Property transfer tax in Switzerland
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In Switzerland, the property transfer tax is a fee levied by the cantons – and in some cases by municipalities – whenever ownership of a property changes following a purchase. The amount of this tax varies from region to region. What exemptions are available? And above all, who is responsible for paying it during a sale?
Definition of property transfer tax
The property transfer tax is a levy charged when ownership of a property changes hands, whether through a purchase, a gift, or an inheritance involving a house, an apartment, or land.
Unlike federal taxes, these duties are set at cantonal level – and sometimes at municipal level –, meaning they vary significantly depending on the property’s location, both in terms of rates and conditions of application or exemption.
How is property transfer tax calculated?
In most Swiss cantons, the property transfer tax is calculated based on the purchase price of the property. The commonly applied formula is straightforward:
Tax amount = purchase price × applicable cantonal tax rate
When the transfer involves no financial consideration – such as a gift, exchange, or inheritance – the calculation is based on the fair market value of the property, i.e. its estimated value on the market.
Note: some municipalities apply an additional local tax, which is added to the cantonal levy.
Who pays the property transfer tax?
In the majority of Swiss cantons, the buyer is responsible for paying the property transfer tax. However, the rules vary depending on the property’s location:
- In certain cantons such as Geneva, Vaud or Neuchâtel, the costs are borne entirely by the buyer.
- In others, they are split equally between buyer and seller (e.g. Basel-Landschaft, Obwalden).
- In some regions, the distribution is left to mutual agreement between the parties, subject to joint liability.
Before completing a transaction, it is therefore crucial to formalise this aspect in the sales contract to avoid any ambiguity.
Cantons exempt from traditional property transfer tax
In several Swiss cantons, traditional property transfer taxes have been abolished and replaced by administrative fees related to the registration of the transaction:
| Canton | Type of fee | Rate |
| Zurich | Notary + land register | 0.1% each |
| Uri | Land register | 0.2% |
| Glarus | Land register (transfer of ownership) | 0.35% |
| Zug | Land register (hourly rate) | CHF 180/hour |
| Schaffhausen | Notary + land register | 0.7% |
| Schwyz | Flat-rate compensation (mortgage-related) | 0.09%, max CHF 13,500 |
Comparison of property transfer tax by canton
| Canton | Standard rate | Who pays? | Notes |
| Geneva | 3.0% | Buyer | Reduced rate for inheritances |
| Vaud | 2.2% (+ municipality) | Buyer (often solely) | Municipalities may add up to 50% |
| Valais | 1.0–1.5% | Buyer | Progressive rate |
| Neuchâtel | 3.3% | Buyer | Reduced to 2.2% for primary residence |
| Basel-Landschaft | 2.5% | 50/50 seller & buyer | Equal sharing is mandatory |
| St. Gallen | 1.0% | Buyer | Reduced rate for family transfers |
| Fribourg | 1.5% (+ municipality) | Buyer | Municipalities may double the base rate |
Good to know: for a complete list of rates, consult the official website of your cantonal tax authority.
Property transfer tax: main exemptions
Certain situations benefit from a full or partial exemption from property transfer tax, according to specific criteria defined by the cantons. These exemptions may be objective, when they concern the nature of the transfer, or subjective, when they depend on the profile of the parties involved.
Exemptions related to the type of transaction
- Inheritance: in the vast majority of cantons, inheritances are exempt from property transfer tax.
- Gifts between family members: often exempt or subject to a symbolic rate.
- Transfers between spouses or within family regrouping: partial or full exemption depending on the canton.
- Forced sales (judicial sale, bankruptcy, etc.): several cantons waive the tax in these cases (notable exceptions: Bern, Fribourg, Aargau, Vaud).
Exemptions related to the identity of the parties
- Public authorities: Confederation, cantons, municipalities.
- Churches recognised as being of national interest.
- Foundations of public utility or with a social purpose, subject to specific cantonal rules.
Additional costs to anticipate in a property transaction
Beyond property transfer tax, the purchase or sale of real estate in Switzerland also involves other mandatory fees:
- Property gains tax: payable by the seller, calculated on the capital gain realised.
- Notary fees: ranging between 0.1% and 0.5% of the sale price, depending on the canton.
- Land register fees: around 0.1% to 0.2% of the property’s value.
- Creation of a mortgage certificate, if financing is secured through a loan.
- Early repayment penalty: a charge applied if the seller terminates a mortgage before its contractual maturity.
The property transfer tax can represent a significant share of the total cost of a property transaction in Switzerland. To avoid unpleasant surprises, it is essential to understand the local tax rules, anticipate complementary fees (notary, registration, capital gains tax) and above all, clearly define the allocation of costs in the sales contract.
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FAQ on property transfer tax in Switzerland
How is property transfer tax calculated?
In most cantons, the tax is calculated on the purchase price of the property, or on its fair market value in the case of a gift or inheritance. The formula is straightforward: amount = purchase price × cantonal rate, sometimes with an additional municipal levy.
Who pays the property transfer tax?
In the majority of cantons such as Geneva, Vaud or Neuchâtel, the buyer assumes the full cost. In others, including Basel-Landschaft and Obwalden, the tax is split evenly between buyer and seller. Some regions also allow the parties to agree freely on how to divide the cost, though joint liability remains the rule.
Which cantons are exempt from traditional transfer tax?
A few cantons have abolished the standard duty and replaced it with administrative fees linked to the registration of the transaction. In Zurich, for instance, you can expect around 0.1% for the notary and the same for the land register. Uri applies 0.2% on the land register, Zug charges CHF 180 per hour, while Schwyz imposes a flat fee tied to the mortgage (0.09% capped at CHF 13,500).
What are the average rates by canton?
They vary significantly. Geneva applies 3% (buyer only), Vaud 2.2% plus a municipal surcharge, and Neuchâtel 3.3%, reduced to 2.2% for a main residence. Valais charges between 1 and 1.5%, Basel-Landschaft 2.5% shared equally, while Fribourg applies 1.5% plus a municipal tax.
Are there exemptions from property transfer tax?
Yes. In most cantons, inheritances are exempt. Family donations are often free of charge or subject to a symbolic rate, and transfers between spouses or within family regrouping usually benefit from partial or full exemption. Some cantons also waive the tax in forced sales such as judicial auctions or bankruptcies, though exceptions remain in places like Bern, Vaud or Fribourg. Public bodies, churches of national interest and certain non-profit foundations may also be exempt.
What additional costs should buyers expect?
Alongside transfer tax, a real estate transaction in Switzerland usually involves notary fees (0.1–0.5% of the price), land register fees (0.1–0.2%), and, in case of financing, the issue of a mortgage certificate. The seller may also face a property gains tax on capital gains and possibly an early repayment penalty if a mortgage is closed before maturity.
Why is it important to anticipate property transfer tax?
Because it can represent a significant part of the overall cost of acquisition. Buyers and sellers should carefully review cantonal tax rules, plan for additional fees, and clearly set out the distribution of costs in the sales contract to avoid unpleasant surprises.
