Fees and Additional Costs When Buying or Selling a House

January 5, 2023
  1. How much is the land registry fee?
  2. How much is the property transfer tax?
  3. How much is the notary fee?
  4. How much does a new mortgage note cost?
  5. How much is the real estate gains tax?
  6. How is the real estate gains tax calculated?
  7. Are fees and additional costs tax deductible?

When you buy or sell residential property, additional costs are incurred. These include ancillary purchase costs and ancillary sales costs, such as the land registry fee, property transfer tax or notary fee, which are usually shared by the buyer and seller, and real estate gains tax, which is only paid by the seller. In addition, there are the fees for a new mortgage note if the old or redeemed mortgage note cannot be reused. The fees and additional costs vary from canton to canton and can amount to up to five percent of the purchase price for a buyer. They may not be paid with the mortgage. That is why you should inform yourself before negotiating the price, so that you can take the fees and additional costs into account in the budget and put the money aside for them.

Houzy Hint

Tip

The division of the land registry fee, transfer tax and notary fee is customary, but not mandatory. Therefore, to be on the safe side, you should record them in writing in the purchase contract - or change the apportionment if the buyer and the seller agree.

How much is the land registry fee?

The land registry fee is due as soon as a change of ownership is entered in the land register. It is charged at a flat rate in most cantons and only in a few cantons on a time and material basis, for example in Zug. As a rule, the buyer and the seller share the land registry fee fifty-fifty. In the canton of Zurich, for example, notaries charge 0.1 percent of the sale price, which means for a condominium costing 1 million francs, 500 Swiss francs for the seller and 500 Swiss francs for the buyer. In the canton of Bern, the land registry entry costs 0.5 percent of the sales price, five times more than in Zurich, i.e. 2,500 Swiss francs each for the buyer and the seller.

Calculate roughly with 0.5 percent of the purchase price.

How much is the property transfer tax?

The property transfer tax is not levied in six German-speaking cantons of Switzerland: Glarus, Schaffhausen, Schwyz, Uri, Zug and Zurich. In exchange, they may charge a higher land registry fee. If the transfer tax is levied, it is calculated depending on the sales price. In the canton of Bern, for example, the amount exceeding 800,000 Swiss francs is taxed at 1.8 percent. For our example house, which costs 1 million Swiss francs, this makes 3,600 Swiss francs (200,000 Swiss francs x 1.8 percent). In the canton of Neuchâtel, the same change of ownership would be taxed at up to 33,000 Swiss francs. The property transfer tax is politically controversial; it is to be abolished or reduced.

Calculate roughly with 1.5 percent of the purchase price.

Houzy Advice

Good to know

The property transfer tax must be paid prior to the transfer of ownership.

Property Transfer Tax – Rheinfall
In six cantons, the property transfer tax is not levied, including Schaffhausen and Zurich.

How much is the notary fee?

The notary fee varies from canton to canton, sometimes even from notary to notary. The notary's offices in the cantons of Geneva, Vaud and Jura charge the most for property transactions, while the notary's offices in the cantons of Schwyz, Glarus and Appenzell Ausserrhoden charge the least. In cantons with an official notary's office, the fees are fixed; in cantons with independent notary's offices, you should obtain offers. In the canton of Bern you should expect notary fees of 0.5 percent of the sales price, in the canton of Zurich 0.1 percent. For our example house, this makes 2,500 Swiss francs each for the buyer and the seller in Bern, but only 500 Swiss francs for the buyer and the seller in Zurich. In return, the notary prepares the purchase contract, notarizes it and arranges for the entry in the land register.

Calculate roughly with 0.1 to 0.5 percent of the purchase price.

Houzy Advice

Good to know

Some cantons assume that the buyer pays the notary fees alone. For example, the canton of Ticino. If you don't want this, you must stipulate this in writing in the purchase contract. Keep this in mind if you want to buy a vacation home in Ticino, for example.

Houzy Hint

Tip

In «Vergleich der Gebühren für die öffentliche Beurkundung verschiedener Rechtsakte» of the Preisüberwacher (only available in German), you can see, among other things, how high the notary's fees are for real estate transactions such as public notarizations (page 10) or the establishment of real estate lien contracts (page 11).

How much does a new mortgage note cost?

The buyer needs a mortgage note as a pledge for the bank, pension fund or insurance company that is financing the purchase with a mortgage. A new mortgage note costs 0.1 to 0.3 percent of the pledged amount, depending on the canton. For our example house, which is sold for 1 million Swiss francs and mortgaged at 80 percent, this makes 2,000 Swiss francs in Bern and Zurich (0.25 percent of 800,000 Swiss francs), which the buyer bears alone. If the seller already has a mortgage note, it might be worthwhile to take it over to save the fees for the new mortgage note. As compensation, the buyer could pay the seller half of the original fee.

Calculate roughly with 0.1 to 0.3 percent of the pledge amount.


How much is the real estate gains tax?

Real estate gains tax is paid by the seller. Three factors define the amount: profit, length of ownership and location. The cantons calculate the tax very differently:

  • In most cantons, the real estate gain is taxed proportionally, for example at 30 percent. Other cantons calculate the tax progressively: the higher the taxable net profit, the higher the tax burden.
  • For example, a property gain of 500,000 Swiss francs is taxed six times more in St. Gallen (164,000 Swiss francs) after 10 years than in Sarnen (27,000 Swiss francs).
  • All cantons except Basel-Land and Obwalden grant discounts if a seller has owned his house or apartment for a long time. Zurich, for example, grants a 5 percent discount for sales after 5 years, 20 percent after 10 years and 50 percent after 20 years. Geneva is the only canton to waive property gains tax entirely after 25 years.
  • Instead, all cantons except Solothurn demand a surcharge on short-term real estate gains. Zurich, for example, charges 50 percent more for sales after less than 1 year and 25 percent more for sales after 2 years, Basel-Stadt even 60 percent more for sales after 3 years.

Houzy Advice

Good to know

If the seller fails to pay the real estate gains tax, the tax authorities can collect the outstanding tax bill from the new owner. In «Real Estate Gains Tax: What Sellers and Buyers Should Know», read how you can protect yourself as a buyer.

Houzy Hint

Tip

Real estate gains tax is deferred if you buy a replacement property in Switzerland with the proceeds of the sale. Learn more in our article «Real Estate Gains Tax: What Sellers and Buyers Should Know».

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How is the real estate gains tax calculated?

Sales price - investment costs = property gain. In most cantons, investment costs are defined in the same or similar way as in the canton of Zurich:

  • Purchase price or market value 20 years ago, if you have owned the house for more than 20 years
  • Value-enhancing expenses, for example for a new heating system or house facade, less insurance payments and contributions from the federal government, canton or municipality
  • Landowner contributions such as sidewalk, sewer or added value contributions
  • Real estate agent's commission for purchase and sale
  • Costs for advertisements for purchase and sale
  • Property transfer tax and land registry fees on purchase and sale

Houzy Hint

Tip

With our real estate gains tax calculator, you can calculate the tax for all cantons and simulate the effects of different selling prices or selling times. You may save money if you wait a few weeks or months before selling.

Are fees and additional costs tax deductible?

No. You may not deduct the additional costs of purchase or sale from the imputed rental value and thus from your taxable income. Homeowners can only deduct maintenance and administration costs (flat-rate or actual), insurance premiums and value-preserving investments. Land registry fees, property transfer tax, notary fees or real estate gains tax are not tax deductible.

Do not underestimate the real estate gains tax if you want to sell your house or apartment. For example, a real estate gain of 520,000 Swiss francs for a condominium in Winterthur purchased at the beginning of 2004 would be taxed today at just under 105,000 Swiss francs. That is 20 percent. Calculate the property gains tax and simulate the influence of different selling prices or selling times on the tax burden.

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