Property transfer tax in Switzerland

Table: Property transfer tax by canton

Canton	Tax rate	Taxpayer	Remarks	Levied by
Bern	1.8%	Buyer		Canton
Luzern	1.5%	Buyer		Canton
Obwalden	1.5%	Buyer and seller 50/50, joint liability		Canton
Nidwalden	1.0%	Buyer, but seller is jointly liable		Canton
Freiburg	1.5%	Buyer	Municipalities may charge up to 100% additional	Canton, municipality (optional)
Solothurn	2.2% normal rate 1.1% reduced rate	Buyer	reduced rate when transferring ownership to spouse or descendant	Canton
Basel-Stadt	3,0% normal rate 1,5% reduced rate	Buyer	reduced rate for some owner-occupied properties	Canton
Basel-Land	2,5%	Buyer and seller 50/50		Canton
Appenzell Ausserrhoden	2,0% normal rate  1,0% reduced rate	As per agreement	Municipalities may set a lower rate. Transfer to descendants are taxed at the reduced rate.	municipality (mandatory)
Appenzell Innerrhoden	1,0%	Buyer, but seller is jointly liable		Canton
St. Gallen	1,0% normal rate 0,5% reduced rate	Buyer, but seller is jointly liable	reduced rate when transferring ownership to descendants or settlement between coheirs (parents to descendents)	municipality (mandatory)
Graubünden	2,0% maximal	Buyer, differing agreement is possible	Maximum rate. Municipalities set their own rates.	municipality (optional)
Thurgau	1,0%	Buyer, but seller is jointly liable		Canton
Wallis/Valais	1,0–1,5%	Buyer	progressive rate depending on the property value	Canton, municipality (optional)
Waadt/Vaud	2,2%	Buyer, but differing agreements are possible	Municipalities are free to charge up to 50% in addition to the cantonal tax	Canton, municipality (optional)
Neuenburg/Neuchâtel	3,3% normal rate 2,2% reduced rate	Buyer	reduced rate for owner-occupied properties and for exchanges	Canton
Genf/Genève	3,0% normal rate 1–2% reduced rate	Notary, cost forwarded to buyer	1% for estate settlements, easements and when exercising a right of repurchase, 1,5% when exchanging properties, 2% when exchanging agricultural properties	Canton
Jura	2.1% normal rate 1.7% reduced rate 1.1% reduced rate	Buyer	1.7% when purchasing your first home 1.1% when transferring ownership to spouses or descendants	Canton

 

What is property transfer tax in Switzerland?

Definition

The property transfer tax is a tax incurred upon the transfer of ownership rights to properties. It is levied on the purchase of real estate itself, meaning that the transaction as such is taxed with the real estate transfer tax (and not, for instance, the profit made with a sale). 

In Switzerland, this tax is not levied by the federal government, but by the cantons and/or their municipalities. In addition, not all cantons have it and different cantons refer to this tax by different names. 

 

What counts as a property?

According to Swiss law, a property does not only comprise the plot of land, but all objects and rights that are inseparable from the land. Among these are: 

• Properties (including land, buildings, and plants)
• Co-ownership shares in properties (e.g., condominiums)
• Independently registered and permanent rights in the land register (e.g., building rights, residential rights)
• Mines
• and more

 

Tax vs. fee

Different cantons use different terminology when referring to the property transfer tax. On top of this terminology, there is a systematic difference between cantons regarding the nature of the property transfer tax. The property transfer tax can be either: 

• Tax proper: The property transfer tax is levied on the transfer of ownership. A tax in the narrow sense is levied without consideration. 
• Fee: A fee is charged for a specific service provided by an authority to a person. Its purpose is to offset the costs for that service. 
• Mixed: A tax proper is combined with a fee. 

In some cantons (ZH, GL, ZG, and SH, UR), the real estate transfer tax works like a fee and not a tax in the narrow sense. In other cantons, the real estate transfer tax is either levied as a proper tax or as a mixed tax. 

 

Calculating the property transfer tax

In almost all cantons, the real estate transfer tax is calculated based on the purchase price of the property. However, if no purchase price is available (for instance, in cases of donation, inheritance, or exchange), or if the purchase price is significantly lower than the market value, then the basis for assessment becomes the market value or the official value. Some cantons have varying regulations in this regard.

Thus, the calculation of the real estate transfer tax typically follows this formula:

Property transfer tax = Purchase price x tax rate

 

When is the property transfer tax due? 

The property transfer tax is incurred upon change of ownership of a property. Purchases, gifts, or inheritances all fall under this category. 

In many cantons, transactions that are similar in outcome to sale are treated like a sale for the purpose of the property transfer tax. These include, depending on the canton:

• Converting a property or shares in a property from private to business assets.
• Converting sole ownership into co-ownership and vice versa.
• Changing co-ownership shares.
• Encumbering a property with easements or public-law property restrictions.
• Transferring participation rights in real estate companies.

It's essential to note that cantonal tax laws vary significantly, and not every one of these cases triggers property transfer taxes in every canton. In case of doubt, consult your local tax authority to determine if real property transfer taxes will be due in your specific situation.

 

Who pays the property transfer tax? 

In most cantons, the buyer is responsible for paying the real estate transfer tax, while in some cantons, both the buyer and the seller bear the obligation. If the seller is also liable for the tax, it's typically split equally between both parties. However, in most cantons, the contracting parties have the freedom to determine the allocation of the real estate transfer tax as they see fit.

The buyer is the taxpayer in the following cantons:

•     With exclusive liability in BE, BS, LU, SO, FR, NE, VS, JU.
•     In AI, TG, TI, SG, NW, where the seller is jointly liable for the real estate transfer tax.
•     In VD under joint liability of the seller, unless otherwise agreed.

Both the buyer and the seller owe the real estate transfer tax in equal shares in the following cantons:

•     BL.
•     OW, where parties can establish other provisions, but joint liability applies in any case.

Either the buyer or the seller is liable for the tax in the following cantons:

•     AG depending on the agreement, but always under joint liability of both parties.
•     AR depending on the agreement, otherwise split equally.

 

Cantons without property transfer tax

In the cantons of Zürich, Uri, Glarus, Schwyz, Zug und Schaffhausen, there is no property transfer tax in the proper sense. 

Fees in cantons without property transfer tax

Canton	Type of fee	Rates
Zürich	Notarisation and land register fees	0.1% each
Uri	Land register fees	0.2%
Glarus	Land register fees	0.35% when transferring property 0.2% for inheritances 0.3% for mortgage deeds
Zug	Land register fees	Hourly rate of CHF 180 times a multiple
Schaffhausen	Notarisation and land register fees	0,7% when transferring property 0,3% for mortgage deeds
Aargau	Land register fees (mixed tax)	0,4% of the purchase price
Tessin	⅛ fees, ⅞ property transfer tax	0,5–1,3% of the purchase price
Schwyz	-	0,09% but no more than CHF 13'500 for a mortgage deed Land register entry: small fee

 

Other fees when buying or selling property in Switzerland

When buying or selling a property, in addition to the real estate transfer tax, there are other taxes and fees to consider. Among the one-time costs in a real estate transaction are:

• Property gains tax: It is owed by the seller on the difference between the selling price and the acquisition costs. The buyer is jointly liable. It may be waived when purchasing another home shortly after selling. 
• Notary fees: The notary public authenticates the purchase contract to make the transfer of ownership legally valid. The notary charges a fee for this service, typically calculated as a percentage ranging from 0.1 to 0.5% of the purchase price, or based on the workload. Since the notary works for both parties, the notary fees are usually split between the buyer and the seller in most cantons.
• Land registry fees: After the purchase contract has been authenticated, the land registry entry must be updated. Only then does the transfer of ownership become legally binding. At the land registry office, you pay around 1 to 2 per mille of the sale price for this service.
• Charges for the mortgage deed: If the buyer encumbers their new property with a mortgage, a mortgage deed must be created. Fees are incurred for this, usually calculated as a percentage of the mortgage amount.
• Prepayment penalty: If a mortgage contract is terminated prematurely, the bank may charge a prepayment penalty. This can be avoided by transferring the mortgage to the buyer.

 

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