Key Costs to Consider When Selling a Property
1. Property Gains Tax
Property gains tax (“Grundstückgewinnsteuer” in German, “Impôt sur les gains immobiliers” in French) is a tax on the profit made from selling a property.
- Calculation: This tax is based on the difference between the selling price and the acquisition costs. Deductible expenses include value-enhancing investments, notary fees, and broker commissions.
- Regional Variations:
- In Zurich and Zug, the tax is collected by municipalities.
- In Basel-Stadt, Bern, Freiburg, Graubünden, Jura, Obwalden, and Schaffhausen, both the canton and municipalities levy the tax.
- Elsewhere, only the canton collects the tax.
- Rates: Typically, around 40% on profits exceeding CHF 100,000, with lower rates for smaller profits or long ownership durations.
- Speculation Surcharges: Cantons (except Solothurn) impose higher rates for properties sold shortly after acquisition. However, tax rates generally decrease with longer holding periods, potentially saving significant money by delaying the sale.
- Replacement Purchase: If the sale proceeds are reinvested in a new owner-occupied property within a specific timeframe, the tax can be waived.
2. Property Transfer Tax
Property transfer tax (“Handänderungssteuer” / “Droit de mutation”) is applied when property ownership changes hands.
- Rates: Typically 1-3% of the purchase price, but some cantons tax the fair market value if the transfer price is below market rate.
- Payment Responsibility: Often split between buyer and seller, but practices vary by canton.
- Exemptions: Transfers between spouses or descendants and transfers due to inheritance or gifts are frequently tax-exempt or subject to lower rates.
- No Tax: Cantons such as Zurich, Uri, Glarus, Zug, Schaffhausen, Aargau, and Ticino do not impose a traditional property transfer tax.
3. Notary Fees
In Switzerland, property sales must be notarized, and associated fees vary by canton.
- Fee Structure: Fees are typically 0.1-0.5% of the purchase price or calculated based on time and effort.
- Jurisdictional Differences:
- In cantons without public notaries, private notaries licensed by the canton handle the notarization.
- In cantons with public notaries, these officials are employed by the canton and assigned to the case.
- Mixed systems feature both public and private notaries.
- Cost Splitting: Fees are usually shared equally between buyer and seller.
4. Land Registry Fees
To finalize a property transfer, the new owner must be registered in the land registry.
- Rates: Typically 0.1-0.2% of the purchase price.
- Additional Fees: In cantons where the land registry office also serves as the notary, extra costs for authentication may apply.
5. Additional Costs
- Mortgage Penalties: Early mortgage redemption often incurs prepayment fees. These can be substantial, especially for long-term fixed-rate mortgages.
- Energy Performance Certificates: An energy performance certificate (GEAK/CECB) may be required in some cantons, adding to the cost.
- Brokerage and Advertising: Traditional real estate agents charge a commission, typically around 3% of the selling price, plus expenses, which can total CHF 30,000-50,000. Neho offers an alternative fixed fee of CHF 12,000, including photography, virtual tours, and advertising.
Planning Your Sale
Navigating the fees and taxes associated with selling property in Switzerland can be complex due to canton-specific variations. For personalized advice and assistance tailored to your situation, consult with a knowledgeable local real estate agent. They can help you optimize costs and ensure a seamless transaction.
