What costs are incurred when selling property?

Legal fees

When purchasing property or land, the purchase agreement is drawn up and authenticated by a solicitor. Once the contract has been signed, the solicitor also arranges the land registry entry. These legal services cost money, of course, but in Switzerland the amount varies from canton to canton. In the canton of Zurich, for example, 0.1 percent of the purchase price is payable, while in Bern it’s 0.5 percent. Normally, legal fees are divided equally between the purchaser and seller.

Property transfer tax

This tax is generally payable when a property is transferred, regardless of whether you made a profit or loss when selling your property, but doesn’t apply in every canton. No property transfer tax is payable in the cantons of Aargau, Schwyz, Zug and Zurich. But how much is this property transfer tax in other cantons? On average, it’s about 1.5 percent of the sales price in the canton of Lucerne, for example. However, it’s best to contact your local tax authority directly in order to accurately estimate these costs.

Land registry fee

Once the purchase agreement has been signed, a fee is payable for the land registry entry. Here too, the cost varies considerably from canton to canton. On average, it’s around 0.5 percent of the purchase price and both parties usually share this fee, as with the legal costs.

Mortgage certificate

When a property is mortgaged, a mortgage certificate is produced that acts as a kind of security for the purchaser’s bank. If the owner is no longer able to pay the mortgage at any point, the bank may seize the property in question. The cost of producing this mortgage certificate is borne solely by the purchaser. If a mortgage certificate already exists, however, it may be worth transferring this if appropriate. This issue could also be broached when negotiating the sale price.

Property gains tax

The seller is liable for property gains tax, which can be extremely high, depending on the canton and the increase in the property’s value. The difference between the purchase and sales price is central to this. The length of time you’ve owned the property also plays a role when calculating property gains tax. The shorter the ownership period, the higher the property gains tax.

In a few special cases, such as inheritance, transfer of ownership between family members or the sale of an owner-occupied residential property, property gains tax is deferred or completely waived. NB: when selling an owner-occupied property, property gains tax is only waived if you purchase another property within a statutory period and reside there for the remainder of your life.

Estate agent’s commission

If you place your property in the hands of our experts, estate agent’s commission will be payable, in addition to other costs. The amount of estate agent’s commission is not legally regulated and is negotiable. Although many sellers dread the cost of estate agent’s commission, it can ultimately be recouped thanks to a higher sales price. Our property consultants know how to achieve the best price, allowing you to make maximum profit on your sale.

We’ll be happy to assist with the sale of your property. Just get in touch! We look forward to hearing from you.