rather than trying to outdo each other’s costume and efforts to be the life of the party. 

Another reason is that plenty still believe the holiday is primarily a commercial event to sell costumes and candy, rather than the more traditional, less commercial festivals held in Switzerland for generations. 

A 2017 survey in French-language Swiss paper Le Martin found that almost three quarters of respondents (72 percent) said it was a commercial holiday created to sell sweets. Just 21 percent said they planned to dress up – although it’s fair to say that no children were polled directly. 

A more recent study by Statista asked Swiss people if they welcomed the fact that Halloween was being more widely celebrated in Switzerland. 

Just under a third – 29 percent – said they were completely not happy Halloween was more widely celebrated, while a further 35.4 percent said they were somewhat miffed about it. 

One quarter (25.6 percent) said they were OK with it, while only ten percent were genuinely enthusiastic about the idea. 

Statistik: Begrüßen Sie es, dass Halloween bei uns immer stärker gefeiert wird? | Statista
Mehr Statistiken finden Sie bei Statista

Again, this study is unlikely to have targeted any kids directly, which is worth keeping in mind when thinking about enthusiasm for the festival. 

What spooky traditions can I get up to in Switzerland this year?

If you’ve got your heart set on a spooky time and can’t wait for the end of winter, one option is to familiarise yourself with Swiss ghosts through a haunted house visit. 

Not just at Halloween but all year round, Switzerland has its share of ghostly legends.

Creepy castles, haunted houses and restless spirits abound here, including in the medieval alleyways of Bern’s Old Town.

As legend has it, a narrow building at Junkerngasse 54, which has been unoccupied for decades, is haunted by a woman dressed in black who sometimes appears at a window.

Then, there is the bell tower of a 12th-century Lenzburg Castle in Aargau, which is believed by the locals to be haunted —the bell is said to ring out at a full moon, even if there is no one in the castle.

Another castle, Chillon in Vaud, is also surrounded by ghostly legends. The 10th–century fortress has a dungeon where —according to a poem “The Prisoner of Chillon” penned by Lord Byron — a Geneva monk was imprisoned in the 16th century.

As though this is not scary enough, Chillon also claims to house the ghost of a Savoy duchess, Agnès de Faucigny.

The Chillon Castle claims to have a ghost of its own. Photo by FABRICE COFFRINI / AFP

READ MORE: The spookiest places in Switzerland

So, as you can see, there is an abundance of “Halloween spirit” in Switzerland all year round.

If, however, you have your heart set on celebrating Halloween this week, this link highlights some of the events in Switzerland.

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PROPERTY

Reader question: Are second homes in Switzerland subject to higher taxes?

Will you need to pay more tax on a second home in Switzerland? Here’s what you need to know.

Reader question: Are second homes in Switzerland subject to higher taxes?

When purchasing property in Switzerland you must become acquainted with the so-called ‘unity of residence’ (ZGB 23 para. 2) principle, which dictates that anyone living in Switzerland may only have one main residence within the Confederation. Since second homes – including holiday homes – are considered a luxury in Switzerland, you will sadly not be able to save much on tax when securing a second abode in the country.

First things first, what is considered a second home in Switzerland?

Whether your home is a second home as per Swiss regulations will depend largely on what purposes it is used for.

There are two categories of second homes in Switzerland: second homes and second places of residence.

A second place of residence, as the name suggests, is a place where a person lives while working or studying but is not their primary residence.

READ MORE: Does owning a second home in Switzerland give me the right to live there?

Technically speaking, second places of residence are not second homes.

These are common, for instance, with cross-border workers whose primary residence may be in a neighbouring country but who have a place of residence near their work in Switzerland.

A second home for the purposes of the law is therefore a second residence which is not uses for work or study.

The official government definition is as follows:

“In Switzerland, a second home is a house or apartment that is neither used by a person who is resident in the commune concerned nor used for work or education purposes. Second homes are often used either as holiday homes or are rented to private tenants.”

READ MORE: How can I buy a second home in Switzerland?

Do I need to pay higher tax on my second property?

In Switzerland, second homes are taxed in much the same way as primary homes. Just as with a primary property, if you use your second home yourself, you will still have to pay tax on the imputed rental value as income (rental value tax). Under Swiss law, owner-occupiers effectively “rent” their home to themselves. 

The rent that would be earned if the property were to be rented out on a permanent basis is extrapolated. This is also the case if you’re unable to use your property all year round due to unfavourable weather conditions, such as risk of avalanches or heavy snowfall.

As there is no actual rent, this is charged on a rate of roughly 60 to 70 percent of what the notional rental value of the home would be if it was leased on the open market.

READ ALSO: How prices of Swiss mountain homes are expected to drop

You can deduct this amount – and maintenance costs on the property – in your annual tax return.

If you do rent out your second home, income tax will be due on the rental income. In that case, taxation of the imputed rental value is suspended.

Among Switzerland’s 26 cantons, Bern is the only canton to have implemented a different rule when it comes to taxing second homes. Since January 1st 2011, only the slightly higher rental value for direct federal tax is applied to second homes, and thus also at cantonal level.

Moreover, owners of second homes should also note that if the property is partially let to guests, the imputed rental value will only be taxable proportionately and the rental income must also be taxed.

What other tax will I have to pay on my second home?

Additionally, just like with a primary property, with a second home too, you will be liable to pay cantonal property tax.

This usually amounts to less than one percent of the property’s value per year. The ‘value’ is the total market value of the property, regardless of mortgages or other debts.

Around half of Switzerland’s cantons charge this tax, with Zurich, Zug and Basel Country being some notable exceptions.

This tax is most common in areas where second home ownership is common, i.e. tourist areas and winter sports locations.

Although you will include both homes in the one tax return, the effective tax rate is based on the location of each home, rather than where you reside.

Additionally, you may also be liable for the annual capital tax, which is part of a broader wealth tax on all assets held in Switzerland or abroad.

As with the cantonal property tax, this is generally less than one percent of the value of the property (more commonly less than half a percent).

A home in Matt, Glarus Süd, Switzerland.

A home in Matt, Glarus Süd, Switzerland. Photo by Steffen Lemmerzahl on Unsplash

Unlike the cantonal property tax, the ‘value’ of the property also includes debts such as mortgages, meaning that the amount you pay is likely to be lower than the market value of the property.

Does capital gains tax also apply to holiday homes?

In Switzerland, with (almost) every property sale, the seller is obliged to pay tax on net profit made in the sale: the capital gains tax. In general, the longer you own your property, the lower your tax burden will be. This also means that if you buy a property and choose to sell up following short ownership, you will be liable to pay a much higher tax.

This also applies to second homes, but there’s more. If you are looking to sell your second property after only owning for less than five years, you may even be obliged to pay a tax surcharge in some Swiss cantons to counter real estate speculation.

Additionally, in the canton of Bern only full years are counted towards the ownership duration, hence why it makes sense to plan a potential sale in advance. Whether you own a primary or second property, however, it is crucial you keep track (receipts) of all maintenance work you have had done to the property that could lead to an increase in its value.

READ ALSO: Why you can be taxed four times over for owning a home in Switzerland

Can I reduce the capital gains tax on my second home?

When looking to sell your second home, you may be able to reduce the profit if you can prove increased acquisition costs. These would also include any maintenance or construction work you have had done to your property that may have led to an increase in value.

In Switzerland, you can also spread out larger maintenance work over several years, however, this would only make sense in the financial sense if the effective maintenance costs fall above the flat rate in all tax years concerned. If that is not the case, it would be smarter to benefit from the flat rate in one year and then deduct the full costs in different year.

In general, there is no tax-privileged replacement purchase for any type of second home, be it a house or an apartment.

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