Acquisition costs in Switzerland: what should you know?
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Buying real estate in Switzerland involves more than simply paying the purchase price. Various additional costs are added to the final bill and can represent up to 5% of the total amount. Here is a complete overview of property acquisition costs in Switzerland, broken down by canton.
Buying property in Switzerland: costs to expect beyond the purchase price
Acquiring a property in Switzerland is not limited to paying the agreed price. Several extra charges come into play, known as acquisition costs. The main items to anticipate include:
- Transfer duties, collected by the canton or the municipality
- Notary fees, covering the sales deed
- Land register fees, for the official transfer of ownership
- Mortgage deed fees, if a mortgage loan is taken out
Note: while some costs may be shared between buyer and seller, transfer duties are generally borne exclusively by the buyer.
The total amount of these costs depends on the canton, the value of the property, and the financing structure. They can account for up to 5% of the purchase price. Importantly, these expenses cannot be financed through a mortgage loan: they must therefore be included in your personal contribution from the very start of the planning phase.
What acquisition costs should you expect when buying property in Switzerland?
In the high-end property market, anticipating all costs associated with an acquisition is essential to secure the transaction and avoid any unpleasant surprises. These expenses are not limited to transfer duties: they include a range of regulatory, administrative and notarial fees, whose significance varies depending on the canton and the type of property.
1. Transfer duties: taxation that varies by location
Whenever a property changes ownership, a tax is generally levied by the canton, sometimes supplemented by the municipality. This tax, known as transfer duty, is calculated on the sale price.
Each Swiss region applies its own rules: some impose a proportional tax, others apply administrative fees, or a combination of both. For any informed investor, it is crucial to obtain precise information on the cantonal regulations before making a formal offer.
2. Notary fees: the key to a legally valid transaction
A visit to the notary is unavoidable. The notary formalises the sale by drafting the authentic deed of sale. However, notarial fees vary depending on the system in place in the canton:
- In cantons with a state notary system, fees are fixed in advance, with no room for negotiation.
- In cantons with a private notary system, the cost depends on the notary office’s practices, with sometimes higher fees.
In general, expect between 0.1% and 1% of the sale price, depending on the property’s value, location, and the legal complexity of the transaction.
3. Land register fees: formalising the transfer of ownership
Every transaction must be recorded in the land register, which officially certifies the change of ownership. This registration involves fees calculated according to several factors:
- the sale price,
- the volume of administrative work required to process the file.
These costs, although modest (often below 1% of the purchase price), must be anticipated. In most cases, they are shared between buyer and seller, unless otherwise agreed in the contract.
4. Mortgage deed fees: a cost linked to bank financing
When the purchase is financed with a loan, the lending institution requires the creation of a mortgage deed on the property. Setting up or transferring this deed involves costs proportional to the financed amount, generally between 0.1% and 0.3% of the borrowed capital.
Note: if a mortgage deed already exists and can be transferred, this cost can be optimised or even avoided – representing a significant saving on a high-value property.
Acquisition costs linked to financing: what you need to know
The financing method of your property purchase can have a direct impact on both the costs incurred and the legal constraints involved.
If you plan to finance your purchase through an early withdrawal from the 2nd or 3rd pillar, several elements must be taken into account:
- A specific tax applies, calculated on the withdrawn capital, at a preferential but still significant rate.
- A restriction on the right of disposal is generally entered in the land register: this means the property cannot be resold without first reimbursing the withdrawn amounts.
This solution can make home ownership more accessible, but it must be used with caution, especially if you are considering a medium-term resale.
When are acquisition costs due?
The costs related to acquisition are invoiced at different key stages of the process:
- At the signing of the authentic deed, the notary issues their invoice.
- At the registration of the property in the land register, transfer duties and registration fees are due.
- Other costs, such as those linked to the mortgage deed, are usually invoiced by your bank or notary.
Each party involved (notary, cantonal administration, land registry office) issues a separate invoice, sometimes simultaneously, sometimes within a few days of each other.
Are acquisition costs tax-deductible?
In principle, acquisition costs are not deductible from your taxable income in Switzerland. However, once you are a property owner, certain expenses may be deductible under specific conditions:
- Maintenance or renovation works, if they aim to preserve or improve the property’s value.
- Energy-saving or efficiency-related expenses, depending on the canton’s tax policy.
It is advisable to consult a local tax expert to maximise the deductibility of any future works.
In Switzerland, buying property requires a comprehensive budgetary approach that goes far beyond the displayed purchase price. By anticipating every cost item, surrounding yourself with professionals (notary, tax advisor, banking consultant), and integrating these fees into your financing plan from the outset, you lay the foundations for a secure and sustainable property investment.
FAQ on acquisition costs in Switzerland
What acquisition costs should be expected in Switzerland?
The main acquisition costs include:
Transfer duties (cantonal/communal tax on the transfer of ownership).
Notary fees for drafting and signing the authentic deed.
Land register fees, necessary to officially record the transfer of ownership.
Mortgage deed fees, in the case of financing through a loan.
What is the average percentage of acquisition costs in Switzerland?
Depending on the canton and the value of the property, acquisition costs average 2% to 5% of the sale price. They cannot be financed with a mortgage loan and must therefore be covered by the buyer’s personal contribution.
Who pays the acquisition costs: buyer or seller?
In most cantons, transfer duties are borne by the buyer. Notary and land register fees may be shared, unless otherwise specified in the sales contract.
When must acquisition costs be paid?
Notary fees: at the signing of the authentic deed.
Transfer duties and registration fees: at the time of entry in the land register.
Mortgage deed fees: invoiced by the bank or notary when the financing is set up.
Are acquisition costs tax-deductible in Switzerland?
No, acquisition costs are not tax-deductible. However, certain maintenance or energy renovation works carried out after purchase may be deductible, depending on the canton’s rules.
Do acquisition costs vary by canton?
Yes. Each canton sets its own rates for transfer duties, notary fees, and land register fees. For example, Geneva applies a 3% transfer duty, while in some cantons such as Zurich, there are no traditional transfer duties but only reduced administrative fees.
